2012 Tax Brackets & Standard Deductions Changes
As you’re likely starting to put things together for your 2011 tax return, it’s never too early to start looking ahead to 2012 taxes.
One of the benefits of inflation (yes, its a silver lining) is that it can lower your tax liability. In the fall, the IRS announced inflation-adjusted tax bracket (aka tax tables) changes, and there was roughly a 3% increase in each bracket.
What are Tax Brackets or Tax Tables?
Tax brackets represent the income tax rate you owe for that portion of your income that falls into that bracket. In other words, only income that falls into that bracket is taxed at that rate. As an example with the 2011 tax brackets, if you are married and filing jointly, your tax rate on your first $17,000 of income is only 10%, income between $17,000 and $69,000 is taxed at 15%, and so on.
Many wrongly assume that if your total income peaks at the 28% tax bracket, for example, all of your income is taxed at that rate. Not true. Before we get to the 2012 tax bracket changes, here are some things to consider.
2012 Tax Planning
What this information can do is help you calculate how much of your income may fall into a higher bracket in the table and look for ways throughout the year to potentially bring it down through retirement contributions and other means.
Here are some examples of things you can do to lower your taxable income:
Donate to a 501(c)(3).- Make a 401K contribution.
- Get a home energy tax credit.
- Contribute to a traditional IRA. (Note, you can still do this for 2011 until the 2011 tax deadline in April.)
- Claim the child tax credit if you have a new child or dependent.
This may also be a good time to revisit what your overall adjusted gross income might be this year and adjust your tax allowances so that you don’t end up getting penalized for owing too much in taxes or getting too big of a refund (lending your money to the government, interest-free).
2012 Standard Deductions
Standard tax deductions will also lower your taxable income, if you don’t decide to itemize taxes. The 2012 standard deductions have also increased:
- $5,950 for single filers & married filing separately (up from $5,800)
- $11,900 for married filers (up from $11,600)
- $8,700 for head of household (up from $8,500)
- $950 for dependents (same as 2011)
And now, on to the tax bracket changes.
2012 Tax Brackets
2012 Tax Brackets for Singles:
10% – $0-$8,700 (up from $8,500)
15% – $8,700-$35,350 (up from $8,500-34,500)
25% – $35,350-$85,650 (up from $34,500-$83,600)
28% – $85,650-$178,650 (up from $83,600-$174,400)
33% – $178,650-$388,350 (up from $174,400-$379,150)
35% – $388,350+ (up from $379,150+)
2012 Tax Brackets for Married Filing Jointly:
10% – $0-$17,400 (up from $0-$17,000)
15% – $17,400-$70,700 (up from $17,000-$69,000)
25% – $70,700-$142,700 (up from $69,000-$139,350)
28% – $142,700-$217,450 (up from $139,350-$212,300)
33% – $217,450-$388,350 (up from $212,300-$379,150)
35% – $388,350+ (up from $379,150+)
2012 Tax Brackets for Married Filing Separately:
10% – $0-$8,700 (up from $0-$8,500)
15% – $8,700-$35,350 (up from $8,500-$34,500)
25% – $35,350-$71,350 (up from $34,500-$69,675)
28% – $71,350-$108,725 (up from $69,675-$106,500)
33% – $108,725-$194,175 (up from $106,500-$189,575)
35% – $194,175+ (up from $189,575+)
2012 Tax Brackets for Head Of Household:
10% – $0-$12,400 (up from $0-$12,150)
15% – $12,400-$47,350 (up from $12,150-$46,250)
25% – $47,350-$122,300 (up from $46,250-$119,400)
28% – $122,300-$198,050 (up from $119,400-$193,350)
33% – $198,050-$388,350 (up from $193,350-$379,150)
35% – $388,350+ (up from $379,150+)
Tax Bracket Discussion:
- Which tax bracket will you top out in for 2011?
- What do you think about the 2012 tax rate changes?
I am G.E. Miller, & 
I’m starting to put my taxes together now and looking for ways to reduce earned income. Good thing I can contribute to an IRA until April.
We will be in the 28% tax bracket in 2011. I’m happy because we are skating close to the edge and the 2012 changes will keep us in the same tax bracket.
Hi Julie – keep in mind, you only pay 28% on the amount over that bracket, so if it’s only a few hundred or thousands, it should not have a big impact.
Any tips for those who must file married jointly for state but as singles for federal?
If it is because your state recognizes same-sex marriage, contrary to Federal law, my advice would be to repent because it is also against Biblical law.
Sorry but there is no biblical that states against same sex marriage. And if you value separation of church and state, then same sex marriage should be supported.
Hello friend,
Because one values separation of church and state, he is not required to support same sex marriage. Such support should be left to those who have no moral reason to reject it. No law requires personal approval of same sex marriage. The Bible scriptures do contain numerous warnings to those engaged in that lifestyle, as it pertains to God’s moral standards. These are given to us to help us avoid problems in our personal lives here on earth and to help us to lead a life that is pleasing to God. If you are a Christian, God’s warning against a sexual relationship with a same sex partner are very clear. If you are not a Christian, these are not important to you, as pleasing God is of no consequence to you. If you want to know what God has warned about homosexuality, here are a few of his warnings. As I have stated however, these are not laws in the way we define laws in this day, but the laws of this day were initially based upon Mosaic Law…Given by God to Moses. We seem to have changed many of them however, to accommodate our personal views and have simply left God out of the picture. As Christians, we should know that God’s laws arwere given to help us…not to hurt us. Sincerely
Leviticus 18:22 (KJV)
22 Thou shalt not lie with mankind, as with womankind: it is abomination.
Leviticus 20:13 (KJV)
13 If a man also lie with mankind, as he lieth with a woman, both of them have committed an abomination: they shall surely be put to death; their blood shall be upon them.
Deuteronomy 22:5 (KJV)
5 The woman shall not wear that which pertaineth unto a man, neither shall a man put on a woman’s garment: for all that do so are abomination unto the LORD thy God.
1 Corinthians 6:9 (KJV)
9 Know ye not that the unrighteous shall not inherit the kingdom of God? Be not deceived: neither fornicators, nor idolaters, nor adulterers, nor effeminate, nor abusers of themselves with mankind,
Romans 1:24 (KJV)
24 Wherefore God also gave them up to uncleanness through the lusts of their own hearts, to dishonour their own bodies between themselves:
Romans 1:26 (KJV)
26 For this cause God gave them up unto vile affections: for even their women did change the natural use into that which is against nature:
Romans 1:27 (KJV)
27 And likewise also the men, leaving the natural use of the woman, burned in their lust one toward another; men with men working that which is unseemly, and receiving in themselves that recompence of their error which was meet.
Hi there,
I claimed single but put down 3 for allowances or dependents, i am not sure what is the difference actually. Anyway i made roughly 38-40k and i am worried i will have to owe? i need some expert advise. Has someone ever been in my shoes and what will happen? i also didnt claim 3 the entire year just half. the first half was a 1. Does that make a difference?