American Tax Service

Helping Americans File Their Taxes

Aug
5

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Current Federal Income Tax Brackets Chart

Category: Tax Tags: , , , , , , , ,

Every year, the Federal tax brackets chart tends to change. With the new changes to the tax code, under the Tax Cuts and Jobs Act (TCJA), it’s more important than ever to determine which Federal tax bracket you fall into. It could influence how much you pay by thousands of dollars.

Learn what the current Federal tax brackets are and how they work.

IRS Federal Income Brackets Chart

Here are the new tax brackets and rates organized by filing status:

Tax Brackets Single

Taxable Income Tax Rate
$0 – $9,875 10% of taxable income
$9,876 – $40,125 $987.50 + 12% of the amount over $9,875
$40,126 – $85,525 $4,617.50 + 22% of the amount over $40,125
$85,526 – $163,300 $14,605.50 + 24% of the amount over $85,525
$163,301 – $207,350 $33,271.50 + 32% of the amount over $163,300
$207,351 – $518,400 $47,367.50 + 35% of the amount over $207,350
$207,351 – $518,400 $156,235 + 37% of the amount over $518,400

 

Tax Brackets Married Filing Jointly or Qualifying Widow(er)

Taxable Income Tax Rate
$0 – $19,750 10% of taxable income
$19,751 – $80,250 $1,975 + 12% of the amount over $19,750
$80,251 – $171,050 $9,235 + 22% of the amount over $80,250
$171,051 – $326,600 $29,211 + 24% of the amount over $171,050
$326,601 – $414,700 $66,543 + 32% of the amount over $326,600
$414,701 – $622,050 $94,735 + 35% of the amount over $414,700
$622,051 or more $167,307.50 + 37% of the amount over $622,050

 

Tax Brackets Married Filing Separately

Taxable Income Tax Rate
$0 – $9,875 10% of taxable income
$9,876 – $40,125 $987.50 + 12% of the amount over $9,875
$40,126 – $85,525 $4,617.50 + 22% of the amount over $40,125
$85,526 – $163,300 $14,605.50 + 24% of the amount over $85,525
$163,301 – $207,350 $33,271.50 + 32% of the amount of $163,300
$207,351 – $311,025 $83,653.75 + 37% of the amount over $311,025
$311,026 or more $83,653.75 + 37% of the amount over $311,025

 

Head of Household

Taxable Income Tax Rate
$0 – $14,100 10% of taxable income
$14,101 – $53,700 $1,410 + 12% of the amount over $14,100
$53,701 – $85,500 $6,162 + 22% of the amount over $53,700
$85,501 – $163,300 $13,158 + 24% of the amount over $85,500
$163,301 – $207,350 $31,830 + 32% of the amount over $163,300
$207,351 – $518,400 $45,926 + 35% of the amount over $207,350
$518,401 or more $154,793.50 + 37% of the amount over $518,400

Try the tax bracket calculator and see what your tax bracket will be.Try the Free Tax Brackets Calculator

Knowing which tax bracket you are in can help you make better financial decisions.… Read the rest

Aug
5

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Earned Income Tax Credit & Credit Table

Category: Credits Tags: , , , , , , , , , ,

Although an incredible number of families currently claim this valuable tax break, the IRS says many more qualify for this refundable tax credit yet neglect to take advantage of it.

Check out the earned income credit table and see how much you qualify for.

The guidelines for (EIC) Earned Income Credit Table were recently increased; therefore, many more families meet the requirements and can claim the earned income credit. Take a couple of minutes to ensure you don’t pass up a credit that might provide you with a bigger refund check.

How Much are the EIC, Earned Income Credit Table Amounts for 2020, 2021?

… Read the rest

Aug
5

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Who Can Qualify for The Earned Income Credit?

Category: Credits Tags: , , , , , , , , ,

The Earned Income Tax Credit (or “EITC” for short) is an excellent option for low-income families and individual filers to utilize for a larger return and overall cash back from the government when you file your taxes. While fairly straight-forward to understand, many tax filers do no understand how the EITC works, and if they qualify. It’s estimated that nearly 1/5 qualified applicants don’t use the credit.

who can qualify for the earned income credit?

This article will help you understand the basics of the earned income credit, and will also help you determine if you can claim the Earned Income Credit and if you qualify.… Read the rest

Aug
5

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What is EIC/EITC and Who Qualifies?

Category: Credits Tags: , , , , , , ,

The EIC/EITC is known as the Earned Income Tax Credit. This tax credit is available for those who have a low or moderate-income.

EIC, Earned Income Tax CreditThe amount that you receive for this credit is determined based on the filing status you use and your salary for the year.

Those who qualify pay less in federal taxes and can claim the earned income credit when they file their tax returns.

Basic Requirements to Be Eligible

  • You have to have a qualifying child, and they must have a social security number
  • You cannot file married or file separately
  • Your investment income should be no higher than $3,600
  • You have to be a U.S.
… Read the rest