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2003 Individual Income Taxes
Federal - Form 1040
(Updated For 2003 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 2003 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.
To avoid confusion, I have simply replaced
the previous tax rate schedules with the new ones. If you are curious to
see a side by side comparison of how they looked before the changes, you can see
that here on CCH's
website.
2003 Personal Exemptions
$3,050 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:
$104,625 for Married Filing Separately
$139,500 for Single
$174,400 for Head of Household
$209,250 for Married Filing Jointly
2003 Standard Deductions
Single: $4,750 +
$1,150 if over 64 and/or blind
Married Filing
Jointly: $9,500 + $950 each if over 64 and/or blind
Married Filing
Separately: $4,750 + $950 if over 64 and/or blind
Head of Household: $7,000
+$1,150 if over 64 and/or blind
Itemized
Deductions are phased out for the evil rich, which
for this issue is defined as adjusted gross income (AGI) of over:
$ 69,750 for Married Filing Separately
$139,500 for Single
$139,500 for Head of
Household
$139,500 for Married Filing
Jointly
Ordinary Income Tax Rates
Married Filing Jointly
Single
Head of Household
Married Filing Separately
Married Filing Jointly
|
Taxable
Income |
Rate |
|
$0
- $14,000 |
10.0% |
|
$14,001
- $56,800 |
15.0% |
|
$56,801
- $114,650 |
25.0% |
|
$114,651
- $174,700 |
28.0% |
|
$174,701
- $311,950 |
33.0% |
|
$311,951
& Over |
35.0% |
Single
|
Taxable
Income |
Rate |
|
$0
- $7,000 |
10.0% |
|
$7,001
- $28,400 |
15.0% |
|
$28,401
- $68,800 |
25.0% |
|
$68,801
- $143,500 |
28.0% |
|
$143,501
- $311,950 |
33.0% |
|
$311,951
& Over |
35.0% |
Head of Household
|
Taxable
Income |
Rate |
|
$0
- $10,000 |
10.0% |
|
$10,001
- $38,050 |
15.0% |
|
$38,051
- $98,250 |
25.0% |
|
$98,251
- $159,100 |
28.0% |
|
$159,101
- $311,950 |
33.0% |
|
$311,951
& Over |
35.0% |
Married Filing
Separately
|
Taxable
Income |
Rate |
$0
- $7,000 |
10.0% |
|
$7,000
- $28,400 |
15.0% |
$28,401
- $57,325 |
25.0% |
$57,326
- $87,350 |
28.0% |
|
$87,351
- $155,975 |
33.0% |
|
$155,976
& Over |
35.0% |
Capital Gains Tax Rates
Gains from sales of assets owned less than or
equal to one year are taxed as ordinary income.
Depreciation recapture (Section 1250 gain) is
subject to a Federal income tax of 25%.
Gains from sales of assets that have been
owned for more than twelve months are taxed at special lower rates. They
are based on the rates which would apply if they were ordinary income.
These rates were changed by the new tax law, but only for sales taking place and
payments received after May 5, 2003.
Sales taking place between January 1, 2003 and May 5, 2003:
Income that would otherwise be in the 10% or
15% brackets: 10%
Income that would otherwise be in the 25% or
higher brackets: 20%
Sales taking place between May 6, 2003 and December 31, 2008:
Income that would otherwise be in the 10% or
15% brackets: 5%
Income that would otherwise be in the 25% or
higher brackets: 15%
Dividend Income
- Effective as of January 1, 2003:
Income that would otherwise be in the 10% or
15% brackets: 5%
Income that would otherwise be in the 25% or
higher brackets: 15%
Updated
Wednesday July 09, 2003 08:01:47 PM
Ozarks Time by KMK
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