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Index of Applicable Federal Rates
--This page contains data for several years. Please watch all dates carefully.
Contents
Corporate Income Tax
Rates--Including rates for personal service corporations, personal
holding companies, and accumulated earnings tax.
Miscellaneous Business Data--Section 179 expense
limits, more
2004--Individual Income Tax Rates, Other Data
Prior Years--
Individual Income Tax Rates--2003 rates for
individuals and trusts.
Individual Income Tax Rates--2002 rates for
individuals and trusts.
Personal Exemption and Standard Deduction--Personal
exemptions, standard deduction, phaseout rules for exemptions and itemized
deductions.
Corporate Income Tax Rates--2004, 2003, 2002, 2001, 2000
Taxable income over Not over Tax rate
$ 0 $ 50,000 15%
50,000 75,000 25%
75,000 100,000 34%
100,000 335,000 39%
335,000 10,000,000 34%
10,000,000 15,000,000 35%
15,000,000 18,333,333 38%
18,333,333 .......... 35%
Personal Service Corporations
Personal service corporations are subject to a flat tax of 35% regardless of their income.Personal Holding Company
Personal holding companies are subject to an additional tax on any undistributed personal holding company income. (Code Sec. 541)
Year Rate 2005 15.0% 2004 15.0% 2003 15.0% 2002 38.6% 2001 39.1% 2000 and prior years 39.6%
Accumulated Earnings Tax
In addition to the regular tax, a corporation may be liable for an additional tax on accumulated taxable income in excess of $250,000 ($150,000 for personal service corporations). (Code Sec. 531)
Year Rate 2005 15.0% 2004 15.0% 2003 15.0% 2002 38.6% 2001 39.1% 2000 and prior years 39.6%
Miscellaneous Business Data
Maximum Section 179 Expense Deduction
2004 2003 2002 2001 2000 1999
$102,000 $100,000 $24,000 $24,000 $20,000 $19,000
Phaseout--$410,000 for 2004; $400,000 for 2003; $200,000 for prior years.
Self-Employed Health Insurance Deduction
2004 2003 2002 2001 2000 1999
100% 100% 70% 60% 60% 60%
Tax Rate Schedules for Individuals and Trusts--2004
Single Taxpayers--2004
Taxable income: Tax: Over But not over Tax +% On amount over $ 0 $ 7,150 $ 0.00 10 $ 0 7,150 29,050 715.00 15 7,150 29,050 70,350 4,000.00 25 29,050 70,350 146,750 14,325.00 28 70,350 146,750 319,100 35,717.00 33 146,750 319,100 ....... 92,592.50 35 319,100
Married Individuals Filing Joint--2004
Taxable income: Tax: Over But not over Tax +% On amount over $ 0 $ 14,300 $ 0.00 10 $ 0 14,300 58,100 1,430.00 15 14,300 58,100 117,250 8,000.00 25 58,100 117,250 178,650 22,787.50 28 117,250 178,650 319,100 39,979.50 33 178,650 319,100 ....... 86,328.00 35 319,100
Married Individuals Filing Separate--2004
Taxable income: Tax: Over But not over Tax +% On amount over $ 0 $ 7,150 $ 0.00 10 $ 0 7,150 29,050 715.00 15 7,150 29,050 58,625 4,000.00 25 29,050 58,625 89,325 11,393.75 28 58,625 89,325 159,550 19,989.75 33 89,325 159,550 ....... 43,164.00 35 159,550
Heads Of Households--2004
Taxable income: Tax: Over But not over Tax +% On amount over $ 0 $ 10,200 $ 0.00 10 $ 0 10,200 38,900 1,020.00 15 10,200 38,900 100,500 5,325.00 25 38,900 100,500 162,700 20,725.00 28 100,500 162,700 319,100 38,141.00 33 162,700 319,100 ....... 89,753.00 35 319,100
Estates And Trusts--2004
Taxable income: Tax: Over But not over Tax +% On amount over $ 0 $1,950 15 $ 0 1,950 4,600 $ 292.50 25 1,950 4,600 7,000 955.00 28 4,600 7,000 9,550 1,627.00 33 7,000 9,550 ..... 2,468.50 35 9,550
Long-Term Capital Gains and Qualifying Dividends--2004
For taxpayers in the 10% or 15% bracket--5% For taxpayers in higher brackets--15% Tax on unrecaptured Sec. 1250 gain--25% Capital gain rate on collectibles--28%
Standard Deduction--2004
Filing Status Standard Deduction Married filing joint and surviving spouses $9,700 Heads of Household 7,150 Single individuals 4,850 Married, filing separate 4,850 Dependent No more than the greater of $800 or $250 plus the individual's earned income Additional standard deduction for aged and blind--$950 each ($1,200 if individual is unmarried and not surviving spouse)
Itemized Deduction Phaseout--2004
All filing status but married separate--$142,700; Married, separate--$71,350
Personal Exemption--2004
Amount--$3,100
Phaseout of Personal Exemption--
Filing Status AGI Begin Phaseout AGI Fully Phased Out Married, filing joint/surviving spouse $214,050 $336,550 Heads of household 178,350 300,850 Single 142,700 265,200 Married, filing separate 107,025 168,275
Alternative Minimum Tax--2004
First $175,000 ($87,500 married, separate) of Alternative Minimum Taxable Income 26% Over $175,000 of AMTI (Alternative Minimum Taxable Income) 28% Exemptions: Joint Filers $58,000 Married, separate 29,000 Single (and head of household) 40,250 Estates & Trusts 22,500 Exemption Phaseout: 25% of amount AMTI exceeds: $150,000 for married, joint and surviving spouses $112,500 single (and head of household) $75,000 married, filing separate
Hope and Lifetime Learning Credits Phaseout--2004
Modified adjusted gross income, $85,000 joint return; $42,000 all others.
Interest on Education Loans--2004
Maximum interest deduction--$2,500
Modified adjusted gross income phaseout range--
Married, joint, $100,000--$130,000
All other filing status, $50,000--$65,000
Savings Bond/Higher Education Expense Exclusion--2004
Modified adjusted gross income phaseout
range--
Married, joint, $89,750--$119,750
All other filing status, $59,850--$74,850
Qualified Transportation Fringe Benefit Exclusion--2004
Commuter highway vehicle and transit
pass--$100
Qualified parking--$195
Miscellaenous--2004
Annual Exclusion for Gifts--$11,000
Annual Exclusion for Gifts to Spouse not a Citizen--$114,000
Interest on Certain Portion of Estate Tax Payable in Installments (Sec.
6166; 2% portion)--$1,140,000
Valuation of Qualified Real Property in Decendent's Gross Estate (Sec.
2032A)--$850,000
Excessive Investment Income for Earned Income Tax Credit--$2,650
Unearned Income of Minor Child (Kiddie Tax)--$800 ($8,000 for parental
election)
Adoption Credit--2004
Maximum credit for child with special
needs--$10,390
Other adoptions, qualified expenses up to $10,390
Phaseout range, modified adjusted gross income--$155,860 to $195,860
Tax Rate Schedules for Individuals and Trusts--2003
Single Taxpayers--2003
Taxable income: Tax: Over But not over Tax +% On amount over $ 0 $ 7,000 $ 0.00 10 $ 0 7,000 28,400 700.00 15 7,000 28,400 68,800 3,910.00 25 28,400 68,800 143,500 14,010.00 28 68,800 143,500 311,950 34,926.00 33 143,500 311,950 ....... 90,514.50 35 311,950
Married Individuals Filing Joint--2003
Taxable income: Tax: Over But not over Tax +% On amount over $ 0 $ 14,000 $ 0.00 10 $ 0 14,000 56,800 1,400.00 15 14,000 56,800 114,650 7,820.00 25 56,800 114,650 174,700 22,282.50 28 114,650 174,700 311,950 39,096.50 33 174,700 311,950 ....... 84,389.00 35 311,950
Married Individuals Filing Separate--2003
Taxable income: Tax: Over But not over Tax +% On amount over $ 0 $ 7,000 $ 0.00 10 $ 0 7,000 28,400 700.00 15 7,000 28,400 57,325 3,910.00 25 28,400 57,325 87,350 11,141.25 28 57,325 87,350 155,975 19,548.25 33 87,350 155,975 ....... 42,194.50 35 155,975
Heads Of Households--2003
Taxable income: Tax: Over But not over Tax +% On amount over $ 0 $ 10,000 $ 0.00 10 $ 0 10,000 38,050 1,000.00 15 10,000 38,050 98,250 5,207.50 25 38,050 98,250 159,100 20,257.50 28 98,250 159,100 311,950 37,295.50 33 159,100 311,950 ....... 87,736.00 35 311,950
Estates And Trusts--2003
Taxable income: Tax: Over But not over Tax +% On amount over $ 0 $1,900 15 $ 0 1,900 4,500 $ 285.00 25 1,900 4,500 6,850 935.00 28 4,500 6,850 9,350 1,593.00 33 6,850 9,350 ..... 2,418.00 35 9,350
Long-Term Capital Gains and Qualifying Dividends--2003
For taxpayers in the 10% or 15% bracket--5% For taxpayers in higher brackets--15% Note: These lower rates apply to capital gains on sales after May 5, 2003; 20%, 10%, and 8% rates apply to sales on or before May 5. Unrecaptured Sec. 1250 gain--25% Collectibles--28%
Alternative Minimum Tax--2003
First $175,000 ($87,500 married, separate) of Alternative Minimum Taxable Income 26% Over $175,000 of AMTI (Alternative Minimum Taxable Income) 28% Exemptions: Joint Filers $58,000 Married, separate 29,000 Single 40,250 Estates & Trusts 22,500 Exemption Phaseout: 25% of amount AMTI exceeds: $150,000 for married, joint and surviving spouses $112,500 single $75,000 married, filing separate
Tax Rate Schedules for Individuals and Trusts--2002
Single Taxpayers--2002
Taxable income: Tax: Over But not over Tax +% On amount over $ 0 $ 6,000 $ 0.00 10 $ 0 6,000 27,950 600.00 15 6,000 27,950 67,700 3,892.50 27 27,950 67,700 141,250 14,625.00 30 67,700 141,250 307,050 36,690.00 35 141,250 307,050 ....... 94,720.00 38.6 307,050
Married Individuals Filing Joint--2002
Taxable income: Tax: Over But not over Tax +% On amount over $ 0 $ 12,000 $ 0.00 10 $ 0 12,000 46,700 1,200.00 15 12,000 46,700 112,850 6,405.00 27 46,700 112,850 171,950 24,265.50 30 112,850 171,950 307,050 41,995.50 35 171,950 307,050 ....... 89,280.50 38.6 307,050
Married Individuals Filing Separate--2002
Taxable income: Tax: Over But not over Tax +% On amount over $ 0 $ 6,000 $ 0.00 10 $ 0 6,000 23,350 600.00 15 6,000 23,350 56,425 3,202.50 27 23,350 56,425 85,975 12,132.75 30 56,425 85,975 153,525 20,997.75 35 85,975 153,525 ....... 44,640.25 38.6 153,525
Heads Of Households--2002
Taxable income: Tax: Over But not over Tax +% On amount over $ 0 $ 10,000 $ 0.00 10 $ 0 10,000 37,450 1,000.00 15 10,000 37,450 96,700 5,117.50 27 37,450 96,700 156,600 21,115.00 30 96,700 156,600 307,050 39,085.00 35 156,600 307,050 ....... 91,742.50 38.6 307,050
Estates And Trusts--2002
Taxable income: Tax: Over But not over Tax +% On amount over $ 0 $1,850 15 $ 0 1,850 4,400 $ 277.50 27 1,850 4,400 6,750 966.00 30 4,400 6,750 9,200 1,671.00 35 6,750 9,200 ..... 2,528.50 38.6 9,200
Personal Exemption and Standard Deduction
Personal Exemptions
2003 . . . . . . . . $3,0502002 . . . . . . . . $3,000
Standard Deduction
2003 2002 2001 2000 Married, filing joint $9,500 $7,850 $7,600 $7,350 Head of household 7,000 6,900 6,650 6,450 Single 4,750 4,700 4,550 4,400 Married, filing separate 4,750 3,925 3,800 3,675 Surviving spouse 7,950 7,850 7,600 7,350For 2003, 2002, and 2001, taxpayers who can be claimed as a dependent on another person's tax return (e.g., a child) are limited to the greater of $750 or the sum of $250 and the individual's earned income. For 1998 through 2000 the applicable amounts are $700 and $250.
The standard deduction is increased for taxpayers who are aged and/or blind. For 2003 the additional deduction is increased for the aged and blind by $950 each. The amounts are increased to $1,150 if the individual is also unmarried and not a surviving spouse.
Phaseout of Personal Exemptions--2003
Phaseout Begins Phaseout Completed Married, filing joint $209,250 $331,750 Head of household 174,400 296,900 Single 139,500 262,000 Married, filing separate 104,625 165,875 Surviving spouse 209,250 331,750
Phaseout of Personal Exemptions--2002
Phaseout Begins Phaseout Completed Married, filing joint $206,000 $328,500 Head of household 171,650 294,150 Single 137,300 259,800 Married, filing separate 103,000 164,250 Surviving spouse 206,000 328,500
Phaseout of Personal Exemptions--2001
Phaseout Begins Phaseout Completed Married, filing joint $199,450 $321,950 Head of household 166,200 288,700 Single 132,950 255,450 Married, filing separate 99,725 160,975 Surviving spouse 199,450 321,950
Limit on Itemized Deductions
Itemized deductions are reduced by 3% of a taxpayer's adjusted gross income (AGI) that exceeds a threshold amount. The threshold for 2003 is $139,500 ($69,750 married, filing separate). The reduction in itemized deductions is limited to 80% and certain deductions (e.g., medical expenses) are not subject to the reduction.For 2002 the threshold is $137,300 ($68,650 married, filing separate).
For 2001 the threshold is $132,950 ($66,475 married, filing separate).
For 2000 the threshold is $128,950 ($64,475 married, filing separate).
For 1999 the threshold is $126,600 ($63,300 married, filing separate).
Miscellaneous Individual Data
Savings Bond Exclusion for Higher Education Expenses
For 2003 the exclusion of interest earned on U.S. Savings Bonds and used for higher education expenses begins to phase out for modified AGI of $87,750 on joint returns ($58,500 for other filing status) and is completely phased out for taxpayers with modified AGI of $117,750 or more ($73,500 for other filing status).For 2002 the exclusion is phased out for AGIs between $86,400 and $116,400 on joint returns and $57,600 and $72,600 for other filing status.
For 2001 the exclusion is phased out for AGIs between $83,650 and $113,650 on joint returns and $55,750 and $70,750 for other filing status.
For 2000 the exclusion is phased out for AGIs between $81,100 and $111,100 on joint returns and $54,100 and $69,100 for other filing status.
Kiddie Tax
A child under age 14 is generally taxed at his parents' rate on net unearned income (e.g., interest, dividends, etc.). For 2003 the amount that is used to reduce the net unearned income reported on the child's return that is subject to the kiddie tax rule is $750. In 2002 and 2001 it was $750.The alternative minimum tax exemption for a child under age 14 for 2003 is the sum of the child's earned income plus $5,600 ($5,500 in 2002).
Election to Report Income on Parent's Return
If your child's gross income is less than a certain amount and consists only of dividends and interest, you can elect to report the amount on your return. For 2003, 2002 and 2001, the interest and dividend income must be more than $750, but less than $7,500.
Excessive Investment Income
Taxpayers with excessive investment income cannot qualify for the earned income credit. For 2003 the maximum amount of investment income is $2,600; it was $2,550 for 2002 and $2,450 in 2001.
Notice of Large Gifts
For tax years beginning in 2003, recipients of gifts from certain foreign persons may have to report gifts under Sec. 6039F if the total value received in a taxable year exceeds $11,827; in 2002 it was $11,642; in 2001 it was $11,273.
Copyright © 2001 RJ Simon, LLC. All rights reserved.
Revised: March 22, 2006
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