2010 Individual Income Tax Rates

Every year, the federal individual income tax rates adjust. While the adjustments are sometimes subtle, it is important that you understand any rate changes and how they will affect you.

Listed below are the 2010 individual income tax rates (as of July 2010), organized by federal filing status. It is good idea to learn about these tax rates now so that you can plan for the future.

Single (Rate Schedule X)
Taxable income between $0 and $8,375 ? 10% tax rate
Taxable income between $8,376 and $34,000 ? 15% tax rate
Taxable income between $34,001 and $82,400 ? 25% tax rate
Taxable income between $82,401 and $171,850 ? 28% tax rate
Taxable income between $171,851 and $373,650 ? 33% tax rate
Taxable income of $373,651 or more ? 35% tax rate

Married Filing Jointly or Qualifying Widow/er (Rate Schedule Y-1)
Taxable income between $0 and $16,750 ? 10% tax rate
Taxable income between $16,751 and $68,000 ? 15% tax rate
Taxable income between $68,001 and $137,300 ? 25% tax rate
Taxable income between $137,300 and $209,250 ? 28% tax rate
Taxable income between $209,251 and $373,650 ? 33% tax rate
Taxable income of $373,651 or more ? 35% tax rate

Married Filing Separately (Rate Schedule Y-2)
Taxable income between $0 and $8,375 ? 10% tax rate
Taxable income between $8,376 and $34,000 ? 15% tax rate
Taxable income between $34,001 and $68,650 ? 25% tax rate
Taxable income between $68,651 and $104,625 ? 28% tax rate
Taxable income between $104,626 and $186,825 ? 33% tax rate
Taxable income of $186,826 or more ? 35% tax rate

Head of Household (Rate Schedule Z)
Taxable income between $0 and $11,950 ? 10% tax rate
Taxable income between $11,951 and $45,550 ? 15% tax rate
Taxable income between $45,551 and $117,650 ? 25% tax rate
Taxable income between $117,651 and $190,550 ? 28% tax rate
Taxable income between $190,551 and $373,650 ? 33% tax rate
Taxable income of $373,651 or more ? 35% tax rate

Federal Tax Filing Statuses

To file an individual income tax return you must determine your filing status. It is essential that you consider all your filing options to ensure that you make the best decision. The filing status that you choose establishes your tax bracket and standard deduction, which eventually determines how much income tax you owe (or how much you will receive as a tax refund).

Here are some facts about federal income tax filing statuses:

‘ Your marital status on the last day of the tax year determines your filing status for the entire tax year. That means if you are legally married as of December 31, 2010, you must state your status as ‘married filing jointly’ or ‘married filing separately’ on your 2010 federal income tax return.

‘ There are many taxpayers who qualify for more than one filing status. If you are eligible for different filing statuses (such as ‘married filing jointly’ and ‘married filing separately’), you should choose the one that offers you the most tax benefits. For most couples, filing a joint return will result in lower income tax liability.

‘ To qualify for the ‘single’ filing status, you must be unmarried, legally separated, or divorced (as of the last day of the tax year).

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