Federal Tax Tables
Federal Tax Tables
The IRS announced recently that most of the tax rates would remain unchanged or may change slightly for the year 2010. The 2009 tax brackets would be largely followed in the year 2010 too. Low inflation and slow economy has largely stagnated growth and due to it the IRS have decided to keep the tax slabs similar to last year. The federal tax table for 2010 has been formulated by the IRS by using the consumer price index (CPI) data released by the Bureau of Labor Statistics (BLS). For those of you who have to file your returns in 2010, it would please you to know that the personal exemption amount and standard deduction would remain unchanged from the 2009 federal tax table rate.
Calculating your tax rate isn’t that difficult and you only need to know about the federal tax table to be able to file your returns on time. For 2010, the personal exemption will remain unchanged along with standard deduction, similar to the tax rate of 2009, so you do not need to worry about that. The form should be filled up carefully and though it may look complex, once you read it thoroughly you would find that understanding the table isn’t that difficult at all.
Once you have read the form, then you must look at your income and the amount of tax that you owe. You should then look at the federal tax table to calculate your legal deduction from your total income to arrive at the total tax payable. If you have credits then you must subtract them and add on any penalties you owe to the total payable tax.
When you look at it you must apply your income to each tax bracket to calculate the exact amount that you owe to the IRS. You should apply your income to each range because you don’t want your income to be taxed at the highest rate. It provides various reductions and you can easily deduct your total income by a substantial rate to lower your taxes.
With the federal tax table for 2010 remaining almost similar to the 2009 tax table bracket, the process of filing taxes have become much easier. This has also created a level playing field for taxpayers from all brackets. You can easily avail the tax rates from any tax attorney or from the government sites.