| The income tax rates are important information | | | | back to 39.6 percent while the low bracket of 10 |
| that every person should be aware of as it would | | | | percent might be eliminated in future. |
| help them in filing their taxes appropriately. For the | | | | For the coming year 2011, the tax we pay might |
| year 2010, the income tax rates would remain | | | | see an increase in capital gains and dividend rates. |
| largely similar to the rates that were prevalent in | | | | The capital gains rate might go back to 20 |
| 2009. Going into 2010, the IRS announced that | | | | percent from 15 percent that was prevalent in |
| due to low inflation and slow economy the rates | | | | 2010, and your dividend income might be taxed |
| have not changed much. Keeping the consumer | | | | as your ordinary income so you must keep all |
| price index (CPI) in mind and the stagnated | | | | these points in mind to calculate your tax |
| growth, the IRS decided to keep the personal | | | | correctly in future. |
| exemption amount and the standard deduction | | | | The rates keep changing yearly and unless you |
| bracket similar to the 2009 tax rates. | | | | are well aware of the rates then you might |
| Understanding federal and state taxes isn't that | | | | suffer tremendously if you calculate your taxes |
| difficult if you understand the rates. Once you | | | | with the old tax rate. You should keep track of |
| know about the rates, then you can easily decide | | | | your previous year income and taxes to chalk out |
| which bracket applies in your case and thereby | | | | your future taxes correctly. You must also look |
| you can estimate your taxes on your own. The | | | | into child tax credit and the estate tax rates to |
| state income taxes generally range between 1% | | | | calculate your taxes correctly. |
| and 10%, and for every state there is a different | | | | Lastly, income tax rates can be checked online |
| rate. In some states there are also city income | | | | from any government site or you can also |
| taxes so you must be aware of that too. With | | | | download them for easy reference. You can |
| the start of 2011, it may be predicted that | | | | check on the rates table from any place, as long |
| President Obama might cut down the Bush rates | | | | as it is reliable and you must use the correct |
| and go back to the income tax rates prevalent in | | | | rates to calculate your income taxes. |
| 2001 to 2003. The top income tax rate might go | | | | |