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Understanding the IRS Tax Tables

Understanding the IRS Tax Tables

The IRS Tax Tables can be quite intimidating and confusing for many taxpayers. However, understanding these tables is crucial in accurately filing your tax return and avoiding mistakes in paying your taxes. In this article, we’ll discuss the basics of the IRS Tax Tables and how you can use them to determine your tax liability.

What are IRS Tax Tables?

The IRS Tax Tables are a set of charts that help taxpayers calculate their federal income tax liability based on their taxable income and filing status. They are used to determine the amount of tax owed or refunded to taxpayers when they file their annual tax returns. Tax tables are based on the Internal Revenue Code (IRC) which is a set of tax laws that govern how individual taxpayers and businesses pay their taxes to the federal government.

How to read IRS Tax Tables

IRS tax tables are published every year and are based on updated tax laws. To use the tax tables, you’ll need to know your filing status and taxable income. Taxable income is the amount left over after you have taken into account all of your personal and business deductions. Once you have accurately calculated your taxable income and filing status, you can then use the tax tables to determine your tax liability.

The IRS Tax Tables are divided into four main sections, each of which lists the tax brackets for each filing status. The tax brackets represent the range of incomes that fall within a particular tax rate. The tax rate increases as the taxable income increases.

For example, let’s say your filing status is Single and your taxable income is $40,000. You would first find the section for Single filers in the respective tax year’s tax table. The income range for the first tax bracket, which is taxed at 10%, is $0 to $9,325 for tax year 2016 (this was increased to $9,525 for tax year 2018). The next bracket, taxed at 15%, is $9,326 to $37,950 (this was increased to $9,526 to $38,700 for tax year 2018). Since your taxable income falls into the second tax bracket in this example, your tax for that bracket will be calculated using the tax rate of 15%.

Calculating tax using IRS Tax Tables

To calculate the tax amount owed for the second bracket, you’ll need to subtract the top end of the first bracket ($9,325 in 2016) from your taxable income ($40,000 in this example). This will give you the amount of income that falls within the second bracket, which is $30,675 in this case. To calculate your tax for this bracket, you’ll then multiply the $30,675 by the tax rate of 15% which gives a result of $4,601.25.

Remember that this is just an example and tax rates and brackets will vary by year. It’s important to check the IRS website for the current year’s tax tables before filing your taxes.

Using IRS Tax Tables for deductions and credits

The IRS Tax Tables are also used to determine eligibility and amounts for deductions and credits. For example, taxpayers who contribute to an Individual Retirement Account (IRA) may be eligible for an IRA deduction. The tax tables provide the income limits for eligibility and the maximum amount of the deduction allowed based on filing status.

Another common use for the tax tables is determining eligibility for the Earned Income Tax Credit (EITC) which is designed to help low- to moderate-income workers and families. The tax tables help determine the credit amount based on the taxpayer’s adjusted gross income and number of dependents.

Conclusion

Understanding the IRS Tax Tables is important for accurate tax filing and avoiding mistakes on your tax return. While it can be confusing at first, taking the time to read and understand the tables can help you save money and avoid penalties. The IRS provides resources on their website for taxpayers to learn more about tax tables, including an online tax calculator, as well as instructions for filing your tax return correctly. Always make sure to stay up-to-date on current tax rates and brackets to ensure accurate calculations.


IRS tax tables can assist people when they are attempting to determine their taxes. Tax tables can be completed by looking at the forms that a person fills when they are filing for their taxes. By filling out these forms properly, a person can calculate their taxes to clarify how much is owed to them, or how much they owe to, the government.

Generally, a person will either use a 1040EZ, a 1040A, or a 1040 when they are filling out their taxes. Listed on all of these forms is a line which if entered into the tax tables will be able to generate the amount that will be owed by them or owed to them. The lines to be entered are as followed: line 39 on the 1040 form, line 25 of the 1040A form, and line 6 on the 1040EZ form.

IRS tax tables can be found and downloaded on the irs.gov website. These forms can be accessed electronically or can be printed and filled out. On the website a complete list of directions is available to help individuals fill out the different tab tables depending on the forms completed. Also included on the tax tables are examples to help clarify the directions and avoid any confusion.

IRS tax tables can be especially helpful for those who are waiting for a refund from the government or for those who are attempting to figure out any bills or payments for the upcoming year.