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2007 Individual Income Taxes
Federal - Form 1040
In determining your tax burden, it's necessary to
know what tax bracket you are in. Following are the federal tax rate
schedules for 2007 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.
2007 Personal Exemptions
$3,400 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:
$117,300 for Married Filing Separately
$156,400 for Single
$195,500 for Head of Household
$234,600 for Married Filing Jointly
2007 Standard Deductions
Single: $5,350
+ $1,250 if over 64 and/or blind
Married Filing Jointly:
$10,700 + $1,000 each if over 64 and/or blind
Married Filing Separately:
$5,350 + $1,000 if over 64 and/or blind
Head of Household: $7,850 +$1,250
if over 64 and/or blind
Dependents: Higher of $850 or earned
income plus $300
Itemized
Deductions are phased out for the evil rich, which for this issue is defined as
adjusted gross income (AGI) of over:
$ 78,200 for Married Filing Separately
$156,400 for Single
$156,400 for Head of Household
$156,400 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 -
$15,650 |
10.0% |
|
$15,651 - $63,700 |
15.0% |
|
$63,701 - $128,500 |
25.0% |
|
$128,501 - $195,850 |
28.0% |
|
$195,851 - $349,700 |
33.0% |
|
$349,701 & Over |
35.0% |
Single
|
Taxable Income |
Rate |
|
$0 -
$7,825 |
10.0% |
|
$7,826 - $31,850 |
15.0% |
|
$31,851 - $77,100 |
25.0% |
|
$77,101 - $160,850 |
28.0% |
|
$160,851 - $349,700 |
33.0% |
|
$349,701 & Over |
35.0% |
Head of Household
|
Taxable Income |
Rate |
|
$0 -
$11,200 |
10.0% |
|
$11,201 - $42,650 |
15.0% |
|
$42,651 - $110,100 |
25.0% |
|
$110,101 - $178,350 |
28.0% |
|
$178,351 - $349,700 |
33.0% |
|
$349,701 & Over |
35.0% |
Married Filing
Separately
|
Taxable Income |
Rate |
|
$0 -
$7,825 |
10.0% |
|
$7,826 - $31,850 |
15.0% |
|
$31,851 - $64,250 |
25.0% |
|
$64,251 - $99,925 |
28.0% |
|
$99,926 - $174,850 |
33.0% |
|
$174,851 & 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.
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
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
Friday November 10, 2006 01:01:56 PM
Ozarks Time by KMK
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