What tax bracket am I in.?

Question

What numbers on my tax returns can help me figure out what my tax bracket is?

http://www.irs.gov/formspubs/article/0,,id=150856,00.html

shows that I would be in the 25% backet, but according to my calculations. (total tax state +total tax federal) / ajusted gross income. I only paid about 12%

Answer 1

Your tax bracket is the rate that you last dollar of taxable income is taxed at. When you divide your gross income by your total tax liability that will give you your NET tax rate. They will always be different.

The first dollar of taxable income is taxed at 10%, even if you earn millions. The tax rate of your last dollar depends upon your total taxable income but will go no higher than 35% for your Federal taxes.

Answer 2

Look at your taxable income, then at the tax rate schedules for your income.

25% bracket doesn't mean that you pay 25% on everything you make. The tax rate schedules will show that also. The first so many dollars is not taxed (exemptions, deductions, adjustments), then a number of dollars is taxed at 10%, then 15%, then 25%....

The number of dollars taxed at each rate depends on your filing status.

Answer 3

you answer your only question =- within your question you have two figures gross income and adjusted income. yes the gross may be 25% but when you take out all the crumb snatchers it drops like rain water.

Answer 4

you forgot to figure deductions/exemptions which reduce your EFFECTIVE tax rate.