2012 Federal Income Tax Brackets Released By IRS

2012 tax bracketsThe IRS recently released the official 2012 inflation adjusted income tax brackets.  This is something the IRS must do each year so the tax rates keep pace with inflation.  These income tax bracket changes will affect your 2012 income and your 2013 income tax returns.  Just something to keep in mind when it comes time to filing your taxes.

If you remember back to 2010, Congress eventually voted on extending the Bush tax cuts through 2012.  So, not surprisingly, the income breakdown is very similar to the 2011 federal income tax brackets.  The only change for 2012 is the inflation adjustment to the income levels and deductions.

Though changes can still be made by Congress before the start of 2012, it’s highly unlikely.  Federal tax reform looks to be a big part of the 2012 presidential election campaigns.  Any changes now would spoil the future tax debate.

These tax rates are for the 2012 tax year due April 2013. Use the 2013 federal income tax brackets for returns due in April 2014.

2012 Federal Income Tax Brackets

Here’s the IRS inflation adjusted tax brackets broken down by filing status:

Tax Rate Single Married, Filing Jointly Married, Filing Separately Head of Household
10% $0 – $8,700 $0 – $17,400  $0 – $8,700  $0 – $12,400
15% $8,700 – $35,350 $17,400 – $70,700 $8,700 – $35,350 $12,400 – $47,350
25% $35,350 – $85,650 $70,700 – $142,700 $35,350 – $71,350 $47,350 -  $122,300
28% $85,650 – $178,650 $142,700 – 217,450  $71,350 – $108,725 $122,300 – $198,050
33% $178,650 – $388,350 $217,450 – $388,350 $108,725 – $194,175 $198,050 – $388,350
35% Over $388,350 Over $388,350 Over $194,175 Over $388,350


Want a quick and easy way to file your taxes?  Do your taxes online and eFile for free with Turbotax and H&R Block.

2012 Standard Deduction

The 2012 standard deductions were based off the 2011 numbers and adjusted for inflation.

Filing Status Standard Deduction
Single  $5,950
Married, Filing Jointly  $11,900
Head of Household  $8,700
Married, Filing Separately  $5,950


Other Notable 2012 Tax Changes

The complete list of the 2012 inflation adjusted items (FYI it’s a 21 page IRS .pdf file) was too extensive to post them all.  But here are a few important exemptions and deductions that you might use when the eFile date rolls around and one that I’ll probably never discuss again.

The personal exemption amount rose to $3,800, up $100 from 2011.

The $2,500 maximum deduction for interest on eduction loans begins to phase out for taxpayers with a modified adjusted gross income (MAGI) of over $60,000 ($125,000 for joint returns).  The deduction is completely phased out at a MAGI of $75,000 or more ($155,000 or more for joint returns).

If you use the standard deduction on your tax return, for 2012 married filing jointly it will be $11,900, for single and married filing separately it will be $5,950, and for head of household it will be $8,700.

Lastly, falling under the “if it’s ever a Jeopardy answer”.  If you’re in the arrow business, the Tax on Arrow Shafts has gone up.  The tax imposed on the first sale of any shaft by a manufacturer, producer, or importer for making certain arrows is now $0.46 per shaft.  Good to know.

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  1. says

    Heavens no, an increase in arrow shafts?! I joke, but I’m sure some people actually ended up saying that. Sorry arrow manufactures out there!

    These are great to know though, thanks.

    • Sue Racine says

      Why was this 2% FICA reduction such a deal? If 6.2% FICA cannot support Social Security, how can $.2% support it. Even if it was paid for from some other source, it is still a loss to the American worker. If the Dems and Reps wanted to give us relief, then why coulddn’t they have reduced the FED TAX rate by 2%. Wouldn’t we have received a better benefit? In turn, what was the actual loss to SS Retirement Fund. (Iknow, there is no fund, but now there is less money).

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