Federal Tax Summary Info
| The following
represents our "quick reference" section for those rates and amounts you need on
specific occasions. Please remember that tax laws (and these amounts) are
continually changing and this listing is only to be used as a starting reference point.
If you need professional advice or further elaboration on a number listed below,
please call our office.
If you do not find the information you need in the list below, you can find an even larger database of tax reference information at smbiz.com - an excellent resource for small businesses.
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Individual Deductions and Credits |
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2003 |
2004 |
| Standard Deduction, Joint Return And Surviving Spouse | $9,500 | $9,700 |
| Standard Deduction, Head of Household | $7,000 | $7,150 |
| Standard Deduction, Single | $4,750 | $4,850 |
| Standard Deduction, Married Filing Separate | $4,750 | $4,850 |
| Personal exemption | $3,050 | $3,100 |
| Taxpayer Claimed As A Dependent | $750 | $800 |
| Additional Standard Deduction For Blindness or Age, Single | $1,150 | $1,200 |
| Additional Standard Deduction For Blindness or Age, Married | $950 | $950 |
| Itemized Deduction Income Threshold (deductions reduced by 3% of amount your adjusted gross income exceeds threshold) | $139,500 | $142,700 |
| Maximum IRA Deduction | $3,000 | $3,000 |
| Additional IRA Deduction For Age 50 and Over | $500 | $500 |
| Hope Scholarship Credit Per Eligible Student (100% of first $1,000 in eligible expenses and 50% of next $1,000) | $1,500 | $1,500 |
| Lifetime Learning Credit (20% of first $5,000 in expenses) | $1,000 | $1,000 |
| Maximum Contribution To Education Savings Account (previously Education IRA) | $2,000 | $2,000 |
| Maximum Child Tax Credit | $1,000 | $1,000 |
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Business Deductions |
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2003 |
2004 |
| Section 179 Deduction | $100,000 | $102,000 |
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Dividend Tax Rates |
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2003 |
2004 |
| Tax Rate On Dividends Received From U.S. And Some Qualified Foreign Companies | 15% | 15% |
| Tax Rate On Dividends For Low Income Taxpayers (10% and 15% Brackets) | 5% | 5% |
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Auto And Transportation Allowances |
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2003 | 2004 |
| Business Mileage Rate | .36 | .375 |
| Medical/Moving Mileage Rate | .12 | .14 |
| Charity Mileage Rate | .14 | .14 |
| Vehicle/Transit Pass Limit | $100 | $100 |
| Qualified Parking Limit | $190 | $195 |
| Inclusion
Amount For Leased Autos (smbiz.com)
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Federal Income Tax Schedules |
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| 2002 Individual Tax Rate Schedule | ||
| 2003 Individual Tax Rate Schedule | ||
| 1998-2002 Corporate Tax Rates | ||
| 2002
Estates and Trusts Tax Rates
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Social Security and Self-Employment Tax |
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2003 | 2004 |
| FICA Taxable Maximum Earnings | $87,000 | $87,900 |
| FICA Tax Rate On Employee | 6.2% | 6.2% |
| Tax on Self-Employment Earnings | 12.4% | 12.4% |
| Medicare Taxable Maximum Earnings | No Limit | No Limit |
| Medicare Tax Rate on Employee | 1.45% | 1.45% |
| Medicare Tax on Self-Employment Earnings | 2.9% | 2.9% |
| Social Security Earnings Cap - Recipients Under 65 | $11,520 | $11,640 |
| Social Security Earnings Cap - Recipients 65-69 * | No Limit | No Limit |
| Social Security Earnings Cap - Recipients Over 70 | No Limit | No Limit |
| Income Limit Before 50% Benefits Taxed, Single | $25,000 | $25,000 |
| Income Limit Before 50% Benefits Taxed, Joint | $32,000 | $32,000 |
| Income Limit Before 85% Benefits Taxed, Single | $34,000 | $34,000 |
| Income Limit Before 85% Benefits Taxed, Joint | $44,000 | $44,000 |
| For More Social Security Limits : SSA.gov | ||
| * While the earnings cap
was dropped for persons over 65 as of January 1, 2000, there remains
an earnings cap of ($30,720 in 2003 and $31,080 in 2004) during the
retiree's 65th year for those months prior to the actual birthday.
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Retirement Plan Amounts |
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2003 | 2004 |
| Limit on 401(k) Elective Deferrals | $12,000 | $13,000 |
| Allowable Catch-Up Contribution For Employees 50 and Over | $2,000 | $3,000 |
| Compensation Limit Under 401(a)(17), 404(I) and 408(k)(3)(C) | $200,000 | $205,000 |
| Deferral Limit Under A SIMPLE Plan | $8,000 | $9,000 |
| SIMPLE Plan Deferral Limit - Age 50 | $8,500 | $10,500 |
| Limit on Annual Benefit From A Defined Benefit Plan | $160,000 | $165,000 |
| Earnings Definition of Highly Compensated Employee | $90,000 | $90,000 |
| Limit on Deductible Contributions to Defined Contribution Plans | $40,000 | $41,000 |
| Compensation Limit To Trigger a SEP | $450 | $450 |
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Estate And Gift Amounts |
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2003 |
2004 |
| Annual Gift Exclusion | $11,000 | $11,000 |
| Lifetime Exclusion |
$1 million |
$1.5 million |
