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Industry: Email Alert RSS Feedfast tax facts 2001 - Statistical Data Included
California CPA, Nov, 2001
fast tax facts 2001
Special thanks to CalCPA's Committee on Taxation, especially James C.
Counts II, CPA, for compiling this information.
2001 TAX DATA SCHEDULE
2001 2001
Federal California
Gross Income Filing
Threshold if Under 65
Single $7,450 $11,901
Married Filing Jointly 13,400 23,803
Married Filing Separately 2,900 23,803
Head of Household 9,550 11,901
Surviving Spouse 10,500 20,134
California--If over 65, add
$3,750 for each spouse over 65.
For each dependent, add $1,866.
Federal--Add standard deduction
for over 65 and blind.
Unearned Income
Child Under Age 14 1,500
Standard Deductions
Single 4,550 2,960
Married Filing Jointly or 7,600 5,920
Surviving Spouse
Married Filing Separately $3,800 $2,960
Head of Household 6,650 5,920
Additional for 65 and Older or
Blind--Married 900
Additional for 65 and Older
Blind--Unmarried 1,100
(per individual and for each
situation: age or blind)
Taxpayer Claimed as a Dependent 750 750
Personal/Dependent Exemption
(SSN required: $50 penalty) $2,900
California Exemption Credits
Single/Separate or Head $79
of Household
Joint/Surviving Spouse 158
Dependent 247
Blind or Over 65 79
Senior Head of Household Credit
2% of California taxable income,
maximum California AGI of
$51,173 and maximum credit of $964
Joint Custody Head of Household
Credit and Dependent Parent Credit
Each is 30% of net tax, with
maximum credit of $315
Child and Dependent Care Credit
Prcentage of federal credit
California
AGI limits are From-To
0-$40,000 63%
$40,0001-$70,000 53%
$70,001-$100,000 42%
$100,0001 or more 0
Teacher's Retention Credit
Nonrefundable but can reduce
minimum tax below regular tax
based on length of service
At least 4 years, less than 6 years $250
At least 6 years, less than
11 years 500
At least 11 years, less than
20 years 1,000
20 years or more 1,500
California Renter's Credit
Joint/Head-of-Household/Surviving
Spouse if AGI is below $56,018 $120
Single/Married Filing Separate if
AGI is below $28,009 60
Sec. 179 Deduction $24,000 $24,000
Beginning of Personal Exemption
Phaseout
Range--Based on Federal AGI
Single $132,950 $130,831
Married Filing Jointly 199,450 261,664
Married Filing Separately 99,725 130,831
Head of Household 166,200 196,248
Surviving Spouse 199,450 261,664
Beginning of Itemized Deduction
Phaseout Range--Based on AGI
Single $132,950 $130,831
Married Filing Jointly/
Surviving Spouse 132,950 261,664
Married Filing Separately 66,475 130,831
Head of Household 132,950 196,248
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 2.0% 2.0%
Alternative Minimum Thx (AMT) Rate
AMTI Less Exemption up to $175,000 26%
AMTI Less Exemption over $175,000
($87,500 if Married Filing 28%
Separately)
AMTI Less Exemption 7%
AMT Exemption Amounts
Married Filing Jointly/
Surviving Spouse $49,000 $64,152
Single, Head of Household 35,750 48,114
Married Filing Separately, Estates,
Trusts 24,500 32,075
AMT Exemption Phaseout Amounts
Married Filing Jointly/
Surviving Spouse $150,000 $240,567
Single and Head of Household 112,500 180,426
Married Filing Separately and
Estates and Trusts 75,000 120,283
Self-Employed Health Insurance
Adjustment for AGI:
60% of total qualifying payments
for health insurance, federal 60% 60%
and state
Auto Standard Mileage Allowances
Business .345 .345
Charity Work .14 .14
Medical/Moving .12 .12
Maximum Rate SEP-IRA and
Keogh Profit Sharing 13.0435% 13.0435%
Beginning/Ending of U.S. Savings
Bond Interest Exclusion--Based on
modified AGI
Joint Return $83,650/113,650
Unmarried 55,750/70,750
Married Filing Separately No Exclusion
California SDI
(deductible as a tax for
federal purposes) [*]
Wages--Total annual limit $46,327
Rate .9%
Tax 416.94
(*)Amounts paid to voluntary program in lieu of the state programs are
not deductible. Covered by the California Unemployment Insurance Code,
which is administered by the EDD.
Taxable But Of The
Income Not Amount
Is Over Over Pay % Over
2001 FEDERAL TAX
RATE SCHEDULE
Single Individuals
$0 $27,050 $0 15% $0
27,050 65,550 4,057.50 27.5% 27,050
65,550 136,750 14,645.00 30.5% 65,550
136,750 297,350 36,361.00 35.5% 136,750
297,350 and more 93,374.00 39.1% 297,350
Head-of-Household
$0 $36,250 $0 15%
36,250 93,650 5,437.50 27.5%
93,650 151,650 21,222.50 30.5%
151,650 297,350 38,912.50 35.5%
297,350 and more 90,636.00 39.1%
Married Individuals Filing Jointly
and Qualifying widow(er)
$0 $45,200 $0 15%
45,200 109,250 6,780.00 27.5%
109,250 166,500 24,393.75 30.5%
166,500 297,350 41,855.00 35.5%
297,350 and more 88,306.75 39.1%
Married Individuals Filing Separately
$0 $22,600 $0 15%
22,600 54,625 3,390.00 27.5%
54,625 83,250 12,196.88 30.5%
83,250 146,675 20,927.50 35.5%
146,675 and more 44,153.38 39.1%
Estates and Nongrantor Trusts (may be
adjusted for 10% bracket)
$0 $1,800 $0 15%
1,800 4,250 270.00 28%
4,250 6,500 956.00 31%
6,500 8,900 1,653.50 36%
8,900 and more 2,517.50 39.6%
2001 STATE TAX RATE SCHEDULE
Single Individuals, Married Filing
Separately, Fiduciary Tax Returns
$0 $5,748 $0 1.0%
5,748 13,625 57.48 2%
13,625 21,503 215.02 4%
21,503 29,850 530.14 6%
29,850 37,725 1,030.96 8%
37,725 and over 1,660.96 9.3%
Married Filing Jointly, Qualifying
Widow(er)
$0 $11,496 $0 1.0%
11,496 27,250 114.96 2.0%
27,250 43,006 430.04 4.0%
43,006 59,700 1,060.28 6.0%
59,700 75,450 2,061.92 8.0%
75,450 and over 3,321.92 9.3%
Unmarried Head of Household
$0 $11,500 $0 1.0%
11,500 27,250 115.00 2.0%
27,250 35,126 430.00 4.0%
35,126 43,473 745.04 6.0%
43,473 51,350 1,245.86 8.0%
51,350 and over 1,876.02 9.3%
Head-of-Household
$0 $0
36,250 36,250
93,650 93,650
151,650 151,650
297,350 297,350
Married Individuals Filing Jointly
and Qualifying widow(er)
$0 $0
45,200 45,200
109,250 109,250
166,500 166,500
297,350 297,350
Married Individuals Filing Separately
$0 $0
22,600 22,600
54,625 54,625
83,250 83,250
146,675 146,675
Estates and Nongrantor Trusts (may be
adjusted for 10% bracket)
$0 $0
1,800 1,800
4,250 4,250
6,500 6,500
8,900 8,900
2001 STATE TAX RATE SCHEDULE
Single Individuals, Married Filing
Separately, Fiduciary Tax Returns
$0 $0
5,748 5,748
13,625 13,625
21,503 21,503
29,850 29,850
37,725 37,725
Married Filing Jointly, Qualifying
Widow(er)
$0 $0
11,496 11,496
27,250 27,250
43,006 43,006
59,700 59,700
75,450 75,450
Unmarried Head of Household
$0 $0
11,500 11,500
27,250 27,250
35,126 35,126
43,473 43,473
51,350 51,350
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 2001:
Year First Second Third Thereafter
2000 $3,060 $4,900 $2,950 $1,775
2001 3,060 4,900 2,950 1,775
Pensions 2000 2001
PENSION AND FICA LIMITATION AMOUNTS
Maximum 401(k)/403(b) Deferral $10,500 $10,500
Maximum Defined Contribution Plan
Contribution 30,000 40,000
Maximum Annual Benefit for
Defined Benefit Plans 135,000 160,000
Annual Compensation Limit
for Computing Plan Benefits 160,000 170,000
Annual Compensation Limit for the
Definition of Highly Compensated
Employee Sec. 414(q)(1) 85,000 85,000
Compensation Minimum for SEP coverage 450 450
Maximum Contribution of SIMPLES 6,000 6,500
Key Employee for Top Heavy Purposes:
* Officers Earning Over $70,000
* A 5-percent Owner of Employer
* A 1-percent Owner of Employer
Earning Over, or 150,000
* One of the 10 employees earning
more than with largest ownership
interest in employer 35,000
2001 FICA & SE TAX
Maximum FICA Tax Rate
Wage Base $76,200 $80,400
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) $10,080 $10,680
65-70 (or full retirement age) Unlimited Unlimited
Age 70 and older Unlimited Unlimited
If received disability benefits
then the per month limit is 780 830
Medicare Part B Premium 45.50/mo 50.00/mo
CHANGES RESULTING FROM 2001 TAX ACT
Regular Income Tax Rate Reduction
Rate Reduced to:
Calendar Year 28% 31% 36% 39.6%
2001 [*]-03 27% 30% 35% 38.6%
2004-05 26% 29% 34% 37.6%
2006 and later 25% 28% 33% 35.0%
(*)Effective July 1, 2001
GENERATION-SKIPPING TRANSFER TAX
Phaseout and Repeal of Estate, Gift and Generation-skipping Transfer
Taxes
Estate and GST tax Highest estate
Calendar Year deathtime transfer and gift tax rates
exemption
2002 $1 million 50%
2003 1 million 49%
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)
Annual Gift Limitation of $10,000 for 2001 and $11,000 for 2002.
Lifetime Exemption of $1 million after Dec. 31, 2001.
IRA & PENSION HIGHLIGHTS
Tax Credit Rates 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%
Sec. 401(k), Sec. 403(b) Annuity, SEP or Sec. 437 Plans:
Add'l if Elective Deferral
Calendar Year Over 50 Limitation
2002 $1,000 $11,000
2003 2,000 12,000
2004 3,000 13,000
2005 4,000 14,000
2006 and therafter 5,000 15,000
Simple Plans:
2002 $500 $7,000
2003 1,000 8,000
2004 1,500 9,000
2005 2,000 10,000
2006 and therafter 2,500 10,000
MARRIAGE PENALTY RELIF
Phase-In of Increase of Standard Deduction for Married Couples Filing
Joint Returns:
Std. Deduction
Calendar Year 15% Rate [**] Percentage [*]
2005 180% 174%
2006 187% 184%
2007 193% 187%
2008 200% 190%
2009 and later 200% 200%
(*)Standard deduction for joint returns as percentage of standard
deduction for single returns.
(**)End point of 15-percent rate bracket for married couples filing
joint return as percentage of end-point of 15-percent rate bracket
for unmarried individuals. Effective for taxable years beginning after
Dec. 31, 2004.
CHILD-RELATED TAX BENEFITS
Increase of the Child Tax
Credit
Calendar Year Credit Amount Per Child
2001-04 $600
2005-08 700
2009 800
2010 and later 1,000
Modifications to Student Loan Interest Deduction The law increases the
income phase-out ranges
(*)for eligibility for student loan interest deduction to
Filing Status Increase
Single Individual from $50,000 to $65,000
Married Couples Filing
Joint Return from $100,000 to $130,000
(*)Adjusted annually forinflation after 2002.
Effective for interest paid on qualified education loans after Dec. 31,
2001.
Deduction for Qualified Higher Education Costs
Calendar Year Single AGI MFJ AGI Deduction
2002-03 $65,000 [*] $130,000 [*] $3,000
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.
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