Federal Tax Brackets

2010

The Federal tax brackets for 2011 are different from 2010.  If you are in the lowest federal tax bracket you will see a dramatic increase in the amount of income taxes witheld from your paycheck.

In 2010, you could make up to $6050 during the year and not pay any income taxes at all.  The amount witheld would have been $0.  Now, the Federal tax brackets 2011 indicate you can only make up to $2100 to avoid paying income taxes.  So, for those making between $2100 and $6050 annually, it’s time to get used to the idea of paying income tax. Any single person making roughly $2100 to $6050 has now moved up a Federal tax bracket.  Congratulations!

There are other changes in Federal tax brackets 2011 that may affect you as well.  For those single people making  $67,700 to $84,450 you have also moved a few percentage points in the 2011 Federal Tax brackets.  Only for you, the move is downwards and therefore a good move.  In 2010 you paid $12,193 plus 27% of your income towards federal income tax.  For 2011, it’ll be $4750 plus 25%.

As you move up the Federal tax brackets and compare 2010 to 2011, there are slight changes but nothing as dramatic as the changes described above.  For example, If you made $84,450 to $87,700 both years, your tax changes from roughly $16,716 plus 30% in 2010 to $17,025 plus 28% in 2011.  That’s roughly $1500 less overall.