|
|
|
|
|
|
|
|
Standard
Deductions
|
2005
|
2004
|
2003
|
2002
|
2001
|
2000
|
|
Joiint or Qualifying Widow(er)
|
10,000
|
9,700
|
9,500
|
7,850
|
7,600
|
7,350
|
|
Single
|
5,000
|
4,850
|
4,750
|
4,700
|
4,550
|
4,400
|
|
Head of Household
|
7,300
|
7,150
|
7,000
|
6,900
|
6,650
|
6,450
|
|
Married Filing
Separately
|
5,000
|
4,850
|
4,750
|
3,925
|
3,800
|
3,675
|
|
Additional for
Elderly/Blind - Married
|
1,000
|
950
|
950
|
900
|
900
|
850
|
|
Additional for
Elderly/Blind - Unmarried
|
1,250
|
1,200
|
1,150
|
1,150
|
1,100
|
1,100
|
|
Taxpayer Claimed as
Dependent
|
800 or 250 + Individual's Earned Income
|
800 or 250 + Individual's Earned Income
|
Greater of 750 or 250 plus individual's earned income
|
750
|
750
|
700
|
|
Personal/Dependent
Exemption
|
3,200
|
3,100
|
3,050
|
3,000
|
2,900
|
2,800
|
|
Unearned Income
Without Kiddie Tax
|
1,600
|
1,600
|
1,500
|
1,500
|
1,500
|
1,400
|
|
Adoption
Credit-Special Needs Children / Start of Phase Out
|
10,630 / 159,450
|
|
|
|
|
|
|
Child Tax Credit
|
11,000
|
|
|
|
|
|
|
Taxable Income Not
Over
|
10%
|
10%
|
|
|
|
|
|
Joint or Qualifying
Widower
|
14,600
|
14,300
|
14,000
|
|
|
|
|
Single
|
7,300
|
7,150
|
7,000
|
|
|
|
|
Head of Household
|
10,450
|
10,200
|
10,000
|
|
|
|
|
Married Filing
separately
|
7,300
|
7,150
|
7,000
|
|
|
|
|
Beginning of 15%
|
15%
|
15%
|
15%
|
|
|
|
|
Joint or Qualifying
Widower
|
14,601
|
14,301
|
14,001
|
|
|
|
|
Single
|
7,301
|
7,301
|
7,001
|
|
|
|
|
Head of Household
|
10,451
|
10,201
|
10,001
|
|
|
|
|
Married Filing
separately
|
7,301
|
7,151
|
7,001
|
|
|
|
|
Beginning of 25%
27% /27.5% /28% Bracket
|
25%
|
25%
|
25%
|
27%
|
27.5%
|
28%
|
|
Joint or Qualifying
Widower
|
59,401
|
58,100
|
56,800
|
46,700
|
45,200
|
43,850
|
|
Single
|
29,701
|
29,050
|
28,400
|
27,950
|
27,050
|
26,250
|
|
Head of Household
|
39,801
|
38,900
|
38,050
|
37,450
|
36,250
|
35,150
|
|
Married Filing
separately
|
29,701
|
29,050
|
28,400
|
23,350
|
22,600
|
21,925
|
|
Beginning of 28%
30% /30.5% /31% Bracket
|
28%
|
28%
|
28%
|
30%
|
30.5%
|
31%
|
|
Joint or Qualifying
Widow(er)
|
119,951
|
117,250
|
114,650
|
112,850
|
109,250
|
105,950
|
|
Single
|
71,950
|
70,350
|
68,800
|
67,700
|
65,550
|
63,550
|
|
Head of Household
|
102,801
|
100,500
|
98,250
|
96,700
|
93,650
|
90,800
|
|
Married Filing
separately
|
59,976
|
58,625
|
57,325
|
56,425
|
54,625
|
52,975
|
|
Beginning of 33%
35% /35.5% /36% Bracket
|
33%
|
33%
|
33%
|
35%
|
35.5%
|
36%
|
|
Joint or Qualifying
Widower
|
182,800
|
178,650
|
174,700
|
171,950
|
166,500
|
161,450
|
|
Single
|
150,151
|
146,750
|
143,500
|
141,250
|
136,750
|
132,600
|
|
Head of Household
|
166,451
|
162,700
|
159,100
|
156,600
|
151,650
|
147,050
|
|
Married Filing
separately
|
91,401
|
89,325
|
87,350
|
85,975
|
83,250
|
80,725
|
|
Beginning of 35%
38.6% /39.1% /39.6% Bracket
|
35%
|
35%
|
35%
|
38.6%
|
39.1%
|
39.6%
|
|
Joint or Qualifying
Widow(er)
|
326,451
|
319,100
|
311,950
|
307,050
|
297,300
|
288,350
|
|
Single
|
326,451
|
|
|
|
|
|
|
Head of Household
|
326,451
|
|
|
|
|
|
|
Married Filing
separately
|
163,226
|
319,100
|
159,100
|
153,525
|
148,675
|
144,175
|
|
12 Month Capital Gains Rate
|
|
>5/5/03 5% / 15%
|
>5/5/03 5% / 15%
|
20%/10%
|
20%/10%
|
20%/10%
|
|
5 Year Capital
Gains Rate
|
|
>5/5/03 Eliminated
|
>5/5/03 Eliminated
|
18% / 8%
|
18% / 8%
|
18% / 8%
|
|
Beginning/End of Personal Exemption Phase-out (AGI)
|
|
Joint or Qualifying
Widow(er)
|
218,950 / 341,450
|
214,050 / 336,550
|
209,250 / 331,750
|
206,000 / 328,500
|
199,450 / 321,950
|
193,400 / 315,900
|
|
Single
|
145,950 / 304,950
|
142,700 / 265,200
|
139,500 / 262,000
|
137,300 / 259,800
|
132,950 / 255,450
|
128,950 / 251,450
|
|
Head of Household
|
182,450 / 304,950
|
178,350 / 300,850
|
174,400 / 296,900
|
171,650 / 294,150
|
166,200 / 288,700
|
161,150 / 283,650
|
|
Married Filing
separately
|
109,475 / 170,725
|
107,025 / 168,275
|
104,625 / 165,875
|
103,000 / 164,250
|
99,725 / 160,975
|
96,700 / 157,950
|
|
Beginning of Itemized Deduction Phase-out (AGI)
|
|
Joint, Single, Head
of Household
|
145,950
|
142,700
|
139,500
|
137,300
|
132,950
|
128,950
|
|
Married Filing
Separately
|
72,975
|
71,350
|
69,750
|
68,650
|
66,475
|
64,475
|
|
FICA/SE Tax
Information
|
|
FICA/SE Tax Max
Earnings
|
90,000
|
87,900
|
87,000
|
84,900
|
80,400
|
72,600
|
|
FICA (OASDI and HI)
Tax Rate (Employee)
|
6.20%
|
6.20%
|
6.20%
|
6.20%
|
6.20%
|
6.20%
|
|
FICA - Medicare Tax
|
1.45%
(No Limit
|
1.45%
(No Limit)
|
1.45%
(No Limit)
|
1.45%
(No Limit)
|
1.45%
(No Limit)
|
1.45%
(No Limit)
|
|
SE Tax Rate
|
15.30%
|
15.30%
|
15.30%
|
15.30%
|
15.30%
|
15.30%
|
|
California UI Rate
|
1.5% - 6.2%
|
1.5% - 6.2%
|
|
|
|
|
|
Taxable Wage Limit
|
7,000
|
7,000
|
7,000
|
|
|
|
|
New Employer UI
|
3.4%
|
3.4%
|
3.4%
|
|
|
|
|
Employment Training
Tax
|
0.1%
|
0.1%
|
0.1%
|
|
|
|
|
State Disability
Insurance
|
1.08% Max 79,418
|
1.18% Max 68,829
|
|
|
|
|
|
Auto Standard Mileage Allowances
|
|
Business
|
0.405
|
0.375
|
0.360
|
.365
|
.345
|
.325
|
|
Charity Work
|
0.140
|
0.140
|
0.140
|
.140
|
.140
|
.140
|
|
Moving Expense
Mileage
|
0.150
|
0.140
|
0.120
|
.130
|
.120
|
.100
|
|
Medical/Moving
|
0.150
|
0.140
|
0.120
|
.130
|
.120
|
.100
|
|
College Bond Interest Exclusion
|
|
Single/Head of
Household
|
61,200 - 76,200
|
59,850 - 74,850
|
58,500-73,500
|
$57,600-72,600
|
$55,750-70,750
|
$54,100-69100
|
|
Joint
|
91,850 - 121,850
|
89,750 - 119,750
|
87,750-117,750
|
$86,400-116,400
|
$83,650-113,650
|
$81,100-111,100
|
|
Married Filling
Separately
|
61,200 - 76,200
|
59,850 - 74,850
|
0
|
0
|
0
|
0
|
|
Education Savings Account (Ed. IRA)
|
|
Single/Head of
Household/Married Filing Separate
|
|
$95-000-110,000
|
$95-000-110,000
|
$95-000-110,000
|
$95,000-110,000
|
$95,000-110,000
|
|
Joint
|
|
$190,000-220,000
|
$190,000-220,000
|
$190,000-220,000
|
150,000-160,000
|
150,000-160,000
|
|
Hope/Lifetime Learning Credits
|
|
Single/Head of
Household
|
43,000
|
42,000
|
$41,000-51,000
|
$41,000-51,000
|
$40,000-50,000
|
$40,000-50,000
|
|
Joint
|
87,000
|
85,000
|
$83,000-103,000
|
$82,000-102,000
|
$80,000-100,000
|
$80,000-100,000
|
|
Married Filing Seperately
|
43,000
|
42,000
|
|
0
|
0
|
0
|
|
Education Loan Interest Deduction Maximum Interest
Deduction = $2,500
|
|
Single/Head of
Household
|
53,600-69,700
|
50,000-65,000
|
50,000-65,000
|
$50,000-65,000
|
$40,000-55,000
|
$40,000-55000
|
|
Joint
|
107,200-139,400
|
100,000-130,000
|
100,000-130,000
|
$100,000-130,000
|
$60,000-75000
|
$60,000-75000
|
|
Married Filing
Separately
|
|
|
0
|
0
|
0
|
0
|
|
Higher Education Deduction
|
|
Single
|
65,000-80,001
|
59,850 - 74,850
|
|
$65,000
|
0
|
0
|
|
Joint
|
130,000-160,001
|
89,750 - 119,750
|
|
$130,000
|
0
|
0
|
|
Married Filing
Separately
|
|
59,850 - 74,850
|
|
0
|
0
|
0
|
|
Luxury Auto Depreciation Limits (non-electric)
|
|
First Year
|
|
Terminated 12/31/02
|
Terminates 12/31/02
|
TBA
|
3,060
|
3,060
|
|
Second Year
|
|
Terminated 12/31/02
|
Terminates 12/31/02
|
TBA
|
4,900
|
4,900
|
|
Third Year
|
|
Terminated 12/31/02
|
Terminates 12/31/02
|
TBA
|
2,950
|
2,950
|
|
Fourth Year and
Thereafter
|
|
Terminated 12/31/02
|
Terminates 12/31/02
|
TBA
|
1,775
|
1,775
|
|
Retirement Savings Limit Employee Contributions
|
|
Individual Retirement
- Under 50
|
4,000
|
3,000
|
3,000
|
3,000
|
2,000
|
2,000
|
|
Individual Retirement
- Over 50
|
4,500
|
3,500
|
3,500
|
3,500
|
2,000
|
2,000
|
|
Spousal Retirement
|
4,000
|
3,000
|
3,000
|
3,000
|
2,000
|
2,000
|
|
Combined Married IRA
|
8,000 to 9,000
|
6,000 to 7,000
|
6,000 to 7,000
|
6,000 to 7,000
|
4,000
|
4.000
|
|
IRA Adjusted Gross
Earnings Phase Outs Joint
|
70,000 - 80,000
|
65,000 - 75,000
|
60,000 - 70,000
|
54,000 - 64,000
|
53,000 - 63,000
|
52,000 - 62,000
|
|
Single, Head of
Household
|
50,000 - 60,000
|
45,000 - 55,000
|
40,000 - 50,000
|
34,000 / 44,000
|
33,000 / 43,000
|
32,000 / 42,000
|
|
Married Filing
Separately
|
|
|
0 - 10,000
|
0 / 10,000
|
0 / 10,000
|
0 / 10,000
|
|
Max Employee Deferral
Deductible 401(k) and 403(b)
|
14,000 / 18,000
|
13,000 / 16,000
|
12,000 / 14,000
|
11,000 / 12,000
|
10,500
|
10,500
|
|
457 Annual Elective
Deferral Limit (State & Local Goverments
& Tax Exempt Organizations
|
14,000
|
13,000
|
12,000
|
11,000
|
8,500
|
8,000
|
|
SEP (Employee
Deferral)
|
14,000
|
13,000
|
12,000
|
11,000
|
10,500
|
10,500
|
|
SEP (Employer
Contributions)
|
Lesser of 25% of Compensation or $200,000 (20% of
Self-employed Income
|
Lesser of 25% of Compensation or $200,000 (20% of
Self-employed Income
|
Lesser of 25% of Compensation or $200,000 (20% of
Self-employed Income
|
Lesser of 15% of Compensation or $40,000 (13.0435% of
Self-employed Income
|
Lesser of 15% of Compensation or $35,000 (13.0435% of
Self-employed Income
|
Lesser of 15% of Compensation or $35,000 (13.0435% of
Self-employed Income
|
|
SEP Compensation Threshold
|
450
|
450
|
450
|
450
|
450
|
450
|
|
SIMPLE Plan Employee
Deferral
|
10,000 / 12,000
|
9,000 / 10,500
|
8,000 / 9,000
|
7,000
|
6,500
|
6,000
|
|
SIMPLE IRA Plan
|
100% match up to 3%
of Compensation (not limited) or 2% of Compensation (Limited to $200,000)
|
100% match up to 3% of Compensation (not limited) or
2% of Compensation (Limited to $200,000)
|
100% match up to 3% of Compensation (not limited) or
2% of Compensation (Limited to $200,000)
|
100% match up to 3%
of Compensation (not limited) or 2% of Compensation (Limited to $200,000)
|
100% match up to 3% of Compensation (not limited) or
2% of Compensation (Limited to $170,000)
|
100% match up to 3% of Compensation (not limited) or
2% of Compensation (Limited to $170,000)
|
|
Defined Contribution
Plans (Employer)
|
42,000
|
41,000
|
40,000
|
40,000
|
35,000
|
30,000
|
|
Annual Compensation
Taken into Account
|
210,000
|
205,000
|
200,000
|
200,000
|
170,000
|
170,000
|
|
Annual Benefit LImit for Defined Benefit Plan
|
170,000
|
165,000
|
160,000
|
160,000
|
140,000
|
135,000
|
|
Dollar Limitation
Definition of Key Employee
|
135,000
|
130,000
|
|
|
|
|
|
Definition of
"Control Employee" for Fringe Benefit Valuation Purposes
(Under Sec 408(k)(2)(C)
|
85,000
|
80,000
|
|
|
|
|
|
Highly Compensated
Employee Definition
|
95,000
|
90,000
|
90,000
|
90,000
|
85,000
|
85,000
|
|
Educational IRA
|
|
|
|
2,000
|
500
|
500
|
|
Self Employed
Health Insurance Deduction
|
100%
|
100%
|
100%
|
70%
|
60%
|
60%
|
|
Section 179 Deductionn
|
105,000
|
102,000
|
100,000
|
24,000
|
24,000
|
20,000
|
|
Taxable Social Security Income Thresholds
|
|
Joint - Less than
32,000
|
|
0%
|
0%
|
0%
|
0%
|
0%
|
|
- Between 32,000 and
44,000
|
|
50%
|
50%
|
50%
|
50%
|
50%
|
|
- Over 44,000
|
|
85%
|
85%
|
85%
|
85%
|
85%
|
|
Single - Less than
25,000
|
|
0%
|
0
|
0%
|
0%
|
0%
|
|
- Between 25,000 and
34,000
|
|
50%
|
50%
|
50%
|
50%
|
50%
|
|
- Over 34,000
|
|
85%
|
85%
|
85%
|
85%
|
85%
|
|
Earnings Ceiling for Social Security
|
|
Under Age 65
|
|
11,640
|
11,520
|
11,280
|
10,680
|
10,080
|
|
Age 65-69
|
|
Unlimited
|
Unlimited
|
Unlimited
|
Unlimited
|
Unlimited
|
|
Age 70 and Above
|
|
Unlimited
|
Unlimited
|
Unlimited
|
Unlimited
|
Unlimited
|
|
Maximum Social
Security Benefits (mo)
|
|
|
|
1,660
|
1,536
|
1,433
|
|
Medical Savings Account (MSA) Maximum Contribution
Range
|
|
Family Coverage
|
3,500 / 5,250
|
5,150 / 6,300
|
3,350 / 5,050
|
2,475-3,713 (Est.)
|
2,400-3,600
|
2,325-3,487
|
|
Individual Coverage
|
1,750 / 2,650
|
2,600 / 3,450
|
1,700 / 2,500
|
1,073-1,625 (Est)
|
1,040-1,560
|
1,007-1,495
|
|
Long Term Care Premiums Maximum Deductible Amount
|
|
Age 40 and under (at
year end)
|
270
|
260
|
250
|
240 (Est)
|
230
|
220
|
|
Age 41-50 (at year
end)
|
510
|
490
|
470
|
450 (Est)
|
430
|
410
|
|
Age 51-60 (at year
end)
|
1,020
|
980
|
940
|
900 (Est)
|
860
|
820
|
|
Age 61-70 (at year
end)
|
2,720
|
2,600
|
2,510
|
2,390 (Est)
|
2,290
|
2,200
|
|
Over age 70 (at year
end)
|
3,400
|
3,250
|
3,130
|
2,990 (Est)
|
2,860
|
2,750
|
|
Alternative
Minimum Tax Rates
|
|
<175,000=26% / 28%
|
|
TBA
|
26%/28%
|
26%/28%
|
|
Estimated Tax Payments (AGI > $150,000)
|
|
% of Prior Year Tax
|
|
110%
|
110%
|
112%
|
110%
|
108.6%
|
|
% of Current Year Tax
|
|
90%
|
90%
|
90%
|
90%
|
90%
|
|
Earned Income
|
|
Earned Income Amount
- One
|
7,830
|
|
|
|
|
|
|
Earned Income Amount
- Two or More
|
11,000
|
|
|
|
|
|
|
Earned Income Amount
- None
|
5,220
|
|
|
|
|
|
|
Maximum Amount of
Credit - One
|
2,662
|
|
|
|
|
|
|
Maximum Amount of
Credit - Two or More
|
4,400
|
|
|
|
|
|
|
Maximum Amount of
Credit - None
|
399
|
|
|
|
|
|
|
Gift and Estate Tax
|
|
Unified Credit
Equivalent
|
|
1,500,000
|
1,000,000
|
1,000,000
|
675,000
|
675,000
|
|
Annual Gift Tax Exclusion
|
11,000
|
11,000
|
11,000
|
11,000
|
10,000
|
10,000
|
|
|
