2004 Federal Tax Schedules

All numbers are adjusted for inflation.

 

Married individuals filing joint returns and surviving spouses

If taxable income is: Tax is:
$1 - $14,300 10% of taxable income
$14,301 - $58,100 15% of taxable income
$58,101 - $117,250 25% of taxable income
$117,251 - $178,650 28% of taxable income
$178,651 - $319,100 33% of taxable income
Over $319,100 35% of taxable income

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Heads of Households

If taxable income is: Tax is:
$1 - $10,200 10% of taxable income
$10,201 - $38,900 15% of taxable income
$38,901 - $100,500 25% of taxable income
$100,501 - $162,700 28% of taxable income
$162,701 - $319,100 33% of taxable income
Over $319,100 35% of taxable income

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Single individuals (other than surviving spouses and heads of households)

If taxable income is: Tax is:
$1 - $7,150 10% of taxable income
$7,151 - $29,050 15% of taxable income
$29,051 - $70,350 25% of taxable income
$70,351 - $146,750 28% of taxable income
$146,751 - $319,100 33% of taxable income
Over $319,100 35% of taxable income

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Married individuals filing separate returns

If taxable income is: Tax is:
$1 - $7,150 10% of taxable income
$7,151 - $29,050 15% of taxable income
$29,051 - $58,625 25% of taxable income
$58,626 - $89,325 28% of taxable income
$89,326 - $159,550 33% of taxable income
Over $159,550 35% of taxable income

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Standard Deduction

Single $4,850
Married filing Jointly/Surviving spouses $9,700
Married filing separately $4,850
Head of household $7,150
Additional for elderly or blind (married) $950
Additional for elderly or blind (single) $1,200
Taxpayer dependent of another greater of $800 or $250 plus earned income, not to exceed regular standard deduction

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Maximum/minimum rate for net long-term capital gains

Over 12 months 15%/5%
Over 5 years Eliminated

 

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Personal exemption

$3,100 (zero for individual who is dependent of another taxpayer)

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FICA & self-employment tax

Taxable wages for social security up to $87,900
Maximum social security $5,450
Social security tax rate for both employers and employees 6.20%
Social security tax rate for self-employed 12.4%
Taxable wages for Medicare All
Maximum Medicare tax No limit
Medicare tax rate for both employers and employees 1.45%
Medicare tax rate for self-employed 2.9%
Self-employed health insurance deduction 100%

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Social security earnings limit

Under age 65 and four months $11,640
Age 65 and over No limit

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Retirement plan limitations

IRA Contribution Limit $3,000
     50 & over catch-up $500
SIMPLE Deferral Limit $9,000
     50 & over catch-up $1,500
401(k) Deferral Limit $13,000
     50 & over catch-up $3,000

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Retirement plan Cost of Living Adjustments (COLAs)

Category For 2004
Compensation Cap for Plan Purposes $200,000
Compensation for Highly Compensated Definition $90,000
Compensation for HCE Definition and Top Paid 20% $90,000
Key Employee Compensation - Officer $130,000
Key Employee Compensation - 1% Owner $150,000
Deferral Limit for 401(k) & SAR-SEPs $13,000
Deferral Limit for 403(b) Plans $13,000
Deferral Limit for 457(b) Plans $13,000
Deferral Limit for SIMPLE IRA Plans $9,000
Maximum Match for SIMPLE IRA Plans $9,000
Minimum Earnings for SEP Contribution Plans $450
Social Security Wage Base OASDI $87,900
Medicare Wage Base Unlimited

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Section 179 Deduction

$102,000 for property placed in service in calendar years 2004.

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Kiddie tax unearned income maximum

$1,600

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Adoption Tax Credit

Expenses up to $10,390 (subject to AGI phase-out beginning at $155,860 
to completely phased out at $195,860)

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Education Loan Interest Deduction

$2,500

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Higher Education Deduction

$4,000/$2,000

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Estate Tax Exemption

$1,500,000

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Top Estate Tax Rate

48%

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Annual Gift Exclusion

$11,000

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Standard mileage allowance

Business 44.5 cents/mile
Charitable activities 14 cents/mile
Medical expense 14 cents/mile
Moving expense 14 cents/mile

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Phase-out income levels (based on adjusted or modified adjusted gross income)

Personal exemption
Single $142,700/$265,200
Joint returns & surviving spouses $214,050/$336,550
Married filing separately $107,025/$168,275
Head of household $178,350/$300,850
Itemized deductions
Single/Joint/Head of Household $142,700
Married filing separately $71,350
College Savings bond interest exclusion
Single/Head of Household $59,850/$74,850
Joint $89,750/$119,750
Married filing separately $0
IRA deductibility (with company pension)
Single/Head of Household $45,000 - 55,000
Joint, when taxpayer has company pension $65,000 - 75,000
Joint, when spouse has company pension $150,000 -160,000
Married filing separately $0-$10,000
Roth IRA eligibility
Single/Head of household $95,000 - 110,000
Joint $150,000 - 160,000
Married filing separately $0 - 10,000
Rollover of regular IRA to Roth IRA $100,000 (not allowed for married filing separately)
Education IRA
Single/Head of household
$95,000 - 110,000
Married filing separately $95,000 - 110,000
Joint $190,000 - 220,000
HOPE/Lifetime learning credits
Single/Head of household $42,000 - 52,000
Joint $85,000 - 105,000
Married filing separately $0
Education loan interest deduction
Single/Head of Household $50,000 - $65,000
Joint $100,000 - 130,000
Married filing separately $0
Child credit
• $1,000 per child for 2003 and 2004
• $600 per child thereafter
Single/Head of household starts at $75,000
Joint starts at $110,000
Married filing separately starts at $55,000
Higher Education Deduction
Single $65,000/$80,000
Joint $130,000/$160,000
Married filing separately $0

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