2011, 2012 Federal Income Tax Tables

2010 will be the last year for many tax breaks. Many tax breaks and stimulus plans expire at the end of this year. All taxpayers can expect to pay more in taxes for 2011. Find the new Federal Tax Tables here.

This will be difficult for most of us; we have all become accustomed to lower taxes during our economic hardship across the country.

Tax rates that were in effect before 2001 will return. The top income tax rate is scheduled to go back to 39.6 percent, and the special, low 10 percent bracket will be eliminated. Whether this will actually happen will be at the digression of Congress during 2010. If Congress allows the current plan, the following changes will go into effect:

We will see increases to the following tax rates:

Capital Gains Rates
Dividend Tax Rates
Estate Tax

We will see reductions in the following tax credits:

Child Tax Credit
Education Credit
Earned Income Tax Credit

And the following deductions are to be eliminated:

Mortgage Insurance Premiums – no longer available
College Savings Plans – no longer tax free
Payroll Tax Credit – no longer available

According to the IRS, the upcoming changes will cause the 2011 federal tax brackets to be considerably higher, looking something like this:

Federal Income Tax Brackets, Married - Single:

10% Bracket $0 - $8,500 / $17,000
15% Bracket $8,501 – $34,500 / $17,001 – $69,000
25% Bracket $$34,501 – $83,600 / $69,001 – $139,350
28% Bracket $83,601 – $174,400 / $139,351 – $212,300
33% Bracket $174,401 – $379,150 / $212,301 – $379, 150
35% Bracket Over $379,151

However, this could all change if Congress approves extensions or other changes for lower taxes.

For more information and answers to all your tax-related questions, visit TurboTax Online.