Do you know what a tax table is? Do you know how to read one? Stick around and find out.
What are tax tables?
The IRS publishes tax tables every year to help people calculate the amount of their income tax. These tables are included in the instructions on your tax return, as well as in IRS Publication 17. When you know how to read these tables, you can more easily figure out how much you owe in taxes, whether you’re currently filing or looking to budget for the future.
Here are the steps to take in order to correctly find the information you need in a tax table.
- Figure out your filing status
You can choose any status for which you’re eligible, but choose with care: your filing status can affect your deduction. For example, in 2022, taxpayers filing singly can take a $12,950 standard deduction. But single taxpayers filing as head of household (which you may qualify for if you have any dependents), can increase that number to $19,400.
- Figure out your taxable income
Your taxable income is the sum total of all your sources of income, minus deductions and tax credits. If you have any non-taxable sources of income—such as gifts, bequests, or inheritances, or cash rebates on purchased items—those do not factor into your taxable income.
- Find your income bracket in the tax table
Look at the tax table in your tax return instructions or in IRS Publication 17, for the tax year for which you’re filing. In the left-hand column, look for the income bracket that includes your taxable income. For example, if your taxable income is $35,355, you would choose the bracket for $35,350 to $35,400.
- Find your filing status in the tax table
In the top row of the table, look for the column with your filing status.
- Match your filing status column with your income bracket row
From there, it’s pretty straightforward: simply match the column of your filing status up with the row of your income bracket. The place where the two intersect is your amount of taxes owed. For example, if you’re filing singly and make $35,355 a year in taxable income, you’d find the place where the single column and $35,350 to $35,400 income bracket intersect.
That’s all there is to it!