DEFINITION of Tax Schedule
A tax schedule is a rate sheet used by individual taxpayers to determine their estimated taxes due. The schedule provides tax rates for given ranges of taxable income.
The tax schedule is also called the rate schedule or tax rate schedule.
BREAKING DOWN Tax Schedule
There are four main schedules used by the Internal Revenue Service (IRS), based on the filing status of the individual:
The main tax schedules have income breakpoints clearly stated and show which tax rates apply above and beneath these breakpoints. The tax rate schedules for 2018 are:
2018 Tax Rate Schedules
These schedules will change each tax year and may have different income ranges than those shown on state or municipality tax forms. Each year the IRS updates or adjusts the rate schedules in accordance with guidelines that Congress established in the IRC. In general, the IRS bases such adjustments on inflation and cost of living increases in the previous year.
Tax schedule is also used to describe the various addendum sheets to IRS Form 1040, which include Schedules A (itemized deductions), B (dividend & interest income), C and C-EZ (self-employment business profit or loss), D (capital gains), EIC (earned income tax credit), and SE (self-employment tax). A tax schedule is to be prepared in addition to your tax return when you have certain types of income and deductions. The amounts put down on these tax schedule forms are transferred to Form 1040. A taxpayer that qualifies to use the shorter and simpler Form 1040EZ does not need to complete any of the tax schedules.
Investors can find all federal tax schedules on the IRS website, www.irs.gov.