Q:

How do you read the U.S. federal income tax tables?

A:

Quick Answer

To read a federal income tax table, determine your filing status, calculate taxable income, determine your income bracket and identify the tax amount, notes Intuit TurboTax. Federal income tax tables change each year and are available in Publication 17 issued by the Internal Revenue Service.

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Full Answer

Common filing statuses include single and head of household, notes Intuit TurboTax. This determination impacts the amount available to take as a standard deduction. Next, a taxpayer needs to calculate taxable income, which considers revenue less all eligible expenses. The taxpayer must take into account any dependent exemptions.

The next step in reading a federal income tax table is to find the income bracket on the table that contains the related taxable income amount, notes Intuit TurboTax. For quick access to the federal income tax tables, a taxpayer can visit BankRate.com. Either tax rate or amount is listed in this particular bracket. When listed as a percentage, this figure is multiplied by the taxable income to arrive at the total tax due. Taxpayers can perform all of the calculations manually or use an online tax calculator, notes H&R Block. These calculators offer a basic questionnaire relating to filing status and income figures and then generate the total tax due.

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