Personal income taxes: Important changes for 2003 — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
  • LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Personal income taxes: Important changes for 2003

Get PDF file

by on
in Small Business Tax,Small Business Tax Deduction Strategies

Lower rates. The 27, 30, 35 and 38.6 percent individual federal rates that applied for 2002 are reduced to 25, 28, 33 and 35 percent, respectively, for 2003. The 10 and 15 percent federal rates are unchanged.

Higher standard deduction. In an effort to reduce the marriage penalty, the 2003 standard deduction for married joint filers is dramatically increased to $9,500 (versus only $7,850 for 2002). The 10 and 15 percent tax brackets for joint filers are widened to double the brackets for single filers.

If you file using married-filing-separate status, your 2003 standard deduction is significantly increased to $4,750 (up from only $3,925 in 2002). The 10 and 15 percent tax brackets are now the same as for singles.

Lower capital gains and dividend tax rate. The maximum tax rate on long-term capital gains dropped from 20 percent to 15 percent for investments sold after May 5, 2003. (For more advice, see page 2.)

...(register to read more)

To read the rest of this article you must first register with your email address.

Email Address:

Leave a Comment

Previous post:

Next post: