Tax Brackets And Standard Deductions In The Year 2014

According to recent reports, the IRS or the
Internal Revenue Service has recently declared its yearly adjustments to
inflation for more than 40 tax provisions. These include tax tables, tax rate
schedules, and adjustments to cost of living for a few specific tax items. The
numbers are applicable for the tax year 2014 and hence they don’t apply to the
rates and numbers that you will use to prepare your 2013 tax returns in 2014.
You must be wondering about your own tax
bracket! Well, since the changes are almost negligible, most taxpayers are most
likely to stay within the same bracket that they were in 2014. But if you want
to be sure about where you fall, you can read on the concerns of this article.
The
tax rates applicable to ordinary income
The tax rates that are mentioned below are
applicable to ordinary income or most types of income. On the other hand, there
are some special rates for specific categories of income like gains on
qualified dividends and long term capital gains. The tax rates are applicable
to a particular range of income that is known as the tax bracket.
Taxpayers
who file single [Tax Rate Schedule X, IRC Section 1(c)]
For all those who file with their single
status, their tax rates are:
  • 10% on their taxable income from $0 – $9075 and above
  • 15% on their taxable income from $9075 – $36,900 and above
  • 25% on their taxable income from $36,99 – $89,350 and above
  • 28% on their taxable income from $89,350 – $186,350 and above
  • 33% on their taxable income from $186,350 – $405,100 and above
  • 35% on their taxable income from $405,100 – $406,750 and above
  • 39.6% on their taxable income that is above $405,100.
Taxpayers
who are married but file separately [Tax Rate Schedule Y-2, IRC Section1 (d)]
For all those who are married but file
separately, here are their tax rates.
  • 10% on their taxable income from $0 – $9075 and above
  • 15% on their taxable income from $9075 – $36,900 and above
  • 25% on their taxable income from $36,900 – $74,425 and above
  • 28% on their taxable income from $74,425 – $113,425 and above
  • 33% on their taxable income from $113,425 – $202,550 and above
  • 35% on their taxable income from $202,550 – $228,800 and above
  • 39.6% on their taxable income above $228,800 and above

Apart from the federal income taxes on ordinary
and specific income, there are also some other taxes that might be applicable
on personal income. There’s a provision of Social Security Tax at a whopping
rate of 12.4% on self-employment income and wages up to the yearly Social
Security wage base of $117,000. Apart from that, there is Medicare Tax at a
rate of 2.9% on self-employment income and wages. Net investment income tax at
a rate of 3.8% is applicable on net investment income or adjusted gross income.
Hence, if you’re a taxpayer who will prepare your 2014 returns in 2015, you
have to take into account the above mentioned tax rates and tax brackets.

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