Yearly Tax Rates

2009 Federal Income Tax Brackets

Income Tax Rate	Single		Married Filing Jointly / Qualifying Widower		Married Filing Separately		Head of Household		LTCG/ QD*
	over	up to	over	up to	over	up to	over	up to	Rate
10%	0	8,350	0	16,700	0	8,350	0	11,950	0%
15%	8,350	33,950	16,700	67,900	8,350	33,950	11,950	45,500	0%
25%	33,950	82,250	67,900	137,050	33,950	68,525	45,500	117,450	15%
28%	82,250	171,550	137,050	208,850	68,525	104,425	117,450	190,200	15%
33%	171,550	372,950	208,850	372,950	104,425	186,475	190,200	372,950	15%
35%	372,950		372,950		186,475		372,950		15%

* Long-Term Capital Gains and Qualified Dividend

2008 Federal Income Tax Brackets

The previous year’s numbers are also provided to give you an idea of some of the changes.

Income Tax Rate	Single		Married Filing Jointly / Qualifying Widower		Married Filing Separately		Head of Household		LTCG/ QD*
	over	up to	over	up to	over	up to	over	up to	Rate
10%	0	8,025	0	16,050	0	8,025	0	11,450	0%
15%	8,025	32,550	16,050	65,100	8,025	32,550	11,450	43,650	0%
25%	32,550	78,850	65,100	131,450	32,550	65,725	43,650	112,650	15%
28%	78,850	164,550	131,450	200,300	65,725	100,150	112,650	182,400	15%
33%	164,550	357,700	200,300	357,700	100,150	178,850	182,400	357,700	15%
35%	357,700		357,700		178,850		357,700		15%

* Long-Term Capital Gains and Qualified Dividend

Changes in Federal Income Tax Rate for 2009

The marginal tax rates are pegged to inflation and numbers are annually revised. Thus you will note that there are quite a few changes for the 2009 tax year compared to the year before. To summarize, here are some of the more notable tax rate changes for 2009 and even a quick blurb about some of the key tax benefits that did not change based on official IRS releases thus far:

Tax-bracket thresholds: Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $67,900, up from $65,100 in 2008.
Personal and dependency exemption: The value of each personal and dependency exemption, available to most taxpayers, is $3,650 (up $150 from 2008).
Standard deduction: The new standard deduction is $11,400 for married couples filing a joint return (up $500), $5,700 for singles and married individuals filing separately (up $250) and $8,350 for heads of household (up $350). Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes.
Earned income tax credit: The maximum earned income tax credit for low and moderate income workers and working families with two or more children is $5,028, up from $4,824 (up $204). The income limit for the credit for joint return filers with two or more children is $43,415, up from $41,646 (up $1,769).
Gift exclusion: The annual gift exclusion rises to $13,000, up from $12,000 in 2008 (up $1,000).
Social Security Contribution and Wage Benefit Base: Increased to $106,800 from $102,000 (up $4,800). Income over $106,800 will not be subject to Social Security taxation, and at the current Social Security tax rate of 6.20%, the maximum Social Security taxes for 2009 is $6,621.60.
Traditional and Roth IRA Contribution Limits: No change from 2008. The Traditional IRA and Roth IRA contribution limits will be staying the same at $5,000 per year for those under age 50, and $6,000 per year for those 50 or above.

Although the information in this article helps summarize the changes in Federal Income Tax, you should consult the official IRS.gov web site and a professional tax advisor as needed.