Some Key Tax Information -- 2003-2011
Below is from b2 unless OTW stated. p. 6 is Overview thru
|
2003 |
.2004. |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
Capital Gains Rates Tax Brackets Below 15% Tax Brackets Above 15% |
5% 15% |
5% 15% |
5% 15% |
5% 15% |
5% 15% |
0% 15% |
10% 20% |
10% 20% |
10% 20% |
Qualified Dividends Rate Tax Bracket 15% or below Tax Bracket Above 15% |
5% 15% |
5% 15% |
5% 15% |
5% 15% |
5% 15% |
0% 15% |
na na |
na na |
na na |
Cap Gains and Dividends: A Succinct Rendering of Above
(asssuming 2003-2008 is extended forever) Ordinary Bracket: <= 15% Bracket > 15% Bracket ============== ============= Cap Gains: 5% 15% 5-year Cap Gains: 5% ??? Dividends: 5% 15% Source: AAII Financial Guide 2003 p. 6, p. 17 Also 2004 Guide Bob 3/22/04 Session: Long term capital gains: about 5% fed and 5.3% state. See TABLE
ST;K for another view of this |
|||||||||
|
2003 |
.2004. |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
Marginal Income Tax Rates (b2 p. 4 doesn't list the cutoffs though! except for the 10% bkt.) See below table for 2004. |
35% ----------------------------------------------------> 33% ----------------------------------------------------> 28% ----------------------------------------------------> 25% ----------------------------------------------------> 15% ----------------------------------------------------> 10% ----------------------------------------------------> The 10% bracket is $7000 single / $14000 mfj thru 2008. In 2009 and 2010 the 2008 numbers are inflation-adjusted. In 2011 the 10% bracket disappears. Source: b2 p. 4 |
39.6% 36% 31% 28% 15% na |
|||||||
|
2003 |
.2004. |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
Standard Deduction (Under 65) Single MFJ Source: b2 p 19 |
$4,750 $9,500 |
$4,850 $9,700 |
|
|
|
|
|
|
|
Personal Exemption (b2 p. 19) |
$3,050 |
$3,100 |
|
|
|
|
|
|
|
Child Credit (b2 p. 4) |
$1000 |
$1000 |
$1000 |
$1000 |
$1000 |
$1000 |
$1000 |
$1000 |
$500 |
|
|
|
|
|
|
|
|
|
|
Marriage Penalty Relief # S.D. (% S.D. for singles) # 15% Tax Bkt (% of bracket for singles). Source: b2 p. 4 |
200% 200% |
200% 200% |
200% 200% |
200% 200% |
200% 200% |
200% 200% |
200% 200% |
200% 200% |
na na |
|
2003 |
.2004. |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
Repeal (%) of Personal Exemption PhaseOuts |
na |
na |
na |
33.3% |
33.3% |
66.6% |
66.6% |
100% |
na |
Repeal(%) of Limititation on Itemized Deductions. |
na |
na |
na |
33.3% |
33.3% |
66.6% |
66.6% |
100% |
na |
|
|
|
|
|
|
|
|
|
|
AMT Exemption Single MFJ |
40250 58000 |
40250 58000 |
33750 45000 |
33750 45000 |
33750 45000 |
33750 45000 |
33750 45000 |
33750 45000 |
33750 45000 |
Deductible IRA Contribution Over age 50 |
3000 3500 |
3000 3500 |
4000 4500 |
4000 5000 |
4000 5000 |
5000 6000 |
Infla 1K m |
Infla 1K m |
Infla 1K m |
Max 401 K Contribution Over age 50 |
12000 14000 |
13000 16000 |
14000 18000 |
15000 20000 |
Infla 5K m |
Infla 5K m |
Infla 5K m |
Infla 5K m |
Infla 5K m |
|
2003 |
.2004. |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estate Tax Exemption ($ millions) and top estate tax
rate (and GST Tax rate) |
1.0 49% |
1.5 48% |
1.5 47% |
2.0 46% |
2.0 45% |
2.0 45% |
3.5 45% |
RE-PEALED |
1.0 55% |
Later - I updated above table from the 2004 AAII Guide, b2, so any notes about getting info from 04.JAI is provably obsolete.
The Deductible IRA for 2004 and beyond come from Smith Barney newsletter July 2001. and AAII Journal June 2002. The latter says 2009 and after are the 2008 numbers indexed for inflation in $500 increments. (The $1,000 catch-up contribution apparently isn't -- the "1K m" means "$1,000 more").
The 401K limits comes from a Smith Barney newsletter July 2001 and an AAII Journal August 2001. The "5K M" means $5000 more, apparently not indexed for inflation.
Estate Tax Exemption: From p. 43 of "Ed Slott's Parlay your IRA Into A Family Fortune", 2005 book. For prior years: 2001 it was $675,000 and 55%, In 2002 It was $1 million and 50%.
Year |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
Marginal Income Tax Rates, (taxable income and bracket percent) |
SINGLE $0-7150 10% 7150-29050 15% 29050-70350 25% 70350-146750 28% 146750-319100 33% > 319100 35% MFJ $0-14300 10% 14300-58100 15% 58100-117250 25% 117250-178650 28% 178650-319100 33% > 319100 35% |
Darn - the 2004 AAII Guide does not have this info
anywhere! |
|
|
|
|
Above from the below URL gotten 10/9/04. I had to type it -- View Source and copying is disabled.
http://www.completetax.com/index.asp?page=http://www.completetax.com/taxguide/news/03-108rates.asp
The info is not consistent with the AIII Finance Guide 2003 p. 6 which shows top of 10% bracket a constant $7000 single / 14000 MFJ. The 2004 AAII Guide shows it a constant $7000 single / $14000 MFJ through 2008. In 2009 and 2010 they have an inflation adjustment. In 2011 the 10% bracket disappears.
[] Social Security: A single
pays 50% taxes on SS benefits if has a "modified" adjusted gross
income between 25 K$ and 34 K$, and 85% for amounts above $34,000 . Modified adjusted gross income is your
taxable income PLUS any tax-exempt interest (e.g. municipal bonds) PLUS half of
your SS benefits.
Source: b2 (AAII Personal Tax & Financial Planning Guide, 2004), p.
7
Its not clear if
its a STEP jump or like tax brackets where if e.g. has a MAGI of 30 K$, then
pays 50% on 5 K$ instead of on 30 K$.
Note that taxable income apparently includes IRA and 401 K distributions
-- it doesn't say so explicitly but warrns to delay taking retirement plan
distributions as much as are able.
Percent of SS Benefits Taxed |
Percent of Modified Adjusted
Gross Income |
|
|
SINGLE AND
HEAD OF HOUSEHOLDS |
|
0% |
Below $25,000 Single & Head of Household |
50% |
$25,000 to $34,000 Single & Head of Household |
85% |
Above $34,000 Single & Head of Household |
MARRIED FILING
JOINTLY |
|
0% |
Below $32,000 Married Filing Jointly |
50% |
$32,000 To $44,000 Married Filing Jointly |
85% |
Above $44,000 Married Filing Jointly |
|
|
|
|
Table STK - Another view of Capital Gains and
Dividends - matches 2004 AAII Guide
|
2005-2007 ioep |
2008 |
2009-2010 |
2011 and beyond |
Ordinary Tax Rate |
15% |
15% |
15% |
15% |
...Cap Gains |
5% |
0% |
10% |
10% |
...Dividends |
5% |
0% |
15% <.1> |
15% <.1> |
|
|
|
|
|
Ordinay Tax Rate |
25% |
25% |
25% |
28% |
...Cap Gains |
15% |
15% |
20% |
20% |
...Dividends |
15% |
15% |
25% <.1> |
28% <.1> |
|
|
|
|
|
# Above does not include the 5-year capital gain rate, which I don't understand.
<1> Qualified dividends: For 2009 and beyond, the AAII has "na" for the qualified dividends rate. I assume that means that dividends are taxed at the ordinary tax rate.
Bob 3/22/04 Session: Long term capital gains: about 5% fed and 5.3% state.
Minnesota 2005: FFI: 05.AAL Minnesota Taxes Ordinary Rates:
Single: 5.35%
up to taxable income of $19,890 and 7.05% up to $65,330, and 7.85% thereafter
MFJ: 5.35% up to taxable income of $29,070 and
7.05% up to
$115,510, and 7.85%
thereafter Capital gains: probably same as ordinary rates above based on 3/2004,
at least for low income people like me per Bob 3/2004 ( 05.AAN ). I'm
wondering though ... Standard Deduction? Exemptions? |
Combined
Combined tax rates 1st bracket (low
income). Assuming tax rates add
(because am below the standard deduction).
Also, assume Minnesota cap gains are same as ordinary UFN: 1st Bracket: Ordinary: 15% + 5.4% = 20.4% CapGain thru end 2007: 5% + 5.4% = 10.4% 2009 and beyond: 10% + 5.4% = 15.4% Dividend thru end 2007: 5% + 5.4% = 10.4% 2009 and beyond: 15% + 5.4% = 20.4% 2nd Bracket: Ordinary: 25 - 28% + 7.0% = 32.0 - 35.0% (the higher number is 2011 and beyond) CapGain thru end 2007: 15% + 7.0% = 22.0% 2009 and beyond: 20% + 7.0% = 27.0% Dividend, thru end 2007: 15% + 7.0% = 22.0% 2009 and beyond: 25 - 28% + 7.0% = 27.0% - 30.0% (the higher number is 2011 and beyond) |