|
|
|
| If
Taxpayer's Income Is... |
Then
Estimated Taxes Are... |
| Between
|
But
Not Over |
Base
Tax |
+
Rate |
Of
the Amount Over |
| $0 |
$14,300 |
$0 |
10% |
$0 |
| $14,300 |
$58,100 |
$1,430.00 |
15% |
$14,300 |
| $58,100 |
$117,250 |
$8,000.00 |
25% |
$58,100 |
| $117,250 |
$178,650 |
$22,787.50 |
28% |
$117,250 |
| $178,650 |
$319,100 |
$39,979.50 |
33% |
$178,650 |
| $319,100 |
-
- - - - |
$86,328.00 |
35% |
$319,100 |
|
Example
#1
John
and Mary Richards, two married taxpayers, have TAXABLE INCOME of
$130,000. Richards' income falls between:
|
| Between
|
But
Not Over |
Base
Tax |
+
Rate |
Of
the Amount Over |
| $117,250 |
$178,650 |
$22,787.50 |
28% |
$117,250 |
|
John
& Mary Richards' Estimated Taxes
| |
=
Base Tax + (Rate x Amount Over) |
| |
=
$22,787.50 + [.28 x ($130,000 - $117,250)] |
| |
=
$22,787.50 + (.28 x $12,750) |
| |
=
$22,787.50 + $3,570.00 |
| |
=
$26,357.50 |
Example
#2
Larry
and Linda Edwards, two married taxpayers filing a joint return,
have combined TAXABLE INCOME of $185,000. The Edwards' income falls
between:
|
| Between
|
But
Not Over |
Base
Tax |
+
Rate |
Of
the Amount Over |
| $178,650 |
$319,100 |
$39,979.50 |
33% |
$178,650 |
Larry
& Linda Edwards' Estimated Taxes
| |
=
Base Tax + (Rate x Amount Over) |
| |
=
$39,979.50 + [.33 x ($185,000 - $178,650)] |
| |
=
$39,979.50 + (.33 x $6,350) |
| |
=
$39,979.50 + $2,095.50 |
| |
=
$42,075.00 |
|
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.
|
