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Your “Filing Status” determines both your tax rates and income tax brackets. There are five groups or categories: Married Filing Jointly, Married Filing Separately, Head of Household, Qualifying Widow (er) With A Dependent Child, and Single. If you are not sure which group is correct (and the best) for your situation, you can follow this link to the IRS website (http://www.irs.gov/uac/What-is-My-Filing-Status%3F) and click on the “Begin” link. After you have answered a series of questions this information will be provided to you. For 2012, the tax brackets and tax rates can be obtained from page three of the Merrill Lynch document from this website (http://www.billseabrookecpa.com/resources/2012merrilllynchtaxplanningdocument.pdf ) After you have your filing status information, be sure to also read through the appropriate sections of IRS Publication 17 (“Your Federal Income Tax”) using this link  http://www.irs.gov/publications/p17/ch02.html   to confirm that you have made the correct and best choice, IF you have a choice between two categories, i.e. Married Filing Jointly or Married Filing Separately. This publication also has important information that must be considered if you live in a “Community Property” state. (more…)