2009 Federal Income Tax Brackets

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Though for many people, the 2008 tax season just started, it’s never too early to plan ahead for what will happen next year. Part of the planning is to know your tax rate for 2009, so you can adjust your tax strategies for the new year accordingly.

At the end of 2008, the IRS published its 2009 marginal tax brackets. Comparing to 2008 tax brackets, we saw increases in all taxable income ranges, thanks to the inflation, because the federal taxable income levels are inflation adjusted each year, as shown in the following tables. Remember that these are marginal tax rates, which means, based on your income level, you pay a basis tax plus tax for income exceeding the floor of your income range. For example, if you earn $80,000 taxable income (married couple filing jointly) in 2009, your federal tax will equal to

Federal income tax = $9,350 + 25% * ($80,000 – $67,900) = $12,375

Also, the income is taxable income, which is your gross income minus deductions, exemptions and all other applicable adjustments.

Married Individuals Filing Joint Returns and Surviving Spouses

Taxable Income 2009 Tax Rate
Not over $16,700 10% of the taxable income
Over $16,700 but not over $67,900 $1,670 plus 15% of the excess over $16,700
Over $67,900 but not over $137,050 $9,350 plus 25% of the excess over $67,900
Over $137,050 but not over $208,850 $26,637.50 plus 28% of the excess over $137,050
Over $208,850 but not over $372,950 $46,741.50 plus 33% of the excess over $208,850
Over $372,950 $100,894.50 plus 35% of the excess over $372,950

Heads of Households

Taxable Income 2009 Tax Rate
Not over $11,950 10% of the taxable income
Over $11,950 but not over $45,500 $1,195 plus 15% of the excess over $11,950
Over $45,500 but not over $117,450 $6,227.50 plus 25% of the excess over $45,500
Over $117,450 but not over $190,200 $24,215 plus 28% of the excess over $117,450
Over $190,200 but not over $372,950 $44,585 plus 33% of the excess over $190,200
Over $372,950 $104,892.50 plus 35% of the excess over $372,950

Unmarried Individuals

Taxable Income 2009 Tax Rate
Not over $8,350 10% of the taxable income
Over $8,350 but not over $33,950 $835 plus 15% of the excess over $8,350
Over $33,950 but not over $82,250 $4,675 plus 25% of the excess over $33,950
Over $82,250 but not over $171,550 $16,750 plus 28% of the excess over $82,250
Over $171,550 but not over $372,950 $41,754 plus 33% of the excess over $171,550
Over $372,950 $108,216 plus 35% of the excess over $372,950

Married Individuals Filing Separate Returns

Taxable Income 2009 Tax Rate
Not over $8,350 10% of the taxable income
Over $8,350 but not over $33,950 $835 plus 15% of the excess over $8,350
Over $33,950 but not over $68,525 $4,675 plus 25% of the excess over $33,950
Over $68,525 but not over $104,425 $13,318.75 plus 28% of the excess over $68,525
Over $104,425 but not over $186,475 $23,379.75 plus 33% of the excess over $104,425
Over $186,475 $50,447.25 plus 35% of the excess over $186,475

In addition, the IRS also adjusted standard deduction for 2009 tax year. Depending on the filing status, the 2009 standard deductions are as follows:

Filing Status 2009 Standard Deduction
Married Individuals Filing Joint Returns and Surviving Spouses $11,400
Heads of Households $8,350
Unmarried Individuals $5,700
Married Individuals Filing Separate Returns $5,700

Comparing to 2008, the standard deductions also  increased across the board. For instance, for married couple filing joint returns, the standard deduction increased by $500 from $10,900 for 2008 to $11,400 for 2009.

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