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William Perez

Tax Brackets Updated for 2014

By November 12, 2013

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The IRS released the tax rates for 2014. Each of the tax brackets were adjusted for inflation. The following chart shows the marginal tax rate that applies to each bracket of taxable income. In the rightmost column is the corresponding tax rate that applies to qualified dividends and long-term capital gains.

 

 

 

 

Tax Rate on Ordinary Income

Single

Tax Rate on Qualifying Dividends and Long Term Capital Gains

over

to

10%

0

9,075

0%

15%

9,075

36,900

0%

25%

36,900

89,350

15%

28%

89,350

186,350

15%

33%

186,350

405,100

15%

35%

405,100

406,750

15%

39.6%

406,750

--

20%

 

Married Filing Jointly /

Qualifying Widow or Widower

 

 

over

to

 

10%

0

18,150

0%

15%

18,150

73,800

0%

25%

73,800

148,850

15%

28%

148,850

226,850

15%

33%

226,850

405,100

15%

35%

405,100

457,600

15%

39.6%

457,600

--

20%

 

Married Filing Separately

 

 

over

to

 

10%

0

9,075

0%

15%

9,075

36,900

0%

25%

36,900

74,425

15%

28%

74,425

113,425

15%

33%

113,425

202,550

15%

35%

202,550

228,800

15%

39.6%

228,800

--

20%

 

Head of Household

 

 

over

to

 

10%

0

12,950

0%

15%

12,950

49,400

0%

25%

49,400

127,550

15%

28%

127,550

206,600

15%

33%

206,600

405,100

15%

35%

405,100

432,200

15%

39.6%

432,200

--

20%

In addition to these income tax rates, some taxpayers may find that one or more surtaxes applies.

A 3.8% net investment income surtax applies if adjusted gross income (with some modifications) exceeds certain thresholds.

Net Investment Income Tax Thresholds

Filing status

Modified Adjusted Gross Income

Married Filing Jointly or Qualifying Widow(er)

$250,000

Single or Head of Household

$200,000

Married Filing Separately

$125,000

And an additional Medicare surtax of 0.9% on wages or net-self employment income above certain thresholds.

Additional Medicare Tax Thresholds

Filing status

Medicare Wages and/or Self-Employed Income in Excess of

Married Filing Jointly

$250,000

Single or Head of Household or Qualifying Widow(er)

$200,000

Married Filing Separately

$125,000

 

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