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05/24/2012 at 04:51PM PDT
Important Announcement! A planned system-wide upgrade will take place over the Memorial Day Weekend in the US (From Thurs, May 24, 2012 at 6 pm PDT thru Tues, May 29, 2012 at 5 am PDT). This includes QuickBooks, QuickBooks Payroll, Point of Sale, & Salesforce.com. This is only for US based products. This does not affect QuickBooks Online customers! During this time, you can shop, but can’t place orders online, activate products or update account info. We apologize for the inconvenience & thank you for patience while we improve our infrastructure to better serve you. International versions are unaffected. For more info, see our community discussion.
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01/31/09 7:42pm PST
Viewed by asker 05/13/10 2:58pm PDT

Marginal tax rate

Is there a report in Proseries that will tell me the clients marginal tax rate? The YOY schedule shows the effective rate which is informative but not the margianl rate.

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tax2009
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05/11/10 7:21pm PDT

Below are the marginal tax brackets for 2009.  Source: Internal Revenue Service, Revenue Procedure 2008-66 (pdf).
 

Single Filing Status
(Tax Rate Schedule X)

* 10% on income between $0 and $8,350
* 15% on the income between $8,350 and $33,950; plus $835
* 25% on the income between $33,950 and $82,250; plus $4,675
* 28% on the income between $82,250 and $171,550; plus $16,750
* 33% on the income between $171,550 and $372,950; plus $41,754
* 35% on the income over $372,950; plus $108,216

Married Filing Jointly or Qualifying Widow(er) Filing Status
(Tax Rate Schedule Y-1)

* 10% on the income between $0 and $16,700
* 15% on the income between $16,700 and $67,900; plus $1,670
* 25% on the income between $67,900 and $137,050; plus $9,350
* 28% on the income between $137,050 and $208,850; plus $26,637.50
* 33% on the income between $208,850 and $372,950; plus $46,741.50
* 35% on the income over $372,950; plus $100,894.50

Married Filing Separately Filing Status
(Tax Rate Schedule Y-2)

* 10% on the income between $0 and $8,350
* 15% on the income between $8,350 and $33,950; plus $835
* 25% on the income between $33,950 and $68,525; plus $4,675
* 28% on the income between $68,525 and $104,425; plus $13,318.75
* 33% on the income between $104,425 and $186,475; plus $23,370.75
* 35% on the income over $186,475; plus $50,447.25

Head of Household Filing Status
(Tax Rate Schedule Z)

* 10% on the income between $0 and $11,950
* 15% on the income between $11,950 and $45,500; plus $1,195
* 25% on the income between $45,500 and $117,450; plus $6,227.50
* 28% on the income between $117,450 and $190,200; plus $24,215
* 33% on the income between $190,200 and $372,950; plus $44,585
* 35% on the income over $372,950; plus $104,892.50

How Marginal Tax Rates are Used
Individuals can use the tax rate schedules in a number of ways to help plan their finances. You can use these tax rates to figure out how much tax you will pay on extra income you earn. For a taxpayer in the 25% tax bracket, extra income will be taxed at that rate until the taxpayer reaches the next tax bracket. Alternatively, you can use these tax rates to figure out how much tax you will save by increasing your deductions. For a taxpayer in the 28% tax bracket will save 28 cents in federal tax for every dollar spent on a tax-deductible expense, such as mortgage interest or charity.

 

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ChuckCPA
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05/12/10 11:44am PDT

Tax2009,

If you're gonna wait 18 months to respond, you should at least answer the poor guy's question.

The 5-year Tax History Report shows the taxpayer's marginal tax rate for all 5 years, if you have all the years on file. I have also modified my Client Letter to include the marginal tax rate.

Not again....
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05/12/10 7:39pm PDT

Additionally, you might want to consider if AMT plays a role in the marginal rate...

"I refuse to believe corporations are people until Texas executes one." -Ben Harper, Earth First
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05/13/10 7:09am PDT

....especially this year.

Not again....
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05/13/10 2:58pm PDT
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Thanks everyone, just wanted a simple reference point and I knew it was on one of the reports...and yes, I figured it out about 2 1/2 months ago that is was on the 5 yr history rpt.

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