2009 VERSUS 2010 MARGINAL TAX RATES
Whether you should defer or accelerate income and deductions between 2009 and 2010 depends to a great extent on your projected marginal (highest) tax rate for each year.
The highest marginal tax rate for 2009 and for 2010 is 35 percent. The tax brackets for 2009 are shown in the box below. Your marginal tax rate can be higher due to the reduction or elimination of itemized deductions and personal exemptions as your adjusted gross income (“AGI”) rises above certain levels. These adjustments are discussed in more detail on pages 4 and 12. Projections of your 2009 and 2010 income and deductions are necessary to estimate your marginal tax rate for each year.