C Corp Tax Rates
Posted by taxguru on December 31, 2010
From a reader:
Subject: Incorrect corporate tax rate
The tax rate table is incorrect (and outdated) – http://www.taxguru.org/incometax/Rates/1120.htm – the incorrection is as following:
Under the Tax column, you have, as an example, 25% “minus” $5000, it should be (25% of amount greater than $50,000) + $5,000.
My Reply:
Actually, that table is still correct. It is set up as a short-hand method of calculating the tax by multiplying the total taxable income by the appropriate rate for the effective bracket and then subtracting the effect of the lower brackets. It’s a faster calculation method than figuring each bracket individually and adding them together.
Here is a link to the most recent C Corp tax table from my main reference book, TheTaxBook.
From Tax Info You can see that it is the exact same as the table I have had on my website for the past several years.
I hope this clears this up for you.
Kerry Kerstetter
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