2001 Individual Income Taxes 
- Form 1040 - Updated For New Tax Law

In determining your tax burden, it's necessary to know what tax bracket you are in.  Following are the federal tax rate schedules for 2001 for each of the filing statuses.  The amounts are Taxable Income, which is after subtracting deductions and exemptions.  Each bracket is taxed at its separate rate and the total tax is the sum of the taxes on each bracket.  When analyzing the tax hit for additional income, you would use your top marginal rate.  Unlike the other kinds of taxes, these are all adjusted each year to keep pace with inflation and prevent what's called "bracket creep," where taxpayers are pushed into a higher bracket just by receiving cost of living raises.

In their infinite wisdom, our rulers in Washington recently added a secret 10% bracket for the first $6,000 of income that will show up in the 2002 tax rate schedules.  For 2001, they are either sending taxpayers a check for $300 representing 5% of their first $6,000 or allowing this amount as a credit on their tax returns.

2001 Personal Exemptions

$2,900 per person and dependent

These are phased out for the evil rich, which for this issue is defined as adjusted gross income (AGI) of over $99,725.

2001 Standard Deductions

    Single: $4,550 + $1,100 if over 64 and/or blind

    Married Filing Jointly: $7,600 + $850 each if over 64 and/or blind

    Married Filing Separately: $3,800 + $850 if over 64 and/or blind

    Head of Household: $6,650 +$850 if over 64 and/or blind

Income Tax Rates

Married Filing Jointly

Single

Head of Household

Married Filing Separately

Married Filing Jointly

Single

Head of Household

Married Filing Separately

Updated 07/30/2001 07:07:20 PM
Ozarks Time by KMK

Kerry M. Kerstetter
MBA~CPA~ATP~ATA
11802 Deer Road
Harrison, AR  72601
E-Mail: KMKCPA@TaxGuru.org
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