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Tax Matters

 

Tax Information For Tax Year 1998

 

1. Single Tax Payer Rates

2. Married Tax Payer Rates filing joint return

3.Married Tax Payer Rates filing separate return

4. Head of Household

5. Standard Deductions

 

 

6. Personal Exemptions

7 .Standard Mileage Rates

8. Itemized Deductions Percentage Limitations

9. Capital Gains Rates

10. Depreciation 179 Deductions

 

 

 

SINGLE TAXPAYER RATES

  Taxable Income

Amount of Tax

Not over $24,650.00

15% of taxable income

Over $24,650 but not over $59,750

$3,697.50 plus 28% of the amount over $24,650

Over $59,750 but not over $124,650

$13,525.50 plus 31% of the amount over $59,750

Over $124,650 but not over 271,050

$33,644.50 plus 36%

Over $271,050

$86,348.50 plus 39.6% of the amount over $271,050

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MARRIED TAXPAYERS

filling JOINT returns

Taxable Income

Amount of Tax

Not over $42,350

15% of Taxable income

Over $42,350 but not over $102,300

$6,352.50 plus 28% of amount over $42,300

Over $102,300 but not over $155,950

$23,138.50 plus 31% of the amount over $102,300

Over $155,950 but not over $278,450

$39,770 plus 36% of the amount over $155,950

Over $278,450

$83,870 plus 39.6 of the amount over $278,450

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MARRIED TAXPAYERS

Filing SEPARATE returns

Taxable Income

Amount of Tax

Not over $21,175

15 % of taxable income

Over $21,175 but not over $51,150

$3,176.25 plus 28% of the amount over $21,175

Over$51,150 but not over $77,975

$11,569.25 plus 31% of the amount over $51,150

Over $77,975 but not over $139,225

$19,885 plus 36% of the amount over $77,975

Over $139,225

$41,935 plus 39.6% of the amount over $139,225

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HEADS OF HOUSEHOLD

Taxable Income

Amount of Tax

Not over $33,950

15% of taxable income

Over $33,950 but not over $87,700

$5,092.50 plus 28% of the amount over $33,950

Over $87,700 but not over $142,000

$20,142.50 plus 31% of the amount over $87,700

Over $142,000 but not over $278,450

$36,975.50 plus 36% of the amount over $142,000

Over $278,450

$86,097.50 plus 39.6% of the amount over $278,450

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STANDARD DEDUCTIONS

Basic

(Limited to greater of $700 or earned income for individuals who can be claimed as a dependent by another taxpayer

Single $4,250
Married filing separate $3,550
Married filing joint and surviving spouses $7,100
Head of household $6,250
Additional

(for 65 or over and / or blind)

Unmarried (not surviving spouse) $1,050
Married or surviving spouse (whether or not joint return) $850

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PERSONAL EXEMPTION

Exemption Amount $2,700
The exemption amount is faced out by 2% for each $2,700 or fraction ($1,350 or fraction for married filing separately) by which taxpayer's adjusted gross income exceeds:
$124,500 For single taxpayer
$93,400 For married filing separately
$186,800 For married filing joint and qualified widows and widowers
$155,650 For heads of household

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STANDARD MILEAGE RATES

Business use of Auto

$0.3250 a mile

Charitable

$0.14 a mile

Medical

$0.10 a mile

Moving expenses

$0.10 a mile

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ITEMIZED DEDUCTIONS PERCENTAGE LIMITATIONS

Medical expenses

7.5% of adjusted gross income - floor

Mortgage interest

No limitation

Real Estate Taxes (for homestead home)

No limitation

Net nonbusiness casualty losses

10% of adjusted gross income (after $100 per casualty limitation) - floor

Charitable contributions

50% of adjusted gross income - ceiling on deductible amount

Miscellaneous itemized deductions

2% of adjusted gross income - floor

Otherwise allowable itemized deductions

3% of adjusted gross income reduction for adjusted gross income over $124,500 ($62,250 for married filing separately); 80% maximum reduction

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CAPITAL GAINS TAX RATES

For assets sold after May 6, 1997 but before July 29, 1997
  • if held more than 12 months (long term)
20%
  • for filers in the 15% bracket
10%

For assets sold on or after July 29, 1997

  • If held more than 18 months
20%
  • for filers in the 15% bracket
10%
  • if held more than 12 months but not more than 18 months
28%
  • for filers in the 15% bracket
15%
For assets sold after December 31, 2000
  • If held for five year gain
18%
  • for filers in the 15% bracket
8%

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DEPRECIATION

  • The maximum Code Section 179 deduction for 1998 is $18,500

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