|
|
|
| If
Taxpayer's Income Is... |
Then
Estimated Taxes Are... |
| Between
|
But
Not Over |
Base
Tax |
+
Rate |
Of
the Amount Over |
| $0 |
$10,450 |
$0 |
10% |
$0 |
| $10,450 |
$39,800 |
$1,045.00 |
15% |
$10,450 |
| $39,800 |
$102,800 |
$5,447.50 |
25% |
$39,800 |
| $102,800 |
$166,450 |
$21,197.50 |
28% |
$102,800 |
| $166,450 |
$326,450 |
$39,019.50 |
33% |
$166,450 |
| $326,450 |
-
- - - - |
$91,819.50 |
35% |
$326,450 |
|
Example
#1
Mary
Ann Smith, a timely taxpayer, has 2005 TAXABLE INCOME of $125,000.
Smith's income falls between:
|
| Between
|
But
Not Over |
Base
Tax |
+
Rate |
Of
the Amount Over |
| $102,800 |
$166,450 |
$21,197.50 |
28% |
$102,800 |
|
Mary
Ann Smith's Estimated Taxes
| |
=
Base Tax + (Rate x Amount Over) |
| |
=
$21,197.50 + [.28 x ($125,000 - $102,800)] |
| |
=
$21,197.50 + (.28 x $22,200) |
| |
=
$21,197.50 + $6,216.00 |
| |
=
$27,413.50 |
Mary
Ann's total tax dropped over $170.00 from her 2004 tax return, using
the 2004 income tax
rate table for heads of household.
Example
#2
Michael
Doerty, a father and the head of his household, has an estimated
TAXABLE INCOME of $62,000. Doe's income falls between:
|
| Between
|
But
Not Over |
Base
Tax |
+
Rate |
Of
the Amount Over |
| $39,800 |
$102,800 |
$5,447.50 |
25% |
$39,800 |
Michael
Doerty's Estimated Taxes
| |
=
Base Tax + (Rate x Amount Over) |
| |
=
$5,447.50 + [.25 x ($62,000 - $39,800)] |
| |
=
$5,447.50 + (.25 x $22,200) |
| |
=
$5,447.50 + $5,550.00 |
| |
=
$10,997.50 |
Michael
also saved over the previous year. His total tax dropped over
$100.00 from his 2004 tax return, using the 2004
income tax rate table for heads of household.
|
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.
|
