What is My Tax Bracket? 2012 Tax Rates

Lately there has been a quite a bit of conversation at the national level concerning the raising and lowering of income tax rates.  As such, it may be helpful to understand how  tax brackets work and what they are the 2012 tax year.  So what is a tax bracket?2012 Tax Brackets

Short answer: It is the rate at which the last dollar of taxable income is taxed in any given year. For most people, the first dollar you earn at the beginning of the year is taxed lower than the last dollar you earn at the end of the year. The brackets determine how much of each dollar is taxed a particular rate. For example, the first $5,000 you earn in a year could be taxed at let’s say – 10% (10% bracket), the next $10,000 at 15% (15% bracket), and so on. Note that the no amount gets taxed at more than one rate. Click here to view the 2012 marginal tax brackets.

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2012 Federal Income Tax Rates

2012 North Carolina Income Tax Rates

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Standard Deductions vs. Itemized Deductions: Which Deduction Is Better For Tax Returns?

Simply Taxes, LLC is a local year-round tax preparation firm with an office located in North Raleigh. Our Raleigh accountants are ready to work one-on-one with you to help maximize your refund opportunity and to provide other tax services in the professional manner you deserve.

The information contained within this article is for general guidance only. As such, it should not be used as a substitute for consulting with professional accounting, tax, legal or other competent advisers.

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