Comparing Tax Rates: 2013 vs 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

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 !