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Tax Rate Guide for 2007/2008
Standard Mileage Rates
Corporate Tax Rate Schedule
Individual Tax Rate Schedules
Standard Deductions/Personal Exemptions
Capital Gains and Dividends Taxed as Net Capital Gain
ERISA and Tax Code Pension and Retirement Plan Limits
|
|
2007 |
2008 |
|
Business |
48.5 cents per mile |
50.5 cents per mile |
|
Charitable |
14.0 cents per mile |
19.0 cents per mile |
|
Medical and Moving |
20.0 cents per mile |
14.0 cents per mile |
|
If Taxable Income Is |
The Tax Is: |
|
Not over $50,000 |
15% of the taxable income |
|
Over $50,000 |
but not over $75,000 |
$7,500 plus |
25% of the amount over $50,000 |
|
Over $75,000 |
but not over $100,000 |
$13,750 plus |
34% of the amount over $75,000 |
|
Over $100,000 |
but not over $335,000 |
$22,250 plus |
39% of the amount over $100,000 |
|
Over $335,000 |
but not over $10,000,000 |
$113,900 plus |
34% of the amount over $335,000 |
|
Over $10,000,000 |
but not over $15,000,000 |
$3,400,000 plus |
35% of the amount over $10,000,000 |
|
Over $15,000,000 |
but not over $18,333,333 |
$5,150,000 plus |
38% of the amount over $15,000,000 |
|
Over 18,333,333 |
|
35% of the taxable income |
|
|
Qualified personal service corporations are taxed at a flat rate of 35% of taxable
income |
2007: Married Individuals Filing Joint Returns and Surviving Spouses
Code Section 1(a)
|
If Taxable Income Is: |
The Tax Is: |
|
Not over $15,650 |
10% of the taxable income |
|
Over $15,650 |
but not over $63,700 |
$1,565.00 plus |
15% of the excess over $15,650 |
|
Over $63,700 |
but not over $128,500 |
$8,772.50 plus |
25% of the excess over $63,700 |
|
Over $128,500 |
but not over $195,850 |
$24,972.50 plus |
28% of the excess over $128,500 |
|
Over $195,850 |
but not over $349,700 |
$43,830.50 plus |
35% of the excess over $195,850 |
|
Over $349,700 |
|
$94,601.00 plus |
35% of the excess over $349,700 |
2008: Married Individuals Filing Joint Returns and Surviving Spouses
Code Section 1(a)
|
If Taxable Income Is: |
The Tax Is: |
|
Not over $16,051 |
10% of the taxable income |
|
Over $16,051 |
but not over $65,100 |
$1,605.00 plus |
15% of the excess over $16,050 |
|
Over $65,101 |
but not over $131,450 |
$8,962.50 plus |
25% of the excess over $65,100 |
|
Over $131,451 |
but not over $200,300 |
$25,550.00 plus |
28% of the excess over $131,450 |
|
Over $200,301 |
but not over $357,700 |
$44,828.00 plus |
35% of the excess over $200,300 |
|
Over $357,701 |
|
$96,770.00 plus |
35% of the excess over $357,700 |
2007: Heads of Households
Code Section 1(b)
|
If Taxable Income Is: |
The Tax Is: |
|
Not over $11,200 |
10% of the taxable income |
|
Over $11,200 |
but not over $42,650 |
$1,120.00 plus |
15% of the excess over $11,200 |
|
Over $42,650 |
but not over $110,100 |
$5,837.50 plus |
25% of the excess over $42,650 |
|
Over $110,100 |
but not over $178,350 |
$22,700.00 plus |
28% of the excess over $110,100 |
|
Over $178,350 |
but not over $349,700 |
$41,810.00 plus |
33% of the excess over $178,350 |
|
Over $349,700 |
|
$98,355.50 plus |
35% of the excess over $349,700 |
2008 Heads of Households
Code Section 1(b)
|
If Taxable Income Is: |
The Tax Is: |
|
Not over $11,450 |
10% of the taxable income |
|
Over $11,451 |
but not over $43,650 |
$1,145.00 plus |
15% of the excess over $11,450 |
|
Over $43,651 |
but not over $112,650 |
$5,975.00 plus |
25% of the excess over $43,650 |
|
Over $112,651 |
but not over $182,400 |
$23,225.00 plus |
28% of the excess over $112,650 |
|
Over $182,401 |
but not over $357,700 |
$42,755.00 plus |
33% of the excess over $182,400 |
|
Over $357,701 |
|
$100,605.00 plus |
35% of the excess over $357,700 |
2007 Unmarried Individuals (Other than Surviving Spouses and Heads of Households)
|
If Taxable Income Is: |
The Tax Is: |
|
Not over $7,825 |
10% of the taxable income |
|
Over $7,825 |
but not over $31,850 |
$782.50 plus |
15% of the excess over $7,825 |
|
Over $31,850 |
but not over $77,100 |
$4,386.25 plus |
25% of the excess over $31,850 |
|
Over $77,100 |
but not over $160,850 |
$15,698.75 plus |
28% of the excess over $77,100 |
|
Over $160,850 |
but not over $349,700 |
$39,148.75 plus |
33% of the excess over $160,850 |
|
Over $349,700 |
|
$101,469.25 plus |
35% of the excess over $349,700 |
2008 Unmarried Individuals (Other than Surviving Spouses and Heads of Households)
|
If Taxable Income Is: |
The Tax Is: |
|
Not over $8,025 |
10% of the taxable income |
|
Over $8,026 |
but not over $32,550 |
$802.50 plus |
15% of the excess over $8,025 |
|
Over $32,551 |
but not over $78,850 |
$4,481.25 plus |
25% of the excess over $32,550 |
|
Over $78,851 |
but not over $164,550 |
$16,056.25 plus |
28% of the excess over $78,850 |
|
Over $164,551 |
but not over $357,700 |
$40,052.25 plus |
33% of the excess over $164,550 |
|
Over $357,701 |
|
$103,791.75 plus |
35% of the excess over $357,700 |
2007 Married Individuals Filing Separate Returns
|
If Taxable Income Is: |
The Tax Is: |
|
Not over $7,825 |
10% of the taxable income |
|
Over $7,825 |
but not over $31,850 |
$782.50 plus |
15% of the excess over $7,825 |
|
Over $31,850 |
but not over $64,250 |
$4,386.25 plus |
25% of the excess over $31,850 |
|
Over $64,250 |
but not over $97,925 |
$12,486.25 plus |
28% of the excess over $64,250 |
|
Over $97,925 |
but not over $174,850 |
$21,915.25 plus |
33% of the excess over $97,925 |
|
Over $174,850 |
|
$47,300.50 plus |
35% of the excess over $174,850 |
2008 Married Individuals Filing Separate Returns
|
If Taxable Income Is: |
The Tax Is: |
|
Not over $8,025 |
10% of the taxable income |
|
Over $8,025 |
but not over $32,550 |
$802.50 plus |
15% of the excess over $8,025 |
|
Over $32,551 |
but not over $65,725 |
$4,481.25 plus |
25% of the excess over $32,550 |
|
Over $65,726 |
but not over $100,150 |
$12,775.00 plus |
28% of the excess over $65,725 |
|
Over $100,151 |
but not over $178,850 |
$22,414.00 plus |
33% of the excess over $100,150 |
|
Over $178,851 |
|
$48,385.00 plus |
35% of the excess over $178,850 |
Standard Deduction Tables
|
|
2007 |
2008 |
|
Married Filing Jointly and Surviving Spouses |
$10,700 |
$10,900 |
|
Heads of Households |
$7,850 |
$8,000 |
|
Single |
$5,350 |
$5,450 |
|
Married Filing Separate |
$5,350 |
$5,450 |
|
Additional amount for Aged and Blind |
$1,050 for each |
$1,050 for each |
Additional amount for Aged and Blind
if unmarried and not a surviving spouse |
$1,300 for each |
$1,350 for each |
Personal Exemptions and Phaseout Amounts
|
|
2006 |
2008 |
|
Personal Exemption Amount |
$3,400 |
$3,500 |
|
Code section 151(d)(3) phaseout of the tax benefit of the personal exemptions is
calculated by reducing the total amount of the personal exemptions by 2 percent
for each $2,500 increment (or portion thereof) of adjusted gross income in excess
of a threshold phaseout amount adjusted for inflation. These amounts are as follows: |
|
|
Tax years beginning in
2007 |
Tax years beginning in
2008 |
|
Type of Taxpayer |
Phaseout
Begins: |
Maximum Phaseout: |
Phaseout
Begins: |
Maximum Phaseout: |
Married and Individuals Filing Joint Returns
And Surviving Spouses
Code Section 1(a) |
$234,600 |
$357,100 |
$239,950 |
$362,450 |
Heads of Households
Code Section 1(b) |
$195,500 |
$318,000 |
$199,950 |
$322,450 |
Unmarried Individuals
(Other Than Surviving Spouses and Heads of Households)
Code Section 1(c) |
$156,400 |
$278,900 |
$159,950 |
$282,450 |
Married Individuals Filing Separate Returns
Code Section 1(d) |
$117,300 |
$178,550 |
$119,975 |
$181,225 |
Capital Gains
|
|
2005-10 |
|
2011 |
Rate for Non-corporate Taxpayers
above 15% income tax bracket |
15% |
|
20% |
|
|
2005-07 |
2008-10 |
2011 |
Rate for Non-corporate Taxpayers
in 10% or 15% tax bracket |
5% |
0% |
10% |
Dividends Taxed as Net Capital Gain
|
|
2005-10 |
|
2009 |
Rate for Non-corporate Taxpayers
above 15% income tax bracket |
15% |
|
* |
|
|
2005-07 |
2008-10 |
2011 |
Rate for Non-corporate Taxpayers
in 10% of 15% tax bracket |
5% |
0% |
* |
* After 2010, dividends will be taxed as ordinary income.
2007 Estates and Trusts Tax Rate Schedules
Code Section 1(e)
|
If Taxable Income Is: |
The Tax Is: |
|
Not over $2,150 |
15% of the taxable income |
|
Over $2,150 |
but not over $5,000 |
$322.50 plus |
25% of the excess over $2,150 |
|
Over $5,000 |
but not over $7,650 |
$1,035.00 plus |
28% of the excess over $5,000 |
|
Over $7,650 |
but not over $10,450 |
$1,777.00 plus |
33% of the excess over $7,650 |
|
Over $10,450 |
|
$2,701.00 plus |
35% of the excess over $10,050 |
Code Section 1(e)
|
If Taxable Income Is: |
The Tax Is: |
|
Not over $2,200 |
15% of the taxable income |
|
Over $2,200 |
but not over $5,150 |
$330.00 plus |
25% of the excess over $2,200 |
|
Over $5,150 |
but not over $7,850 |
$1,067.50 plus |
28% of the excess over $5,150 |
|
Over $7,850 |
but not over $10,700 |
$1,823.50 plus |
33% of the excess over $7,850 |
|
Over $10,700 |
|
$2,764.00 plus |
35% of the excess over $10,700 |
Note: In 2006, the top rate is reduced to 46% and in 2007-2009 to 45%
In 2010, the estate tax is repealed and the top gift tax rate is reduced to 35%.
Note that gifts and estates are not taxed in the lower brackets because of the use
of the "applicable exclusion amount."
Applicable Exclusion Amount for Estate Tax
|
Year of Transfer |
Applicable Exclusion Amount |
|
2006/2007/2008 |
$2,000,000 |
|
2009 |
$3,500,000 |
Applicable Exclusion Amount for Gift Tax
|
Year of Transfer |
Applicable Exclusion Amount |
|
2002-2009 |
$1,000,000 |
Gift Tax Annual Exclusion
|
Year of Transfer |
Applicable Exclusion Amount |
|
2002-2005 |
$11,000 |
|
2006 |
$12,000 |
From 1982 - 2001, the annual gift tax exclusion was $10,000.
|
|
2007 |
2008 |
|
Deferral Limits for Plans |
|
|
|
401(k) |
15,500 |
15,500 |
|
SIMPLE |
10,500 |
10,500 |
|
403(b) |
15,500 |
15,500 |
|
457 |
15,500 |
15,500 |
|
Catch-Up Contributions for Participants Age 50 or Older |
|
|
|
401(k) Plans |
5,000 |
5,000 |
|
SIMPLE |
2,500 |
2,500 |
|
Qualified Plans - Annual Compensation Limit |
225,000 |
230,000 |
|
Defined Benefit Maximum Annual Benefit |
180,000 |
185,000 |
|
Defined Contribution - Maximum Annual Addition |
45,000 |
46,000 |
|
"Key Employee" in Top-Heavy Plan |
145,000 |
150,000 |
To Determine Maximum Account Balance in ESOP
Subject to 5-Year Distribution Period |
915,000 |
935,000 |
|
"Highly Compensated Employee" Threshold |
100,000 |
105,000 |
|
SEP Compensation Threshold for Participation |
500 |
500 |
|
Definition of "Control Employee" for Fringe Benefit Valuation |
|
|
|
Regs. 1.61-21(f)(5)(i) |
90,000 |
90,000 |
|
Regs. 1.61-21(f)(5)(iii) |
180,000 |
185,000 |
|

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