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2004 Tax Facts at a Glance |
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ESTIMATED TAX PAYMENTS FOR THE 2004 CALENDAR YEAR
Prior-year safe harbor for estimated taxes of high-income taxpayer (over $150,000 if married, $75,000 if single)...........................................110% of your 2004 tax liability
1st Quarterly Tax Estimate due date................................................April 15, 2004
2nd Quarterly Tax Estimate due date...............................................June 15, 2004
3rd Quarterly Tax Estimate due date...............................................September 15, 2004
4th Quarterly Tax Estimate due date................................................January 17, 2005
CAPITAL GAINS TAX RATES
Maximum capital gains tax rate for taxpayers in the 10% or 15% bracket...................5%
Maximum capital gains tax rate for taxpayers above the 15% bracket......................15%
PERSONAL EXEMPTIONS
Current year personal exemption.....................................................................$3,100
STANDARD DEDUCTIONS
Under 65 - Married Filing Jointly....................................................................$9,700
Under 65 - Head of Household......................................................................$7,150
Under 65 - Single........................................................................................$4,850
Under 65 - Married Filing Separately.............................................................$4,850
65 & Over - Married Filing Jointly (both over 65)...........................................$11,600
65 & Over - Married Filing Jointly (one over 65)............................................$10,650
65 & Over - Head of Household....................................................................$8,100
65 & Over - Single......................................................................................$5,800
65 & Over - Married Filing Separately...........................................................$5,800
EQUIPMENT EXPENSE DEDUCTION
Business equipment expense (Sec. 179) deduction.........................................$102,000
Bonus depreciation percent...........................................................................50%
STANDARD MILEAGE RATES
Standard mileage rate for business driving..........................................37.5 cents per mile
Standard mileage rate for medical and moving expense deductions.......14 cents per mile
Standard mileage rate for charitable driving........................................14 cents per mile
EDUCATION COSTS
Maximum higher education student loan interest deduction.................................$2,500
Maximum "Hope Scholarship" Tax Credit..........................................................$1,500
Maximum "Lifetime Learning" Tax Credit..........................................................$2,000
Phase-out income for education tax credits if filing married............................$105,000
Phase-out income for education tax credits if filing single.................................$52,000
EMPLOYMENT TAXES
Social Security Wage Limit...........................................................................$87,900
Social Security (FICA) tax rate..........................................................................6.2%
Medicare tax rate...........................................................................................1.45%
Self-employment tax rate...............................................................................15.3%
Self-employed taxpayer's health insurance deduction.........................................100%
RETIREMENT CONTRIBUTIONS
Maximum IRA contribution .................................................$3,000 ($3,500 over age 50)
Maximum Roth IRA contribution..........................................$3,000 ($3,500 over age 50)
Maximum contribution to SIMPLE IRA plan...........$9,000 if under age 50, $10,500 if 50 or older
Maximum contribution to 401(k) plan........$13,000 if under age 50, $16,000 if 50 or older
Maximum defined contribution plan (formerly keough)..................................$41,000
AGI PHASE-OUT INCOME FOR IRA CONTRIBUTIONS WHEN ACTIVE PARTICIPANT IN ANOTHER RETIREMENT PLAN
Phase-out income when filing "married filing joint".................................$65,000 - $75,000
Phase-out income when filing "single" or "head of household".................$45,000 - $55,000
Phase-out income when filing "married filing separate"..................................$0 - $10,000
AGI PHASE-OUT INCOME FOR IRA CONTRIBUTIONS WHEN NOT AN ACTIVE PARTICIPANT BUT SPOUSE IS
Phase-out income for taxpayer filing "married filing joint"...................$150,000 - $160,000
Phase-out income for taxpayer filing "married filing separate"......................$0 - $10,000
AGI PHASE-OUT INCOME FOR ROTH IRA CONTRIBUTIONS
Phase out income for taxpayer filing "married filing joint"..................$150,000 - $160,000
Phase-out income for taxpayer filing "single"....................................$ 95,000 - $110.000
Phase-out income for taxpayer filing "married filing separate".....................$0 - $10,000
SOCIAL SECURITY BENEFITS
Benefits reduction if under age 65 plus 2 months..................$1 for every $2 over $11,640
Benefits reduction if under age 65.......................................$1 for every $3 over $31,080
Benefits reduction if age 65 plus 8 months and over......................................no reduction
Phase-out income of tax-free social security benefits if married............................$32,000
Phase-out income of tax-free social security benefits if single...............................$25,000
ESTATE TAX EXEMPTION
Estate tax exemption................................................................................$1,500,000
Annual gifting exemption...............................................................................$11,000
OTHER MISCELLANEOUS TAX FACTS
Child's unearned income maximum before "kiddie tax" applies....$1,600
Child's standard deduction with no earned income.........................$800
Child's standard deduction with earned income.............................$250 plus earned income |
