Single Taxpayers
Standard Deduction - $4,850

Married Jointly & Surviving Spouses
Standard Deduction - $9,700

10%

0 - 7,150

10%

0 - 14,300

15%

7,151 - 29,050

15%

14,301 - 58,100

25%

29,051 - 70,350

25%

58,101 - 117,250

28%

70,351 - 146,750

28%

117,251 - 178,650

33%

146,751 - 319,100

33%

178,651 - 319,100

35%

Over 319,100

35%

Over 319,100

Married Filing Separately
Standard Deduction - $4,850

Head of Household
Standard Deduction - $7,150

10%

0 - 7,150

10%

1 - 10,200

15%

7,151 - 29,050

15%

10,201 - 38,900

25%

29,051 - 58,625

25%

38,901 - 100,500

28%

58,626 - 89,325

28%

100,501 - 162,700

33%

89,326 - 159,550

33%

162,701 - 319,100

35%

Over 159,550

35%

Over 319,100

Estates and Trusts

15%

1 - 1,950

25%

1,951 - 4,600

28%

4,601 - 7,000

33%

7,001 - 9,550

35%

Over 9,550

Miscellaneous

2004 Tax Rates

Business equipment expensing deduction

$102,000

Maximum deduction for interest on higher education loans

$2,500

Prior-year safe harbor for estimated taxes of higher-income

110% of your 2003 tax liability

Standard mileage rate for business driving

37.5 cents

Unearned income maximum for children before kiddie tax applies

$800

Luxury excise tax on new cars costing more than $40,000

Tax eliminated

Maximum capital gains tax rate for taxpayers in the 10% or 15% tax bracket

5%

Maximum capital gains tax rate for taxpayers above the 15% bracket

15%

Capital gains tax rate for unrecaptured Sec. 1250 gains

25%

Capital gains tax rate on collectibles

28%

Maximum employee contribution to SIMPLE retirement plans

$8,000 if under age 50
$9,000 if 50 or older

401(k) maximum employee contribution limit

$13,000 if under age 50
$16,000 if 50 or older

Self-employed health insurance deduction

100%

Estate tax exemption

$1,500,000

Annual Exclusion for Gifts

$11,000