Anthem Opinions: Comparing Tax Rates: 2013 vs 2014

Sunday, June 15, 2014

Tax Planning...2014

For some people, June 15th is not just Father's Day, but it's also...

... time for your 2nd Federal Income Tax estimated payment.

Should you be filing estimated payments? That is a topic that should be discussed with a tax advisor.

Sometimes failing to do so can create a tax penalty if by the end of the calendar year, most of what you owe, hasn't been paid.

What's the starting point?

Looking at the tax rates and coming up with an idea of what you expect to have as an annual income.

Below are the federal income tax rates applicable to 2014 and those that applied to 2013.

Are their differences?

YES...and it goes a long way past these charts.

What's the best advice?

Simply...PLAN...and talk to the right person who can give you sound advice in order to avoid a surprise next April 15th.

2014 Tax Brackets (for taxes due April 15, 2015)
Tax rate	Single filers	Married filing jointly or qualifying widow/widower	Married filing separately	Head of household
*10%*	*Up to $9,075*	*Up to $18,150*	*Up to $9,075*	*Up to $12,950*
*15%*	*$9,076 to $36,900*	*$18,151 to $73,800*	*$9,076 to $36,900*	*$12,951 to $49,400*
*25%*	*$36,901 to $89,350*	*$73,801 to $148,850*	*$36,901 to $74,425*	*$49,401 to $127,550*
*28%*	*$89,351 to $186,350*	*$148,851 to $226,850*	*$74,426 to $113,425*	*$127,551 to $206,600*
*33%*	*$186,351 to $405,100*	*$226,851 to $405,100*	*$113,426 to $202,550*	*$206,601 to $405,100*
*35%*	*$405,101 to $406,750*	*$405,101 to $457,600*	*$202,551 to $228,800*	*$405,101 to $432,200*
*39.6%*	*$406,751 or more*	*$457,601 or more*	*$228,801 or more*	*$432,201 or more*

Progressive tax rates, brackets

2013 Tax Rates

*Tax rate*	*Single filers*	*Married filing jointly or qualifying widow/widower*	*Married filing separately*	*Head of household*
*10%*	*Up to $8,925*	*Up to $17,850*	*Up to $8,925*	*Up to $12,750*
*15%*	*$8,926 - $36,250*	*$17,851 - $72,500*	*$8,926- $36,250*	*$12,751 - $48,600*
*25%*	*$36,251 - $87,850*	*$72,501 - $146,400*	*$36,251 - $73,200*	*$48,601 - $125,450*
*28%*	*$87,851 - $183,250*	*$146,401 - $223,050*	*$73,201 - $111,525*	*$125,451 - $203,150*
*33%*	*$183,251 - $398,350*	*$223,051 - $398,350*	*$111,526 - $199,175*	*$203,151 - $398,350*
*35%*	*$398,351 - $400,000*	*$398,351 - $450,000*	*$199,176 - $225,000*	*$398,351 - $425,000*
*39.6%*	*$400,001 or more*	*$450,001 or more*	*$225,001 or more*	*$425,001 or more*

And that planning should start...

Now !