|
A NEW 10%
individual income tax bracket has been created for some taxable income
that is currently taxed at 15%, retroactive to January 1, 2001. The IRS
has issued "Advance Tax Refund Checks" (Rebate Checks) to most taxpayers
in the summer of year 2001 because of this new tax bracket. Under the new
law, taxpayers were entitled to a refundable tax credit of 5% (the
difference between the 15% and the 10% tax rate bracket) of the amount of
taxable income that would otherwise be eligible for the new 10% tax rate.
The advance tax refund is a substitute for the 10% tax rate bracket for
Year 2001.
See table
below for taxable income subject to the new 10% tax rate:
|
Application of the NEW 10% Tax Bracket |
|
If your filing status
is. . . |
For tax years 2001 -
2007 |
For tax years 2008 &
later |
|
Single or Married
Filing Separately |
Applies to FIRST
$6,000 of taxable income |
Applies to FIRST
$7,000 of taxable income |
|
Head of Household |
Applies to FIRST $10,000 of taxable
income |
Applies to FIRST $10,000 of taxable
income |
|
Married Filing
Jointly |
Applies to FIRST $12,000 of taxable
income |
Applies to FIRST $14,000 of taxable
income |
|
