IRS Tax Tables Reflect Tax Debt based on Taxable Income received. The tax rate in the table is shown as a percentage rate of taxable income.

There are seven IRS Tax Tables brackets for most ordinary income: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. The U.S. has a progressive tax system, which means that as you move up the pay scale, you also move up the tax scale.

Your IRS Tax Tables bracket depends on your taxable income and your filing status: single, married filing jointly or qualifying widow(er), married filing separately, and head of household. The deadline to file taxes is April 15, unless that date falls on a weekend or holiday or you get an extension. However, as part of the government’s relief efforts for those impacted by a coronavirus, the tax-filing deadline has been extended to July 15.

Taxes are estimated to increase in 2021. Below is a comparison of 2020 to proposed 2021 tax rates. Consult with your accountant to determine if you should be accelerating income into 2020.

How to get into a lower IRS Tax Tables bracket

There are basically two ways to get into a lower tax bracket: tax credits and tax deductions.

Tax credits are a dollar-for-dollar reduction in your income tax bill. If you have a $2,000 tax bill but are eligible for $500 in tax credits, your bill drops to $1,500.

Tax credits can save you more in taxes than deductions. There are tax credits for a variety of things. The federal government gives tax credits for the cost of buying solar panels for your house and to offset the cost of adopting a child. There are education tax credits and tax credits for the cost of child care and dependent care, to name a few. Many states also offer tax credits.

IRS Tax Tables movements help, while tax credits reduce your actual tax bill, tax deductions reduce the amount of your income that is taxable. If you have enough deductions to exceed the standard deduction for your filing status, you can itemize those expenses to lower your taxable income. For example, if your medical expenses exceeded 7.5 percent of your adjusted gross income in 2019, you can claim those and lower your taxable income.

Projected IRS Tax Tables penalty amounts:

Failure to file personal and business tax returns
Failure to pay tax
Failure to file correct information returns
Failure to furnish correct payee statements
Revocation of passports for seriously delinquent tax debts
Projected retirement planning figures:

Income limits for Roth IRA contribution eligibility

Deduction limits for qualified retirement savings contributions
Hundreds of other amounts necessary to calculate clients’ taxes:

Standard deduction amounts

IRS Tax Tables thresholds for application of wage-basis limit in calculating qualified business income deduction
AMT thresholds
Annual estate tax exemption amount
Annual gift tax exclusion amount
Education credit amounts
Deduction limits for health and medical savings accounts