1 Tax imposed
Overview of the Internal Revenue Code
Title: Title 26 - Internal Revenue Code
Subtitle A: Income Taxes
Chapter 1: Normal Taxes and Surtaxes
Subchapter A: Determination of Tax Liability
Part I: Tax on Individuals
Effective Date: December 20, 2019
Tax Imposed on Individuals (26 U.S.C.A. § 1)
Married Individuals Filing Joint Returns
Taxable income brackets:
Not over $36,900: 15% of taxable income
Over $36,900 but not over $89,150: $5,535 + 28% of excess over $36,900
Over $89,150 but not over $140,000: $20,165 + 31% of excess over $89,150
Over $140,000 but not over $250,000: $35,928.50 + 36% of excess over $140,000
Over $250,000: $75,528.50 + 39.6% of excess over $250,000
Heads of Households
Taxable income brackets:
Not over $29,600: 15% of taxable income
Over $29,600 but not over $76,400: $4,440 + 28% of the excess over $29,600
Over $76,400 but not over $127,500: $17,544 + 31% of excess over $76,400
Over $127,500 but not over $250,000: $33,385 + 36% of excess over $127,500
Over $250,000: $77,485 + 39.6% of excess over $250,000
Unmarried Individuals (Other than Surviving Spouses and Heads of Households)
Taxable income brackets:
Not over $22,100: 15% of taxable income
Over $22,100 but not over $53,500: $3,315 + 28% of excess over $22,100
Over $53,500 but not over $115,000: $12,107 + 31% of excess over $53,500
Over $115,000 but not over $250,000: $31,172 + 36% of excess over $115,000
Over $250,000: $79,772 + 39.6% of excess over $250,000
Married Individuals Filing Separate Returns
Taxable income brackets:
Not over $18,450: 15% of taxable income
Over $18,450 but not over $44,575: $2,767.50 + 28% of the excess over $18,450
Over $44,575 but not over $70,000: $10,082.50 + 31% of excess over $44,575
Over $70,000 but not over $125,000: $17,964.25 + 36% of excess over $70,000
Over $125,000: $37,764.25 + 39.6% of excess over $125,000
Estates and Trusts
Taxable income brackets:
Not over $1,500: 15% of taxable income
Over $1,500 but not over $3,500: $225 + 28% of excess over $1,500
Over $3,500 but not over $5,500: $785 + 31% of excess over $3,500
Over $5,500 but not over $7,500: $1,405 + 36% of excess over $5,500
Over $7,500: $2,125 + 39.6% of excess over $7,500
Adjustments and Inflation Considerations
Phaseout of Marriage Penalty
To be adjusted annually by Secretary by December 15 each year, as of 1993, to prevent inflation from causing tax increases.
Cost-of-Living Adjustments
Based on the CPI-U, changes apply for tax years following the necessary adjustments.
Capital Gains Tax Rate
Net capital gains: Tax shall not exceed a sum calculated as defined in the section, with specific percentage brackets established for gains.
Important Tax Definitions and Provisions
Adjusted Net Capital Gain: Detailed definitions and rules for determining investment income, including percentages applied for different income brackets.
Legislative References
Includes information regarding prior legislation amendments affecting tax calculations and adjustments, along with specific guidelines for implementation across various sectors.