Income Tax Calculation In The United States For Indians



Federal Tax Rates (Common To All States In The US)


The IRS recently released the federal income tax rates for 2011. Here is what the 2011 tax brackets look like:



Tax Rate



Single



Married Filing Joint



Married Filing Separate



Head of Household


10%


Up to $8,500


Up to $17,000


Up to $8,500


Up to $12,150


15%


$8,501 – $34,500


$17,001 – $69,000


$8,501 – $34,500


$12,151 – $46,250


25%


$34,501 – $83,600


$69,001 – $139,350


$34,501 – $69,675


$46,251 – $119,400


28%


$83,601 – $174,400


$139,351 – $212,300


$69,676 – $106,150


$119,401 – $193,350


33%


$174,401 – $379,150


$212,301 – $379,150


$106,151 – $189,575


$193,351 – $379,150


35%


Over $379,150


Over $379,150


Over $189,575


Over $379,150



State Income Tax Rates By State


Look for the state income tax rates at http://www.taxadmin.org/fta/rate/ind_inc.pdf




Social Security and Medicare taxes


Social Security taxes



2010



2011



Employee


6.2% on earnings up to $106,800


4.2% on earnings up to $106,800


Employer


6.2% on earnings up to $106,800


6.2% on earnings up to $106,800


Self-employed


*Can be offset by income tax provisions


12.4%*on earnings up to $106,800


10.4%*on earnings up to $106,800


Medicare taxes



2010



2011



Employee/employer (each)


1.45% on all earnings


1.45% on all earnings


Self-employed
* Can be offset by income tax provisions


2.9%*on all earnings


2.9%*on all earnings



Work credits—When you work, you earn credits toward Social Security benefits. You need a certain number of credits to be eligible for Social Security benefits. The number you need depends on your age and the type of benefit for which you are applying. You can earn a maximum of four credits each year. Most people need 40 credits to qualify for retirement benefits.




2010


2011



$1,120 earns one credit


$1,120 earns one credit


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