If you filed Form 1040, divide the amount on line 63 by the amount on line 43.

Taxable interestIf you received any interest that is subject to income taxes, enter the total amount received here. SingleIf you are divorced, legally separated or unmarried as of the last day of the year you should use this status. Federal income tax withheldEnter the total of all federal income tax that you expect to have withheld from your pay throughout the year. The filing status for this option is "married filing separately". Capital gains tax rates are lower than ordinary income tax rates, and are calculated separately. Earned income creditIf you qualify for earned income credit, enter that amount here.

If you filed Form 1040, divide the amount on line 63 by the amount on line 43. It is calculated as your total income minus your standard deduction and your deduction for exemptions. Everybody should know how to arrive at his or her tax bracket, and use it to its maximum advantage. Married filing separatelyIf you are married, you have the choice to file separate returns. Unemployment compensationIf you collected any unemployment compensation, it is considered taxable income. Total income you received from wages, salaries and tips.

Standard deductionThis is a standard amount, which varies by your filing status, which you are allowed to deduct from your income before calculating your income tax. We will use this amount to calculate your total refund or amount you may owe. Once you do that division, you'll arrive at your effective tax rate, which will give you a good idea of where most of your income is being taxed. It's an important number that you'll need to know before you make any tax-based decisions. If you filed Form 1040A, divide the amount on line 38 by the amount on line 27.