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For more information please see: <A HREF="http://www.dinkytown.net">http://www.dinkytown.net</A> --> <H1>Marginal Tax Rate Calculator</H1><P>Knowing your income tax rate can help you calculate your tax liability for unexpected income, retirement planning or investment income. This calculator helps you estimate your average tax rate, your current tax bracket, and your marginal tax rate for the 2009 tax year. <P><CENTER> <!--[if IE]><object name="calculator" classid="clsid:8AD9C840-044E-11D1-B3E9-00805F499D93" codebase="http://java.sun.com/update/1.6.0/jinstall-6-windows-i586.cab#Version=1,4,0,0" height="380" width="565"><param name="code" value="TaxMargin" /><param name="archive" value="dinkytown.jar" /> <P style="font-size:1px; color: #ffffff" line-height: 1px><![endif]--><![if !IE]><P style="font-size:1px; color: #ffffff" line-height: 1px><![endif]></P><![if !IE]><APPLET name="calculator" code="TaxMargin.class" align="baseline" WIDTH="565" HEIGHT="380" archive="dinkytown.jar"><![endif]> <PARAM name="LINE_1_FILING_STATUS" value="1"> <PARAM name="LINE_6A_PERSONAL_EXEMPTION" value="0"> <PARAM name="LINE_6B_SPOUSE_EXEMPTION" value="0"> <PARAM name="LINE_7_WAGES_SALARIES_TIPS_ETC" value="50000"> <PARAM name="LINE_8A_TAXABLE_INTEREST" value="0"> <PARAM name="LINE_36_ITEMIZED_DEDUCTIONS" value="0"> <PARAM name="LINE_6C_DEPENDANTS" value="0"> <!--CUSTOM PARAMETERS--> <PARAM name="TEXT_FOR_REPORT" value="<HTML> <HEAD> <TITLE>Marginal Tax Rate Calculator</TITLE> <META HTTP-EQUIV='Content-Type' CONTENT='text/html; charset=iso8859-1'> <META NAME='description' CONTENT='Financial Calculators, &QCPQ;1998-2010 KJE Computer Solutions, LLC. For more information please see http://www.dinkytown.net'> <STYLE> <!-- BODY, TABLE, TD, TH, UL, OL, DD, DL, P, BR { font-family: helvetica, arial, sans-serif; font-size: 10pt; } H1 { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } DT { font-family: helvetica, arial, sans-serif; font-size: 10pt; font-weight: bold; } P.footer { font-family: helvetica, arial, sans-serif; font-size: 9pt; } DIV.large { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } --> </STYLE> </HEAD> <BODY bgcolor='#FFFFFF' LINK='#003399' VLINK='#666666' BGCOLOR='#FFFFFF'> <CENTER><table border=0 bgcolor='#000000' width=468 cellspacing=1 cellpadding=0><tr><td width='100%'><table bgcolor='#FFFFDD' border=0 width=468 cellspacing=1 cellpadding=5><tr><td width='100%' align=center valign=middle><DIV class=large>Marginal Tax Rate Calculator</DIV></td></tr></table></TD></TR></TABLE></CENTER> <H1>Your marginal income tax rate is estimated at MARGINAL_TAX_RATE. </H1>**GRAPH**<P>Your average tax rate is AVERAGE_TAX_RATE of your total income of LINE_7_WAGES_SALARIES_TIPS_ETC. Your income puts you in the BRACKET_TAX_RATE tax bracket. Your total federal income taxes are estimated at LINE_56_TOTAL_TAX. <P> <CENTER><table width=468 border=0 bgcolor='#000000' cellspacing=1 cellpadding=0><tr><td width='100%'><TABLE width=468 CELLSPACING=1 CELLPADDING=5 BORDER=0 BGCOLOR='#FFFFFF'> <TR BGCOLOR='CCCCCC'><TD COLSPAN=2><CENTER><b>Your Income Tax Rates</b></CENTER></TD></TR> <TR><TD><b>Marginal tax rate</b></TD><TD>MARGINAL_TAX_RATE</TD></TR> <TR><TD><b>Average tax rate</b></TD><TD>AVERAGE_TAX_RATE</TD></TR> <TR><TD><b>Income tax bracket</b></TD><TD>BRACKET_TAX_RATE</TD></TR> </TABLE></TD></TR></TABLE></CENTER> <P>Based on your filing status, incomes over EX_START_PHASE_OUT begin having their personal exemptions phased out. In addition, itemized deductions begin to be phased out at ITEMIZED_REDUCTION_STARTS. The child tax credit of CHILD_TAX_CREDIT_AMT per child begins to be phased out at CHILD_TAX_PHASE_OUT. This increases your tax bill, and your marginal tax rate. Including these phase outs can increase your tax bill. For example, if you earn an additional MARGINAL_TAX_INCREMENT you will owe income taxes at a MARGINAL_TAX_RATE marginal tax rate. <H1>How should you use your average and marginal tax rates?</H1><P>You should use your average tax rate when estimating your total tax liability for a year. For example, if you are planning your retirement and wish to estimate your tax liability for an entire year, you should use your average tax rate. Your marginal tax rate is useful when calculating taxes on additional income, such as the taxes on a windfall or a year end bonus. You can also use your actual tax bracket for these calculations, although it does not take the phase out of any tax deductions into account. <P> <H1>Tax Calculation Summary</H1><CENTER><table width=468 border=0 bgcolor='#000000' cellspacing=1 cellpadding=0><tr><td width='100%'><TABLE width=468 CELLSPACING=1 CELLPADDING=5 BORDER=0 BGCOLOR='#FFFFFF'> <TR BGCOLOR='CCCCCC'><TD COLSPAN=2><CENTER><b>Tax Calculation Summary</b></CENTER></TD></TR> <TR><TD><b>Wages, salaries, tips, etc</b></TD><TD>LINE_7_WAGES_SALARIES_TIPS_ETC</TD></TR> <TR><TD><b>Filing status</b></TD><TD>LINE_1_FILING_STATUS</TD></TR> <TR><TD><b>Personal exemption</b></TD><TD>LINE_6A_PERSONAL_EXEMPTION</TD></TR> <TR><TD><b>Spouse exemption</b></TD><TD>LINE_6B_SPOUSE_EXEMPTION</TD></TR> <TR><TD><b>Dependents qualifying for child tax credit</b></TD><TD>LINE_6C_DEPENDANTS</TD></TR> <TR><TD><b>Itemized deductions </b></TD><TD>LINE_36_ITEMIZED_DEDUCTIONS</TD></TR> <TR><TD><b>Itemized deductions after phase out</B><BR>( for LINE_1_FILING_STATUS Filers with incomes over ITEMIZED_REDUCTION_STARTS.)</b></TD><TD>ADJUST_ITEMIZED_DEDUCTIONS</TD></TR> <TR><TD><b>Standard deduction</b></TD><TD>LINE_36_STANDARD_DEDUCTION</TD></TR> <TR><TD><b>Deduction to use </B><BR>(higher of adjusted itemized deductions and standard deduction) </TD><TD>LINE_36_DEDUCTION_TO_USE</TD></TR> <TR><TD><b>Deduction for exemptions</b><BR>(including phase out for LINE_1_FILING_STATUS Filers with incomes over EX_START_PHASE_OUT.) </TD><TD valign=top>LINE_38_DEDUCTION_FOR_EXEMPTIONS</TD></TR> <TR><TD><b>Taxable income</b></TD><TD><b>LINE_39_TAXABLE_INCOME</b></TD></TR> <TR><TD><b>Child tax credit</b><BR>(including phase out for LINE_1_FILING_STATUS Filers with incomes over CHILD_TAX_PHASE_OUT.)</TD><TD valign=top>LINE_43_CHILD_TAX_CREDIT</TD></TR> <TR><TD><b>Additional child tax credit (refundable)</b><BR></TD><TD valign=top>ADDITIONAL_CHILD_TAX_CREDIT</TD></TR> <TR><TD><b>Make work pay tax credit</b></TD><TD>MAKE_WORK_PAY_CREDIT</TD></TR> <TR><TD><b>Total tax</b></TD><TD><b>LINE_56_TOTAL_TAX</b></TD></TR> </TABLE></TD></TR></TABLE> </CENTER> <BR> <HR SIZE=1> <CENTER><P class=footer> Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. </P></CENTER><br><br> </BODY> </HTML> "> <H1><CENTER>This Financial Calculator requires SUN's Java"! Plug-in. If you see this message you will need to download SUN's Java"! Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing  Install ActiveX Control . </CENTER></H1> <OL> You can also get SUN's Java"! Plug-in here: <A href="http://www.java.com/en/download/download_the_latest.jsp" target=_blank><b>Get the Java"! Plug-in!</b></A> <P>For more information about this Plug-in please visit: <A href="http://www.dinkytown.net/money/sunjvm.html" target=_blank><b>SUN's Java"! Plug-in</b></A> <BR>For more information these financial calculators please visit: <A href="http://www.dinkytown.net" target=_blank><b>Financial Calculators from KJE Computer Solutions, LLC</b></A> </OL><!--[if IE]></OBJECT><![endif]--><![if !IE]></APPLET><![endif]> </CENTER><CENTER><SCRIPT>document.write(showbuttons())</SCRIPT> </CENTER> <H1>Definitions</H1><P><TABLE align='center' WIDTH="95%"><TR><TD><DL><!--DEFN_START--> <DT><a name="0"><b>2009 Tax rates:</b></a><DD> Below are the resulting tax rates and income ranges for 2009: <CENTER> <TABLE WIDTH=90% BORDER=1> <TR class=tblheader><TD align=center colspan=5><b>Filing Status and Income Tax Rates 2009</b><P class=footer>Caution: Do not use these tax rate schedules to figure 2008 taxes. Use only to figure 2009 estimates. </P></TD></TR> <TR class=tblheader><TD align=center width="12%"><b>Tax rate</b></TD><TD align=center width="22%"><b>Married filing jointly<BR>or Qualified Widow(er)</b></TD><TD align=center width="22%"><b>Single</b></TD><TD align=center width="22%"><b>Head of household</b></TD><TD align=center width="22%"><b>Married filing separately</b></TD></TR> <TR class=tblrow><TD align=center width="12%"><b>10%</b></TD> <TD align=center width="22%"> $0 - 16,700</TD> <TD align=center width="22%"> $0 - 8,350</TD> <TD align=center width="22%"> $0 - $11,950</TD> <TD align=center width="22%"> $0 - 8,350</TD></TR> <TR class=tblrow2><TD align=center width="12%"><b>15% </b></TD> <TD align=center width="22%"> $16,701- 67,900</TD> <TD align=center width="22%"> $8,351- 33,950</TD> <TD align=center width="22%"> $11,951- 45,500</TD> <TD align=center width="22%"> $8,351- 33,950</TD></TR> <TR class=tblrow><TD align=center width="12%"><b>25%</b></TD> <TD align=center width="22%"> $67,901- 137,050</TD> <TD align=center width="22%"> $33,951- 82,250</TD> <TD align=center width="22%"> $45,501- 117,450</TD> <TD align=center width="22%"> $33,951- 68,525</TD></TR> <TR class=tblrow2><TD align=center width="12%"><b>28%</b></TD> <TD align=center width="22%"> $137,051- 208,850</TD> <TD align=center width="22%"> $82,251- 171,550</TD> <TD align=center width="22%"> $117,451- 190,200</TD> <TD align=center width="22%"> $68,526- 104,425</TD></TR> <TR class=tblrow><TD align=center width="12%"><b>33%</b></TD> <TD align=center width="22%"> $208,851- 372,950</TD> <TD align=center width="22%"> $171,551- 372,950</TD> <TD align=center width="22%"> $190,200- 372,950</TD> <TD align=center width="22%"> $104,425- 186,475</TD></TR> <TR class=tblrow2><TD align=center width="12%"><b>35%</b></TD> <TD align=center width="22%"> over $372,950</TD> <TD align=center width="22%"> over $372,950</TD> <TD align=center width="22%"> over $372,950</TD> <TD align=center width="22%"> over $186,475</TD></TR> </TABLE></CENTER> <CENTER>Source: http://www.irs.gov/pub/irs-drop/rp-08-66.pdf</CENTER> <DT><a name="1"></a><B>Wages, salaries, tips, etc.</B><DD>This is your total income for the year. To keep things simple this calculator assumes this is your net income, after deductions for retirement contributions such as 401(k)s, IRAs, etc.<P> <DT><B><a name="0">Filing status</a></B><DD>Choose your filing status. Your filing status determines the income levels for your Federal tax bracket. It is also important for calculating your standard deduction, personal exemptions, and deduction phase out incomes. The table below summarizes the five possible filing status choices. It is important to understand that your marital status as of the last day of the year determines your filing status.<P> <P><TABLE WIDTH=83% BORDER=1> <TR><TD align=center colspan=2><b>Filing Status for 2009</b></P></TD></TR> <TR><TD width="30%" valign=top><b>Married filing jointly</b></TD><TD >If you are married, you are able to file a joint return with your spouse. If your spouse died during the tax year, you are still able to file a joint return for that year. You may also choose to file separately under the status "Married filing separately".</TD></TR> <TR><TD width="30%" valign=top><b>Qualified Widow(er)</b></TD><TD>Generally, you qualify for this status if your spouse died during the previous tax year (not the current tax year) and you and your spouse filed a joint tax return in the year immediately prior to their death. You are also required to have at least one dependent child or step child whom which you are the primary provider.</TD></TR> <TR><TD width="30%" valign=top><b>Single<P></b></TD><TD valign=top>If you are divorced, legally separated or unmarried as of the last day of the year you should use this status.</TD></TR> <TR><TD width="30%" valign=top><b>Head of household</b></TD><TD>This is the status for unmarried individuals that pay for more than half of the cost to keep up a home. This home needs to be the main home for the income tax filer and at least one qualifying relative. You can also choose this status if you are married, but didn't live with your spouse at anytime during the last six months of the year. You also need to provide more than half of the cost to keep up your home and have at least one dependent child living with you. </TD></TR> <TR><TD width="30%" valign=top><b>Married filing separately</b></TD><TD>If you are married, you have the choice to file separate returns. The filing status for this option is "married filing separately".</TD></TR> </TABLE> <P>For 2009, the standard deductions are $11,400 for married couples filing jointly (and qualified widow(er)), $5,700 for married couples filing separately and singles, and $8,350 for heads of household. <P> <DT><a name="3"></a><B>Are you someone's dependent?</B><DD>Choose 'no' if no one can claim you or your spouse as a dependent. Choose 'yes' if someone can claim you as a dependent. Choose 'both you and your spouse if you both are dependents. (You are a dependent if someone supports you and can claim a dependency exemption for you.)<P> <DT><a name="4"></a><B>Number of additional dependents</B><DD>A dependent is someone you support and for whom you can claim a dependency exemption. In 2009, each dependent you claim entitles you to receive a $3,650 reduction in your taxable income (see exemptions below). In 2009, each dependent under the age of 17 also receives a tax credit of $1000. The credit is, however, phased out at higher incomes.<P> <DT><a name="5"></a><B>Itemized deductions</B><DD>This is the total of your itemized deductions that you can include on schedule A of your Federal income taxes. For most people this includes state income taxes paid for the year, interest on a mortgage and any charitable contributions. Other itemized deductions include certain investment expenses, medical expenses exceeding 7.5% of your adjusted gross income, and some moving expenses.<!--DEFN_END--></DL></TD></TR></TABLE> <BR> <HR SIZE=1> <CENTER> <P class=footer> Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. </P></CENTER> <BR> </BODY> </HTML>