Monday, January 23, 2012
Tax Rates - 2012 and Beyond
The following chart illustrates the Federal tax rates that will be applied to various income levels in 2012:
Additionally, the following standard deduction levels and personal exemption will apply to all 2012 tax filings:
Finally, the following chart details the changes in tax law that are scheduled to occur in 2013. Notice the increase in the capital gains tax, that dividends will be taxed as ordinary income, and that the top tax rates are scheduled to rise:
Consequently, it may make sense for some investors to recognize certain long-term capital gains or ordinary income in 2012 while rates are low.