|
|
|
| If
Taxpayer's Income Is... |
Then
Estimated Taxes Are... |
| Between
|
But
Not Over |
Base
Tax |
+
Rate |
Of
the Amount Over |
| $0 |
$7,300 |
$0 |
10% |
$0 |
| $7,300 |
$29,700 |
$730.00 |
15% |
$7,300 |
| $29,700 |
$71,950 |
$4,090.00 |
25% |
$29,700 |
| $71,950 |
$150,150 |
$14,652.50 |
28% |
$71,950 |
| $150,150 |
$326,450 |
$36,548.50 |
33% |
$150,150 |
| $326,450 |
-
- - - - |
$94,727.50 |
35% |
$326,450 |
|
Example
#1
Kevin
Lewis , a single taxpayer, has 2005 TAXABLE INCOME of $110,000.
Lewis' income falls between:
|
| Between
|
But
Not Over |
Base
Tax |
+
Rate |
Of
the Amount Over |
| $71,950 |
$150,150 |
$14,652.50 |
28% |
$71,950 |
|
Kevin
Lewis' Estimated Taxes
| |
=
Base Tax + (Rate x Amount Over) |
| |
=
$14,652.50 + [.28 x ($110,000 - $71,950)] |
| |
=
$14,652.50 + (.28 x $38,050) |
| |
=
$14,652.50 + $10,654.00 |
| |
=
$25,306.50 |
Kevin's
total tax dropped almost $120.00 from his 2004 tax return, using
the 2004 income tax rate table
for single taxpayers.
Example
#2
Jill
Mafferty, a single taxpayer, has 2005 TAXABLE INCOME of $52,000.
Mafferty's income falls between:
|
| Between
|
But
Not Over |
Base
Tax |
+
Rate |
Of
the Amount Over |
| $29,700 |
$71,950 |
$4,090.00 |
25% |
$29,700 |
Jill
Mafferty 's Estimated Taxes
| |
=
Base Tax + (Rate x Amount Over) |
| |
=
$4,090.00 + [.25 x ($52,000 - $29,700)] |
| |
=
$4,090.00 + (.25 x $22,300) |
| |
=
$4,090.00 + $5,575.00 |
| |
=
$9,665.00 |
Jill
also came out better in 2005 than the previous year. Her total
tax dropped roughly $60.00 from her 2004 tax return, using the
2004 income tax rate table
for single taxpayers.
|
This equation
does not reflect standard deductions, mortgage deductions, or any other
credits that may decrease your estimated taxable income. Use only for
2005 income taxes. The names mentioned in these samples are fictitious
and not based on any individual. Actual tax tables may apply if your income
is less than $100,000. For illustrative and planning purposes only.
|
