Tax season has arrived and has sent Americans flocking to tax-filing help sites and professional accountants to get the best returns possible. One thing many taxpayers might need when preparing their tax documents this year is a list of tax brackets for 2014. Below are the numbers and rates you’ll use to prepare your 2014 tax returns by April 15.
There are 69 days left until the deadline for filing federal and most state taxes. Most sates adhere to the April 15 cutoff date, but some have allowed extra time for filing. Delaware and Iowa allow taxes to be filed up to April 30; Virginia’s deadline is May 1.There are no state taxes in Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.
The federal government and most state and local governments impose taxes on taxpayers’ net taxable income. Tax rates at the federal level are graduated, meaning rates increase as incomes rise. A person’s taxable income is calculated by taking her gross income – the total amount of money made in a given year – and subtracting any tax deductions, including things like health care expenses, charitable donations and education. Tax rates can vary by tax year and differ depending on filing status – single or married, for instance. Tax brackets for 2014 were announced in October 2013. Tax brackets for 2015 would be used for filing taxes in 2016 – not this year.
Tax brackets are a handy tool when determining at what rate your taxable income will be taxed. Tax rates range from 10 percent for the lowest income earners to nearly 40 percent for the country’s highest earners.
For 2014, the tax rate for single filers making between $9,076 and $36,900 was 15 percent. That tax rate also applies to married taxpayers filing jointly making between $18,151 and $73,800.
The tax rate for single income earners who made between $36,901 and $89,350 was 25 percent. The same rate applies to married income earners filing jointly who made between $73,801 and $148,850.
When filing taxes, you’ll need several forms to get started. The first is a W-2 form, which lists earnings and withholdings for 2014. Those working as independent contractors or with other sources of income should also get a 1099 form. Workers should have received these forms from their employers by the end of January.