Fast tax facts 2004: as of Oct. 13, 2004.Welcome to our annual at-a-glance compilation Compiling a program. See compiler. of federal and state tax information. User-friendly user-friendly - Programmer-hostile. Generally used by hackers in a critical tone, to describe systems that hold the user's hand so obsessively that they make it painful for the more experienced and knowledgeable to get any work done. tax rate schedules, facts, figures and assorted data make this time-saving time-saving adj → que ahorra tiempo time-saving adj → qui fait gagner du temps time-saving time adj → section a handy companion. Keep it within arm's reach reach of the arm; the distance the arm can reach. See also: Arm as you enter the upcoming busy season. POST-9/11 BONUS DEPRECIATION California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). has not adopted the following provisions: Additional 30 percent immediate write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. for new property: * Acquired after Sept. 11, 2001 and before May 6, 2003 * Recovery period must be 20 years or less Additional 50 percent immediate write-off for new property: * Acquired after May 5, 2003 and before Jan. 1, 2005 * Recovery period must be 20 years or less Additional depreciation for vehicles: * Vehicles acquired within time period mentioned above can claim an additional $4,600 (total $7,600) of depreciation in 2002 and Jan. 1, 2003-May 5, 2003 (to be adjusted for business use percentage). Vehicles placed in service May 6, 2003 or later can claim an additional $7,660 (total $10,710) of depreciation. VALUABLE PHONE NUMBERS Tax Practitioner practitioner /prac·ti·tion·er/ (prak-tish´un-er) one who has met the requirements of and is engaged in the practice of medicine, dentistry, or nursing. nurse practitioner see under nurse. Hotlines Hotlines was an American reality television series about adventures in exotic, fun hotspots. The series was hosted by Deirdre Delaney, Scott Gurney, Ivana Bozilovic and Stacy Kamano, the first two of whom were also its producers. IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. Practitioner Priority Service (866) 860-4259 IRS--ACS (800) 829-7650 FTB FTB Franchise Tax Board (California; they collect income and sales tax) FTB Family Tax Benefit (Australian welfare assistance) FTB First Time Buyer (housing) (916) 845-7057 Fax (916) 845-6377 EDD Noun 1. EdD - a doctor's degree in education DEd, Doctor of Education doctor's degree, doctorate - one of the highest earned academic degrees conferred by a university (916) 654-8316 BOE BOE Based on Experience BOE Board of Education BOE Boletín Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip (800) 401-3661 Application for Taxpayer ID Number Tele-TIN (800) 829-4933 Fax (215) 516-3990 Online: www.irs.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. EDD DE 1 Account Number (916) 654-8706 Fast Tax Facts is FACTS I Federal Agencies' Centralized Trial-Balance System designed to provide general guidance to CalCPA members. CalCPA is not engaged in rendering See render. (graphics, text) rendering - The conversion of a high-level object-based description into a graphical image for display. For example, ray-tracing takes a mathematical model of a three-dimensional object or scene and converts it into a bitmap image. accounting or other professional advice. Numbers in Fast Tax Facts are subject to change.
2004 TAX DATA SCHEDULE
2004 2004
Federal California
Standard Deductions
Single $4,850 $3,165
Married Filing Jointly or Surviving 9,700 6,330
Spouse
Married Filing Separately 4,850 3,165
Head of Household 7,150 6,330
Additional for 65 and Older or
Blind--Married 950
Additional for 65 and Older
Blind--Unmarried 1,200
(per individual and for each situation:
age or blind)
Taxpayer Claimed as a Dependent 800 800
Personal/Dependent Exemption 3,100
(SSN required: $50 penalty)
California Exemption Credits
Single/Separate or Head of Household $85
Joint/Surviving Spouse $170
Dependent 265
Blind or Over 65 85
Senior Head of Household Credit
2% of California taxable income,
maximum California AGI of
$59,730 and maximum credit of $1,031
Joint Custody Head of Household Credit
and Dependent Parent Credit
Each is 30% of net tax, with maximum $337
credit of
Child and Dependent Care Credit
Percentage of federal credit California
AGI limits are From-To
0-$40,000 50%
$40,0001-$70,000 43%
$70,001-$100,000 34%
$100,0001 or more 0%
Teacher's Retention Credit
This California tax credit has been suspended for taxable years 2004
and 2005.
California Renter's Credit
Joint/Head-of-Household/Surviving Spouse
if AGI is below $50,000 $120
Single/Married Filing Separate if AGI
is below $25,000 60
Sec. 179 Deduction $100,000 $25,000
Beginning of Personal Exemption Phaseout
Range--Based on Federal AGI
Single $142,700 $139,921
Married Filing Jointly 214,050 279,846
Married Filing Separately 107,025 139,921
Head of Household 178,350 209,885
Surviving Spouse 214,050 279,846
Beginning of Itemized Deduction Phaseout Range--Based on AGI
Single $142,700 $139,921
Married Filing Jointly/Surviving Spouse 142,700 279,846
Married Filing Separately 71,350 139,921
Head of Household 142,700 209,885
Rate Reduced over federal AGI limits 3% 6%
Schedule A Threshold/Limits Medical (of
AGI)
based on federal threshold 7.5% 7.5%
Miscellaneous (of AGI)
based on federal threshold 2% 2%
Alternative Minimum Tax (AMT) Rate
AMTI Less Exemption up to $175,000 26%
AMTI Less Exemption over $175,000
($87,500 if Married Filing Separately) 28%
AMTI Less Exemption 7%
AMT Exemption Amounts
Married Filing Jointly/Surviving Spouse $58,000 $68,610
Single, Head of Household 40,250 51,457
Married Filing Separately, Estates, 29,000 34,303
Trusts
AMT Exemption Phaseout Amounts
Married Filing Jointly/Surviving Spouse $150,000 $257,284
Single and Head of Household 112,500 192,963
Married Filing Separately and
Estates and Trusts 75,000 128,641
Self-Employed Health Insurance
Adjustment for AGI:
Percentage of total qualifying payments
for health insurance 100% 100%
Auto Standard Mileage Allowances
Business .375 .375
Charity Work .14 .14
Medical/Moving .14 .14
Maximum Rate SEP-IRA and Keogh Profit 20% 20%
Sharing
Beginning/Ending of U.S. Savings Bond Interest Exclusion--Based on
modified AGI
Joint Return $89,750/119,750
Unmarried 59,850/74,850
Married Filing Separately No Exclusion
California SDI
(deductible as a tax for federal
purposes) *
Wages--Total annual limit $68,829
Rate 1.18%
Tax 812.18
* Amounts paid to a voluntary program in lieu of the state programs are
not deductible, but may be creditable on Form 540 with multiple
employers.
2004 FEDERAL TAX RATE SCHEDULE
Taxable But Of The
Income Not Amount
Is Over Over Pay +% Over
Single Individuals
$0 $7,150 $0 10% $0
7,150 29,050 715.00 15% 7,150
29,050 70,350 4,000.00 25% 29,050
70,350 146,750 14,325.00 28% 70,350
146,750 319,100 35,717.00 33% 146,750
319,100 and more 92,502.50 35% 319,100
Head-of-Household
$0 $10,200 $0 10% $0
10,200 38,900 1,020 15% 10,200
38,900 100,500 5,325 25% 38,900
100,500 162,700 20,725 28% 100,500
162,700 319,100 38,141 33% 162,700
319,100 and more 89,753 35% 319,100
Married Individuals Filing Jointly and Qualifying
widow(er)
$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 and more 86,328.00 35% 319,100
Married Individuals Filing Separately
$0 $7,150 $0 10% $0
7,150 29,050 715 15% 7,150
29,050 58,625 4,000 25% 29,050
58,625 89,325 11,393.75 28% 58,625
89,325 159,550 19,909.75 33% 89,325
159,550 and more 43,164.00 35% 159,550
Estates and Nongrantor Trusts
$0 $1,950 $0 15% $0
1,950 4,600 292.50 25% 1,950
4,600 7,000 955.00 28% 4,600
7,000 9,550 1,627.00 33% 7,000
9,550 and more 2,468.50 35% 9,550
2004 STATE TAX RATE SCHEDULE
Single Individuals, Married Filing
Separately, Fiduciary Tax Returns
$0 $6,147 $0 1.0% $0
6,147 14,571 61.47 2.0% 6,147
14,571 22,997 229.95 4.0% 14,571
22,997 31,925 566.99 6.0% 22,997
31,925 40,346 1,102.67 8.0% 31,925
40,346 and more 1,776.35 9.3% 40,346
Married Filing Jointly, Qualifying
Widow(er)
$0 $12,294 $0 1.0% $0
12,294 29,142 122.94 2.0% 12,294
29,142 45,994 459.90 4.0% 29,142
45,994 63,850 1,133.98 6.0% 45,994
63,850 80,692 2,205.34 8.0% 63,850
80,692 and more 3,552.70 9.3% 80,692
Unmarried Head of Household
$0 $12,300 $0 1.0% $0
12,300 29,143 123.00 2.0% 12,300
29,143 37,567 459.86 4.0% 29,143
37,567 46,494 796.82 6.0% 37,567
46,494 54,918 1,332.44 8.0% 46,494
54,918 and more 2,006.36 9.3% 54,918
LUXURY AUTO LIMIT
Taxpayers leasing so-called "luxury" autos must add back an amount to
income to offset the full deduction of these payments. The luxury auto
limits have not changed for 2003, but see post-9/11 depreciation
section:
Year First Second Third Thereafter
2003 7,660 4,900 2,950 1,775
2004 10,710 4,800 2,850 1,675
FICA & SE TAX
2003 2004
Maximum FICA Tax Rate
Wage Base $87,000 $87,900
FICA Tax Rate 6.2% 6.2%
SE Tax Rate 12.4% 12.4%
Maximum Medicare
HI Wage Base Unlimited Unlimited
Medicare HI Rate 1.45% 1.45%
Medicare HI Rate--SE 2.9% 2.9%
Maximum Total
FICA/Medicare or SE Tax Unlimited Unlimited
Earned Income Ceilings for Social Security Benefits
Under age 65
(or full retirement age) $11,520 $11,640
65-70 (or full retirement age) Unlimited Unlimited
Age 70 and older Unlimited Unlimited
Medicare Part B Premium $66.60/mo $66.60/mo
RETIREMENT PLAN LIMITATIONS
2003 2004
Maximum 401(k)/403(b) Deferral $12,000 $13,000
Maximum Defined Contribution Plan
Contribution 40,000 41,000
Maximum Annual Benefit for
Defined Benefit Plans 160,000 165,000
Annual Compensation Limit
for Computing Plan Benefits 200,000 205,000
Annual Compensation Limit for the
Definition of Highly Compensated
Employee Sec. 414(q)(1) 90,000 90,000
Compensation Minimum for SEP coverage 450 450
Maximum Contribution for SIMPLES 8,000 9,000
Catch-up Contribution (taxpayers 50 and older) 2,000 * 3,000
* Applies to deferral plans only.
Key Employee for Top Heavy Purposes:
* Officers Earning Over $130,000
* A 5-percent Owner of Employer
* A 1-percent Owner of Employer Earning Over $150,000
TRADITIONAL AND ROTH IRAS
2003 2004
Contribution Limit $3,000 $3,000
Catch-up Contribution (50 and 500 500
older)
IRA Deduction Phaseout for Active
Participants
Single 40,000-50,000
Married filing jointly 60,000-70,000
IRA Deduction Phaseout for Spousal Contributions
Married Filing jointly 150,000-160,000
Roth IRA Contribution
Single 95,000-110,000
Married Filing Jointly 150,000-160,000
Married Filing Separately $0-10,000
Roth IRA Conversion Phaseout
Single 100,000
Married Filing Jointly 100,000
Married Filing Separately Ineligible
IRA & PENSION CREDIT
Tax Credit Based on AGI for Various Pension/IRA Plans:
Joint Filers Head-of-Households All Other Filers Credit Rate
$0-$30,000 $0-$22,500 $0-$15,000 50%
30,000-32,500 22,500-24,375 15,000-16,250 20%
32,500-50,000 24,375-37,500 16,250-25,000 10%
Over 50,000 Over 37,500 Over 25,000 0%
ESTATE AND GIFT TAX
Phaseout and Repeal of Estate and Generation-Skipping Transfer Taxes
Estate/GST tax Highest estate and
Calendar Year deathtime transfer exemption gift tax rates
2004 1.5 million 48%
2005 1.5 million 47%
2006 2 million 46%
2007-08 2 million 45%
2009 3.5 million 45%
2010 N/A (taxes repealed) top individual rate
under the bill
(gift tax only)
Gift tax:
Annual Gift Limitation of $11,000 for 2002 and later years.
Lifetime Exemption of $1 million after Dec. 31, 2001.
EDUCATION-RELATED TAX BENEFITS
Deduction for Qualified Higher Education Costs
Calendar Year Single AGI MFJ AGI Deduction
2004-05 65,000 130,000 4,000
2004-05 80,000 * 160,000 * 2,000
* Taxpayers with AGI above these thresholds are not entitled to a
deduction.
Coverdell Educational Savings Accounts
Annual Contribution Limit $2,000
Income eligibility
MFJ $190,000 *
Single $95,000
* As a couple's income increases from $190,000 to $220,000, their
contribution limit phases out.
Qualified Tuition Programs
Deduct $3,000 in higher education expenses
Beginning income phase-out range:
Single $50,000
MFJ $100,000
Student Loan Deductions
* Deduct interest for life of loan
Beginning income phase-out range:
Single $50,000
MFJ $100,000
2004 ABOVE LINE DEDUCTIONS
Qualified teacher expenses deductible for AGI $250
Deduction for clean-fuel vehicles * $1,500
* Currently certified are the 2001, 2002, 2003 and 2004 Toyota Prius, as
well as the 2003 Honda Civic Hybrid. Return for year vehicle is first
used can be amended to take deduction. Watch for other models of
hybrid gas-electric vehicles to be certified.
Special thanks to the CalCPA Committee on Taxation, especially Chair John DiCarlo, CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. ; Mary Kay Mary Kay is a brand of skin care and color cosmetics sold by Mary Kay Inc. Mary Kay World Headquarters is located in the Dallas suburb of Addison, Texas. Mary Kay Ash (d. November 22, 2001) founded Mary Kay Inc. on Friday, September 13, 1963. Foss, CPA; and Michael O'Connor Michael O'Connor can refer to more than one person:
tr.v. com·piled, com·pil·ing, com·piles 1. To gather into a single book. 2. To put together or compose from materials gathered from several sources: this information. The online version of Fast Tax Facts will be updated for tax law changes. Check it out at www.calcpa.org/fasttaxfacts. |
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