2011 Tax Information

President Obama and Congress have approved a extension for two years to all the Bush-era tax cuts. This means that the 2011 federal IRS tax rates will be the same as 2010 rates, shown in the table below. However tax bracket ranges and standard deduction levels have increased slightly due to inflation. A rise in tax rates would have cut the after-tax pay by $3,000 for the average tax payer, so the tax rates extension is worth a lot given current economic conditions. However, the extension is only for 2 years and unless the economy really tanks, don’t look for these to be extended again in 2013.

 

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