2012 Tax Tables

The IRS tax tables for 2012, for use in filing 2012 taxes by April 2013, will be published in the fall of 2012.

2012 Tax Tables graphicHowever, the estimated tax withholding tables give an accurate assessment of how the 2012 tax tables from the IRS will look. Note that these 2012 tax bracket tables are no to be used for calculating your 2011 taxes that you file before April 2012, but rather for the tax year from January 2012 to December 2012. Those taxes will be filed in 2013, but estimated tax payments calculated throughout the 2012 year should use these IRS tables.

The 2012 standard deduction amount is the same.

2012 Estimated Tax Tables

If your 2012 filing status will be Single then your tax rate for estimated payments is:

  • Income under $8,700 = 10%
  • Income over $8,700 but under $35,350 = $870 + 15% of amount over $8,700
  • Income over $35,350 but under $86,650 = $4,867.50 + 25% of amount over $35,350
  • Income over $86,650 but under $178,650 = $17,442.50 + 28% of amount over $85,650
  • Income over $178,650 but under $388,350 = $43,482.50 + 33% of amount over $178,650
  • Income over $388,350 = $112,638.50 + 35% of amount over $388,350

If your 2012 filing status will be Married Filing Jointly then your tax rate for estimated payments is:

  • Income under $17,400= 10%
  • Income over $17,400 but under $70,700 = $1,740 + 15% of amount over $8,700
  • Income over $70,700 but under $142,700 = $9,735 + 25% of amount over $35,350
  • Income over $142,700 but under $217,450 = $27,735 + 28% of amount over $85,650
  • Income over $217,450 but under $388,350 = $48,665 + 33% of amount over $178,650
  • Income over $388,350 = $105,062 + 35% of amount over $388,350

Remember that whenever you are required to make estimated tax payments there is a general rule provision that you can use instead of calculating your estimated payments with the EST tax tables. The IRS decrees that if you pay 100 percent of the amount of taxes you paid the previous year, then you will not be subject to underwithholding penalties.

However, this does not mean that you will not owe taxes. Your tax rate will still be calculated based upon your actual income for the year. What it does mean is that you can make smaller quarterly estimated tax payments without being penalized for underpayment. You do need to be sure that you will be able to make your tax payment the following spring when you file your taxes, or you may be subject to interest and penalties at that point.

For higher incomes, those with an adjusted gross income (AGI) above 150,000, the general rule requires that your estimated tax payments equal 110 percent of your previous year’s taxes to avoid paying an under withholding penalty.

Other 2012 tax tips and advice is available here on Finance Gourmet.

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