Understanding Tax Bracket for Tax Filing in 2019 for NR in the US

The tax filing season for 2018 is just around the corner. However, the IRS has just released the updated tax brackets adjusted with inflation for 2019. If you are in the middle of tax filing for 2018, it is better to finish the same before moving to 2019 changes.

The latest iteration adjusts the tax brackets and certain credits according to inflation. But the first and foremost step is to figure out whether you are liable to file tax returns. The IRS’s website has a link which will help you identify whether or not you need to file returns.

However, the following simple criteria should help you understand the same. If your income exceeds these levels, you are liable to pay taxes. There still are seven tax brackets but there have been subtle changes to the income tax brackets.

  • 10% tax rate

    • If you are single and earn up to $9,700.
    • If you are married and filing jointly and earn up to $19,400.
    • If you the head of a household and earn up to $13,850.
    • If you are married but filing separately and earn up to $9,700.
  • 12% tax rate

    • If you are single and earn between $9,701and$39,475.
    • If you are married and filing jointly and earn between $19,401 and $78,950.
    • If you the head of a household and earn between$13,851 and $52,850.
    • If you are married but filing separately and earn between $9,701 and $39,475.
  • 22% tax rate

    • If you are single and earn between $39,476 and $84,200.
    • If you are married and filing jointly and earn between $78,951 and $168,400.
    • If you the head of a household and earn between $52,851 and $84,200.
    • If you are married but filing separately and earn between $39,476 and $84,200.
  • 24% tax rate

    • If you are single and earn between $84,201 and $160,725.
    • If you are married and filing jointly and earn between $168,401 and $321,450.
    • If you the head of a household and earn between $84,201 and $160,700.
    • If you are married but filing separately and earn between $84,201 and $160,725.
  • 32% tax rate

    • If you are single and earn between $160,726 and $204,100.
    • If you are married and filing jointly and earn between $321,451 and $408,200.
    • If you the head of a household and earn between $160,701 and $204,100.
    • If you are married but filing separately and earn between $160,726 and $204,100.
  • 35% tax rate

    • If you are single and earn between $204,101 and $510,300.
    • If you are married and filing jointly and earn between $408,201 and $612,350.
    • If you the head of a household and earn between $204,101 and $510,300.
    • If you are married but filing separately and earn between $204,101 and $306,175.
  • 37% tax rate

    • If you are single and earn above $510,300.
    • If you are married and filing jointly and earn above$612,350.
    • If you the head of a household and earn above$510,300.
    • If you are married but filing separately and earn above$306,175.

How to Assess?

The first step of assessing your tax liability, you first need to calculate all your sources of income. This total income amount at the end is known as the gross income. You can then apply all the adjustments and exemptions from your gross income. This then becomes your AGI or adjusted gross income. It works as the starting point for calculating your tax liability.

2019-03-26T13:28:46+00:00March 30, 2019|Tax Planning, Tax Preparation|0 Comments