In order to calculate which IRS tax bracket you are under, you will need to know the filing status of your return and how much of your income is taxable, notes efile.com. The various tax bracket information can be found at efile.com.Continue Reading
On efile.com, you can search tax bracket tables for 2014 and projected tax tables for 2015. In order to use the chart effectively, you will need to know your filing status, which can be either single, married filing jointly, married filing separately, widower, or head of household. Once you have determined your filing status, you can use the chart and find the column containing your taxable income. This tells you which bracket you fall into. Tax brackets indicate the highest rate any portion of your income will be taxed, notes efile.com.
For example, if you are married filing jointly with a combined taxable income of $75,000, you are in the 25 percent tax bracket, according to the efile.com tax bracket chart. This does not mean you will pay 25 percent on your total income, however. The IRS uses a tiered tax system where income is taxed at different rates. So if you are married filing jointly with $75,000 of combined taxable income, you would pay 10 percent tax on the first $18,150, 15 percent on the next $55,650, and 25 percent on the remaining $1,200. Your total tax liability would be $10,462, which is an effective tax rate of approximately 14 percent, even though you fall into the 25 percent tax bracket.Learn more about Income Tax