Tuesday, March 11, 2008

Upcoming Tax Changes

According to Forbes, here's what to expect through 2011:
Capital Gains Rate
Tax Bracket Above 15%15%15%15%15%20%
Tax Bracket 15% or Below5%0%0%0%10%
Qualified Dividends Rate
Tax Bracket Above 15%15%15%15%15%N/A*
Tax Bracket 15% or Below5%0%0%0%N/A*
Marginal Income Tax Rates
Top Bracket35%35%35%35%39.60%
Fifth Bracket33%33%33%33%36%
Fourth Bracket28%28%28%28%31%
Third Bracket25%25%25%25%28%
Second Bracket15%15%15%15%15%
First Bracket10%10%10%10%N/A
Child Tax Credit$1,000$1,000$1,000$1,000$500
Marriage Penalty Relief
Standard Deduction (% of S.D. for singles)200%200%200%200%N/A
15% Tax Bracket (% of bracket for singles)200%200%200%200%N/A
Repeal (%) of Personal Exemptions Phase-outs33.30%66.60%66.60%100%N/A
Repeal (%) of Limitation on Itemized Deductions33.30%66.60%66.60%100%N/A
AMT Exemption
Married Filing Joint$45,000*$45,000$45,000$45,000$45,000
Head of Household$33,750*$33,750$33,750$33,750$33,750
Estate Tax
Exclusion$2 million$2 million$3.5 millionTax repealed$1 million
Maximum Rate45%45%45%0%55%