|
|
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 |
$59,975 |
$4,090.00 |
25% |
$29,700 |
$59,975 |
$91,400 |
$11,658.75 |
28% |
$59,975 |
$91,400 |
$163,225 |
$20,457.75 |
33% |
$91,400 |
$163,225 |
-
- - - - |
$44,160.00 |
35% |
$163,225 |
Example
#1
Joe
McMurdoch, a married taxpayer filing his own return, has 2005 TAXABLE
INCOME of $85,000. McMurdoch's income falls between:
|
Between
|
But
Not Over |
Base
Tax |
+
Rate |
Of
the Amount Over |
$59,975 |
$91,400 |
$11,658.75 |
28% |
$59,975 |
Joe
McMurdoch's Estimated Taxes
|
=
Base Tax + (Rate x Amount Over) |
|
=
$11,658.75 + [.28 x ($85,000 - $59,975)] |
|
=
$11,658.75 + (.28 x $25,025) |
|
=
$11,658.75 + $7,007.00 |
|
=
$18,665.75 |
Joe's
total tax dropped over $110.00 from his 2004 tax return, using the
2004 income tax rate
table for married filing separate taxpayers.
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 |
$29,700 |
$59,975 |
$4,090.00 |
25% |
$29,700 |
Mildred
Filner 's Estimated Taxes
|
=
Base Tax + (Rate x Amount Over) |
|
=
$4,090.00 + [.25 x ($58,000 - $29,700)] |
|
=
$4,090.00 + (.25 x $28,300) |
|
=
$4,090.00 + $7,075.00 |
|
=
$11,165.00 |
For
2005, Mildred also experienced a lower tax bill. Her total tax
dropped over $60.00 from her 2004 tax return, using the 2004
income tax rate table for married filing separate 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.
|