Wondering why only a small percentage of married people opt to file separately? In most circumstances, filing jointly provides a tax break. In rare cases, such as when one spouse is subject to tax refund garnishing because of unpaid debts to the state or federal government, opting for the “Married filing separately” tax status can be advantageous.Ģ017 FEDERAL INCOME TAX BRACKETS Married Filing Separately Tax Rate $0 – $9,325 10.0% $9,326 – $37,950 15.0% $37,951 – $76,550 25.0% $76,551 – $116,675 28.0% $116,676 – $208,350 33.0% $208,351 – $235,350 35.0% $235,350+ 39.6%Īs you can see, the brackets for individuals filing singly and those whose filing status is “Married filing separately” are not the same. If you’re planning on choosing this filing status, consult the first table below. If you’re married but don’t want to file jointly with your spouse, your filing status will be “Married filing separately.” (See the second of the two tables below.) However most married couples choose to file their taxes jointly. Only single people should use the filing status above. If you have $9,500 in taxable income, the first $9,325 is subject to the 10% rate and the remaining $175 is subject to the tax rate of the next bracket (15%). For single filers, all income between $0 and $9,325 is subject to a 10% tax rate. With a marginal tax rate, you pay that rate only on the amount of your income that falls into a certain range. To understand how marginal rates work, consider the bottom tax rate of 10%. Instead, 39.6% is your top marginal tax rate. If you’re one of the lucky few to fall into the 39.6% bracket, that doesn’t mean that the entirety of your taxable income will be subject to a 39.6% tax. currently has seven federal income tax brackets, with rates of 10%, 15%, 25%, 28%, 33%, 35% and 39.6%. (If you’re preparing for next year, you can read this article for all of the details on the Trump tax plan and how it could impact you.) As you prepare to file your 2017 taxes, let’s take a look at the federal income tax brackets. While this new plan will result in some immediate changes to the tax code, it will not affect the way you file federal income taxes until the 2018 tax year, which you will file in early 2019. In December 2017, President Trump signed the new tax plan into law.
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