2010 Tax rates:
Below are the resulting tax rates and income ranges for 2010:
Choose your filing status. Your filing status determines the income levels for your federal tax bracket. It is also important for calculating your standard deduction, personal exemptions, and deduction phase out incomes. The table below summarizes the five possible filing status choices. It is important to understand that your marital status as of the last day of the year determines your filing status.
A dependent is someone you support and for whom you can claim a dependency exemption. In 2010, each dependent you claim entitles you to receive a $3,650 reduction in your taxable income (see exemptions below). In 2010, each dependent under the age of 17 also receives a tax credit of $1000. The credit is, however, phased out for at higher incomes.
Total exemptions claimed
Each exemption you claim reduces your taxable income by $3,650 for 2010. You receive an exemption for yourself, your spouse and one for each of your dependents.
Capital Gain or Loss
This is the total capital gain you realized from the sale of assets. This calculator allows you to enter your total short-term capital gain for investments held less than one year and your total long-term gain for investments held at least one year. Any amount you enter as a short-term capital gain is taxed as normal income. Any amount you enter as a long-term capital gain is taxed as follows:
· This calculator assumes that all of your long-term capital gains are taxed at either 0% or 15%.
· The tax is 0% for the portion of your gain that would have been taxed at 15% or lower tax if it were a short-term gain.
· The tax is 15% for any of your capital gain that would have been taxed at a rate higher than 15% if it were considered a short-term gain.
· This calculator assumes that none of your long-term capital gains come from collectibles, section 1202 gains or un-recaptured 1250 gains. These types of capital gains are taxed at 28%, 28% and 25% respectively (unless your ordinary income tax bracket is a lower rate).
For more information on capital gains tax rates and how they are applied, you may wish to read IRS Publication 17: Your Federal Income Taxes.
Business income or loss from Schedule C
Any income or loss as reported on Schedule C.
Rental real estate, royalties, partnerships, S Corporations, trusts, etc.
Total income calculated by adding lines 7 through 21 on your form 1040. For most taxpayers this includes wages, salaries, tips, interest, dividends and gains and losses from a variety of activities.
Adjusted gross income
Adjusted gross income (AGI) is calculated by subtracting all deductions from lines 23 through 33 from your total income. AGI is used to calculate many of the qualifying amounts if you itemized your deductions.
Your total taxable income is your AGI minus your itemized or standard deduction, and your deduction for exemptions.
This is the total federal income tax you owe for 2010 before any tax credits.
Your total tax credits. This amount is subtracted from the total tax amount.
Total tax after credits
This is the total federal income tax you will need to pay in 2010.
Total other taxes
Any other taxes that you owe for 2010. This includes self-employment tax, alternative minimum tax, and household employment taxes.
Grand total of your 2010 federal tax bill.
Total of all tax payments made in 2010. This includes tax withheld from Forms W-2 and 1099, and estimated taxes paid, earned income credit and excess social security tax withheld.