The 2009 tax brackets are out. Don’t forget tax rates are marginal, so you’ll pay taxes at each rate until you reach your taxable income level.
For example, a single filer who has $25,000 of taxable income will pay 10% on the first $8,350 ($835) and 15% on the remaining $16,650 ($2,497.50). The total tax will be $3332.50, or an average tax rate of 13.3%.
2009 Tax Brackets
| Tax Rate |
Single |
Married Filing Joint |
Married Filing Separate |
Head of Household |
| 10% |
Up to $8,350 |
Up to $16,700 |
Up to $8,350 |
Up to $11,950 |
| 15% |
$8,351 – $33,950 |
$16,701 – $67,900 |
$8,351 – $33,950 |
$11,951 – $45,500 |
| 25% |
$33,951 – $82,250 |
$67,901 – $137,050 |
$33,951 – $68,525 |
$45,501 – $117,450 |
| 28% |
$82,251 – $171,550 |
$137,051 – $208,850 |
$68,526 – $104,425 |
$117,451 – $190,200 |
| 33% |
$171,551 – $372,950 |
$208,851 – $372,950 |
$104,426 – $186,475 |
$190,201 – $372,950 |
| 35% |
Over $372,950 |
Over $372,950 |
Over $186,475 |
Over $372,950 |
It’s important to note that the Make Working Pay Tax Credit will reduce some of the the tax due in the 10% tax bracket.
Posted April 28, 2009 in Taxes | Comments?
Happy Tax Day! Every year on April 15 there are plenty of last minute filers scrambling to get their taxes done. If you want to get your taxes done quickly, check out 6 Free E-File Options.
Tax Extensions
If you are in the same situation, but your return is not going to get done by the end of the day, be sure to file an extension.
Estimated Tax Payments
In addition to your 2008 return deadline today, if you are self employed, you must also make your first 2009 estimated tax payment.
For a complete listing of 2009 tax due dates, see the 2009 Tax Calendar.
Posted April 15, 2009 in Tax Filing | Comments?
Want to know how much you’ll be paying in taxes this year? Here are the 2008 tax rates.
Tax rates are marginal, so you’ll pay taxes at each rate until you reach your taxable income level.
For example, a single filer who has $25,000 of taxable income will pay 10% on the first $8,025 ($802.50) and 15% on the remaining $16,975 ($2,546). The total tax will be $3349, or an average tax rate of 13.4%.
2008 Tax Rates
| Tax Rate |
Single |
Married Filing Joint |
Married Filing Separate |
Head of Household |
| 10% |
Up to $8,025 |
Up to $16,050 |
Up to $8,025 |
Up to $11,450 |
| 15% |
$8,026 – $32,550 |
$16,051 – $65,100 |
$8,026 – $32,550 |
$11,451 – $43,650 |
| 25% |
$32,551 – $78,850 |
$65,101 – $131,450 |
$32,551 – $65,725 |
$43,651 – $112,650 |
| 28% |
$78,851 – $164,550 |
$131,451 – $200,300 |
$65,726 – $100,150 |
$112,651 – $182,400 |
| 33% |
$164,551 – $357,700 |
$200,301 – $357,700 |
$100,151 – $178,850 |
$182,401 – $357,700 |
| 35% |
Over $357,700 |
Over $357,700 |
Over $178,850 |
Over $357,700 |
Posted March 18, 2009 in Taxes | Comments?
If you purchased a new home in 2008 or plan to do so in 2009, you’ll want to know about the first time home buyer tax credits available.
2008 Home Purchases
Buyers can get a $7,500 First Time Home Buyer Tax Credit. The credit is 10% of the purchase price of your home, capped at $7,500. The credit is a 0% interest, 15 year loan from the government and it must be paid back beginning 2 years later.
2009 Home Purchases
Buyers can get a $8,000 First Time Home Buyer Tax Credit for 2009 home purchases. It applies to homes purchased between January 1, 2009 through November 30, 2009. The credit, which is refundable, is $8,000 or 10% of the home’s value, whichever is less.
You can file for either the 2008 or 2009 first time home buyer tax credit on your 2008 taxes using Form 5405.
Posted February 24, 2009 in Tax Deductions & Credits | Comments?
For 2009, the Traditional IRA and Roth IRA Limits remain unchanged from 2008.
IRA contributions can be made between January 2, 2009 and April 15, 2010 for the 2009 tax year.
2009 IRA Contribution Limits
| IRA |
Limit |
| Maximum |
$5,000 |
| Additional contribution for age 50 and over |
$1,000 |
In addition, contributions to IRAs can count toward the Saver’s Credit for Retirement Contributions.
Posted February 19, 2009 in Tax News | Comments?
