|
Tax brackets For 2001
Use these to help estimate federal income tax.
This does not include state or local taxes, or taxes on other bases
such as property, intangible taxes, sales taxes, payroll taxes, excise
taxes, gift taxes, etc.
Married filing jointly and surviving spouses
|
Taxable income
|
Tax
|
|
Up to $45,200
|
15% of taxable income
|
|
Over $45,200, but not over $109,250
|
$6,780 plus 27.5% of the excess over $45,200
|
|
Over $109,250, but not over $166,500
|
$24,393.75 plus 30.5% of the excess over
$109,250
|
|
Over $166,500, but not over $297,350
|
$41,855.00 plus 35.5% of the excess over
$166,500
|
|
Over $297,350
|
$88,306.75, plus 39.1% of the excess over
$297,350
|
Heads of household
|
Taxable income
|
Tax
|
|
Up to $36,250
|
15% of taxable income
|
|
Over $36,250, but not over $93,650
|
$5,272.50, plus 27.5% of the excess over
$36,250
|
|
Over $93,650, but not over $151,650
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$21,222.50, plus 30.5% of the excess over
$93,650
|
|
Over $151,650, but not over $297,350
|
$38,912, plus 35.5% of the excess over
$151,650
|
|
Over $297,350
|
$90,636 plus 39.1% of the excess over $297,350
|
Singles
|
Taxable income
|
Tax
|
|
Up to $27,050
|
15% of the taxable income
|
|
Over $27,050, but not over $65,550
|
$4,057.50, plus 27.5% of the excess over
$27,050
|
|
Over $65,550, but not over $136,750
|
$14,645, plus 30.5% of the excess over $65,550
|
|
Over $136,750, but not over $297,350
|
$36,361, plus 35.5% of the excess over
$136,750
|
|
Over $297,350
|
$93,374, plus 39.1% of the excess over
$297,350
|
Married but filing individually
|
Taxable Income
|
Tax
|
|
Up to $22,600
|
15% of the taxable income
|
|
Over $22,600, but not over $54,625
|
$3,288.75, plus 27.5% of the excess over
$22,600
|
|
Over $54,625, but not over $83,250
|
$12,196.88, plus 30.5% of the excess over
$54,625
|
|
Over $83,250, but not over $148,675
|
$20,927.50, plus 35.5% of the excess over
$83,250
|
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Over $148,675
|
$44,153.38, plus 39.1% of the excess over
$148,675
|
Where is the 10% bracket? The
amounts received as the early rebate included the 10% bracket change. The
10% bracket might be more of a change on the 2002 tax return.
Standard deduction
These apply regardless of whether you itemize your
deductions. The standard
deduction will be different for dependents and other taxpayers.
|
Status
|
Amount
|
|
Married, filing jointly
|
$7,600
|
|
Single
|
$4,550
|
|
Head of household
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$6,650
|
|
Married, filing separate returns
|
$3,800
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Additional standard deduction if over age 65 or blind
|
Status
|
Amount
|
|
Married Filers
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$900 each
|
|
Unmarried and not surviving spouse
|
$1,100 each
|
Personal exemptions
Exemptions allow you to exclude income from taxation based on
family size. $2,900 for each person in the family.
Personal exemption phase-outs
Depending on how you file, the tax code phases out the
benefits of the personal exemption as your income rises. The following
disclose the phase out income brackets.
|
Filing status
|
Phase-out begins
|
Phase-out ends
|
|
Joint return
|
$199,450
|
$321,950
|
|
Head of household
|
$166,200
|
$288,700
|
|
Single
|
$132,950
|
$255,450
|
|
Married, filing individually
|
$99,725
|
$160,975
|
Student loan deduction
You can deduct up to $2,500 of interest incurred in qualified
education expenses. The
deduction is limited by income as shown below:
|
Filing status
|
Phase-out begins
|
Phase-out ends
|
|
Joint return, or qualifying widow(ers)
|
$60,000
|
$75,000
|
|
Head of household
|
$40,000
|
$55,000
|
|
Single
|
$40,000
|
$55,000
|
|
Married, filing individually
|
$40,000
|
$55,000
|
401(k) contribution limit
You can contribute 1% to 15%, but not more than $10,500, this
year to the popular retirement account. The
contributions limit rises to $11,000 in 2002.
Estate tax changes
The estate doesn’t disappear until 2010. This year, the
estate tax applies to estates worth in excess of $675,000 with a top rate
of 55%. Next year, the ceiling rises to $1 million, and the top rate drops
to 50%.
Social Security tax
The rate is 6.2% of your first $80,400 in wages or salary.
Your employer must match the tax. (The wages ceiling rises to $84,900 in
2002.) For self-employed people, the Social Security rate is 12.4%.
Child tax credit
The child tax credit rises from $500 to $600 in 2001. It
rises to $700 in 2005.
Adoption credit
The adoption credit was permanently set at $10,000 for
adoptions with employer assistance. The beginning point of phase-outs for
the credit now starts at $150,000.
Medicare tax
The rate for you is 1.45% and applies to all of your wages or
salary. Your employer must match the tax. For the self-employed, the rate
is 2.9%.
Automobile mileage expense
If you use your car on the job, you can deduct mileage for
using the car on the job at a rate of 34.5 cents a mile
Long-term care insurance deduction
If you’re paying premiums on long-term care insurance
policies, you may be able to deduct some of your premiums as medical
expenses under the same rules are other medical expenses. These are the
allowable deductions.
|
Age
|
Eligible deduction
|
|
40 or less
|
$220
|
|
More than 40, less than 50
|
$410
|
|
More than 50, less than 60
|
$820
|
|
More than 60, less than 70
|
$2,200
|
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More than 70
|
$2,750
|
Earned-income credit
This is a credit against taxes that can help lower-income
families boost their incomes.
|
Number of children
|
Maximum amount of credit
|
Income limit
|
|
1
|
$2,428
|
$28,281
|
|
2 or more
|
$4,008
|
$32,121
|
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None
|
$364
|
$10,710
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