Well, it is that time of the year again. Consumers throughout the United States will head to their local tax offices and begin submitting their tax documentation to the IRS. For some consumers, this will prove to be fruitful, since they’ll be able to obtain a substantial refund. Others will be unfortunate and may very well be required to pay in to the government. In order to figure out precisely where you fall on this spectrum, it is essential to familiarize yourself with the 2016 IRS Tax Brackets. By reading this guide, you will be able to do just that.
When it comes down to it, you should know that the differentials are widespread and very diverse. Each individual taxpayer could fall within a handful of different brackets, depending on their current status and their income amount. Both factors will help to determine precisely how much you’ll pay or get back. These factors will be explored in greater depth below.
When completing your taxes, you will need to confirm your filing status. This will depend on your martial status and will play a major role on which bracket you fall in. The four individualistic filing statuses will be examined in greater depth below.
Single – As the title suggests, those that are currently single and not married will be designated as single non-joint filers. Filing with this status designation will usually result in the most substantial individual income tax.
Married Filing Jointly – Although married individuals are not always required to file jointly, it is sometimes advantageous to do so. For those that fit within this category, the first 3 brackets will be doubled. At the same time, the top four brackets are elevated, but not necessarily doubled.
Head Of Household – If you’re a single individual, yet support other members of your family, you may very well fall within the Head of Household category. Individuals that meet these qualifications will receive a more generous return, when compared to those with a single status. However, the brackets for joint filers are still wider.
Married Filing Separately – Married individuals have the option of filing together or separately. This classification is rarely used, since it’ll usually result in both paying additional taxes, when compared to filing jointly.
Once you’ve figured out precisely which filing status best suits your individualistic situation, you will need to begin looking at your income for the year. Remember that your adjusted gross income will prove to be immensely impactful, when it comes to the 2016 IRS Tax Brackets and which you fall within. Also, you must account for any tax deductions, which apply directly to you. Amongst these deductions, you will find business expenses and dependent exemptions. Each of these could have an impact on the final amount of the refund.
Check The Brackets
Once you’ve analyzed your unique filing status and your income, you should take a glance at the tax brackets. By examining this information and comparing it to your own individualistic situation, you will be able to figure out precisely what percentage you’ll be expected to pay. Regardless of your filing status, the percentage can range from 10 to 39.6%.