Each year the income tax brackets are adjusted along with the standard deductions amount and marginal tax rates based on inflation changes.

Although the numbers aren’t exact yet, here is a good view of how the 2009 federal income tax brackets may appear if you are married filing jointly:

• $16,700 and under- If you are in this income bracket, you will be taxed at about 10%.
• $16,700-$67,900- This income bracket will be taxed at around 15%.
• $67,900-$137,050- This middle class income will be taxed at about 25%.
• $137,050-$208,850- The tax rate for this bracket will increase to 28%.
• $208,850-$372,950- The tax rate for this higher income level will be about 33%
• If you earn anything above $372,950 then you will be taxed at 35%.

These amounts are actually a decrease in percentage amount from the previous years and you could find yourself saving some money on your federal taxes this year.

Changes That May Affect Your Current Tax Liability

• The standard deduction amount this year will increase about $250 for single filers and $500 for couples filing together.
• The personal exemption amount will increase about $150.
• The gift tax exclusion will increase by $1,000.

If you find that any of these new changes will affect the way you currently file your return then visit TurboTax Online. It is very important to start planning early so there are no surprises come April 15^th.

TurboTax Online offers all of the up to date tax information and free tax support to help you get the biggest refund guaranteed.