Income Tax

Get income tax help for your return

Income tax is something we all have to deal with, year in and year out, and it's something that many people leave to the last minute. However, this can cost you a great deal of money, as hastily preparing your income taxes can cause you to overlook deductions that could have saved you hundreds or even thousands of dollars. If you need income tax help, turn to a professional for guidance, but before you do, it's important that you understand the basics so you have an idea where you stand before you start crunching the numbers.

Income Tax Rates in the United States and Canada

Here's an overview of how federal income taxes are structured in North America.

In the United States:

  • Incomes of up to $8,350 are taxed at a 10 percent rate.
  • Incomes of between $8,351 and $33,950 are taxed at a 15 percent rate.
  • Incomes of between $33,951 and $82,250 are taxed at a 25 percent rate.
  • Incomes of between $82,251 and $171,550 are taxed at a 28 percent rate.
  • Incomes of between $171,551 and $372,950 are taxed at a 33 percent rate.
  • Incomes above $372,951 are taxed at a 35 percent rate.

You are also allowed a standard deduction from the total amount of your income. This amount varies, depending on whether you are a single individual, the sole income earner in a household, or filing a joint return as part of a common-law or legally married couple.

In Canada:

  • Incomes of up to $10,320 are not taxed.
  • Incomes of between $10,321 and $41,544 are taxed at a 15 percent rate.
  • Incomes of between $41,545 and $83,088 are taxed at a 22 percent rate.
  • Incomes of between $83,089 and $128,800 are taxed at a 26 percent rate.
  • All incomes above $128,801 are taxed at a 29 percent rate.

Canada also allows a basic personal deduction, which can also vary depending on how you are filing your taxes (though the basic amount is $10,320, which is why people who earn that much money or less are not taxed). This basic personal deduction is subtracted from your gross income; it and all other deductions, once subtracted from your gross income, determines your personal taxable income.

State income tax and provincial income tax rates also vary between each jurisdiction. Your geographic location can have a major impact on your rates, which is something to keep in mind if you need federal income tax help -- what you owe the federal government may not tell the whole story.