|
|
|
| If
Taxpayer's Income Is... |
Then
Estimated Taxes Are... |
| Between
|
But
Not Over |
Base
Tax |
+
Rate |
Of
the Amount Over |
| $0 |
$7,150 |
$0 |
10% |
$0 |
| $7,150 |
$29,050 |
$715.00 |
15% |
$7,150 |
| $29,050 |
$58,625 |
$4,000.00 |
25% |
$29,050 |
| $58,625 |
$89,325 |
$11,393.75 |
28% |
$58,625 |
| $89,325 |
$159,550 |
$19,989.75 |
33% |
$89,325 |
| $159,550 |
-
- - - - |
$43,164.00 |
35% |
$159,550 |
|
Example
#1
Joe
McMurdoch, a married taxpayer filing his own return, has TAXABLE
INCOME of $85,000. McMurdoch's income falls between:
|
| Between
|
But
Not Over |
Base
Tax |
+
Rate |
Of
the Amount Over |
| $58,625 |
$89,325 |
$11,393.75 |
28% |
$58,625 |
|
Joe
McMurdoch's Estimated Taxes
| |
=
Base Tax + (Rate x Amount Over) |
| |
=
$11,393.75 + [.28 x ($85,000 - $58,625)] |
| |
=
$11,393.75 + (.28 x $26,375) |
| |
=
$11,393.75 + $7,385.00 |
| |
=
$18,778.75 |
Example
#2
Mildred
Filner, a married woman who is filing her return independently of
her husband, has TAXABLE INCOME of $58,000. Her income falls between:
|
| Between
|
But
Not Over |
Base
Tax |
+
Rate |
Of
the Amount Over |
| $29,050 |
$58,625 |
$4,000.00 |
25% |
$29,050 |
Mildred
Filner 's Estimated Taxes
| |
=
Base Tax + (Rate x Amount Over) |
| |
=
$4,000.00 + [.25 x ($58,000 - $29,050)] |
| |
=
$4,000.00 + (.25 x $28,950) |
| |
=
$4,000.00 + $7,237.50 |
| |
=
$11,237.50 |
|
This equation
does not reflect standard deductions, mortgage deductions, or any other
credits that may decrease your estimated taxable income. Use only for
2004 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.
|
