how do I know what federal tax bracket i fall under?

Answer 1

You only pay taxes on your adjusted gross income minus deductions and credits, in other words, your Net Taxable Income.

You will be in a different federal tax bracket if you are filing single, or married filing jointly, or qualifying widow/widower, or married filing separately, or filing as head of household. The tax bracket also changes depending on how much net taxable income you are reporting (line 43, form1040).

Federal Tax Brackets are 10%, 15%, 25%, 28%, 33%, and 35% but, these percentages don't accurately portray the amount of tax due. For each tax bracket, depending on your filing status, the bracket has a correction amount.

For example, someone filing Single, with a net taxable income of $6,000 would fall into the 10% tax bracket and owe 10% in tax. This equals $600 in tax. Looking up $6,000--$6,050 net taxable income in the tax tables, IRS Publication 17, shows a tax obligation of $603.

Another example, Someone filing Single, with net taxable income of $60,000 would be in the 25% tax bracket, but owe 25% of $60,000 minus $3,335. That equals $11,665 in tax. If you check the tax tables, starting on page 250 of IRS Publication 17, you will see a net taxable income $60,000--$60,050 shows a tax liability of $11,671.

The percentages and subtraction numbers are different depending upon your specific situation (your filing status and your level of net taxable income.) Most people just use the tax tables and look up their net taxable income in the tables to find the tax they owe.

Here's another way to compute the tax owed using the federal tax brackets:
http://www.irs.gov/formspubs/article/0,,id=150856,00.html

The real problem finding your federal tax bracket is accurately determining your net taxable income. The only way to do that is to complete a tax return and see how the numbers turnout. Someone could have a high gross income but exemptions, deductions, and credits bring their net taxable income to zero. In fact, some credits are refundable even if the taxpayer has no tax liability.

Answer 2

Haven't you ever filed taxes before?
Even before that your paystub lets you know the amount of Federal tax, FICA tax, and state tax (if any) taken out. By dividing your gross income INTO just your federal tax, (larger number into the smaller - use a calculator) you will get a rough idea of the tax bracket you're paying taxes at At actual filing time you look at the tables provided, find your gross amount of income, take your deductions, (long or short form) and the resulting gross amount will tell you what true tax bracket you are in.
As an example; people who are on the 'cusp' of a higher tax bracket will then employ a technique of writing off every expense they had the previous year in order to attain the lower tax bracket and have to pay LESS taxes, saving them money.
AYAFIOW

Answer 3

look at where your taxable income falls in the tax tables published by the IRS.