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