- Federal Tax Brackets
- Income tax groupings specified by the Internal Revenue Service (IRS) that determine at what rate an individual, trust, or corporation's annual income will be subject to federal income tax. Federal tax brackets are adjusted periodically to account for the effects of inflation over time.
Federal tax brackets are structured so that individuals or legal entities are taxed at different rates depending upon the amount of annual income they earn.
For individuals, the federal tax brackets are structured so that as an individual earns more annual income, his or her earnings are taxed at a higher rate.
Corporate federal tax brackets roughly provide for increasing tax rates as businesses earn more income, but there are usually some deviations from that general rule. For example, 2006 corporate income from $100,000 and $355,000 was taxed at a rate of 39%, while corporate income from $335,000 to $10 million was taxed at 34%.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Tax bracket — Tax brackets are the divisions at which tax rates change in a progressive tax system (or an explicitly regressive tax system, although this is much rarer). Essentially, they are the cutoff values for taxable income mdash; income past a certain… … Wikipedia
tax — A charge by the government on the income of an individual, corporation, or trust, as well as the value of an estate or gift. The objective in assessing the tax is to generate revenue to be used for the needs of the public. A pecuniary burden laid … Black's law dictionary
Tax Increase Prevention and Reconciliation Act of 2005 — The Tax Increase Prevention and Reconciliation Act of 2005 (or TIPRA, USPL|109|222, USStat|120|345) was enacted on May 17, 2006. This bill prevents several tax provisions from sunseting in the near future. The two most notable pieces of the bill… … Wikipedia
tax rate — n. The percentage of income or purchase price that must be paid in tax; see also tax bracket The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008. tax rate … Law dictionary
Income tax in the United States — UStaxationThe federal government of the United States imposes a progressive tax on the taxable income of individuals, partnerships, companies, corporations, trusts, decedents estates, and certain bankruptcy estates. Some state and municipal… … Wikipedia
Filing Status (federal income tax) — Filing Status is an important factor when computing taxable income under the Federal Income tax in the United States. Your federal tax filing status defines the type of tax return form an individual will use. [… … Wikipedia
Bush tax cuts — Part of a series of articles on Unit … Wikipedia
Economic Growth and Tax Relief Reconciliation Act of 2001 — The Economic Growth and Tax Relief Reconciliation Act of 2001 (USPL|107|16, USStat|115|38, June 72001), was a sweeping piece of tax legislation in the United States. It is commonly known by its abbreviation EGTRRA, often pronounced egg tra or egg … Wikipedia
Corporate tax in the United States — Part of a series on Taxation Taxation in the United States … Wikipedia
Kiddie Tax — The kiddie tax rule exists in the United States of America and can be found in [http://www.law.cornell.edu/uscode/html/uscode26/usc sec 26 00000001 000 .html Internal Revenue Code § 1(g)] , which “taxes certain unearned income of a child at the… … Wikipedia