What The Tax Rates For 2007 ?
Note: The graduated rates below are based on TAXABLE INCOME, which is your adjusted gross income reduced by your allowable deductions (either itemized deductions or the standard deduction) and your allowable deduction for personal exemptions.
Rather than do the math required for the calculation of the tax from these schedules, you may find it easier to use the Tax Tables or Schedules contained in the instructions for the form you are filing.
Standard Deduction (add 3 rd column if over age 65 or blind EACH)
Personal exemptions for 2007 are $3,400
Note that both itemized deductions and personal exemptions are subject to phase-outs for certain high income taxpayers. Check Form 1040 instructions.
2007 TAX RATES
Tax Rate on Dividends and Capital Gains
Taxed as a maximum rate of 15% for clients in the higher
brackets and just 5% for taxpayers in the 10% and 15% brackets. This change is
retroactive to Jan. 1, 2003 and is scheduled to remain in effect through 2008,
except in the year 2008 the rate falls to zero for taxpayers in the 10% and 15%
brackets. Beginning Jan. 1, 2009, dividend taxation reverts to current law.
Tax Disclaimer: To ensure compliance with IRS Rules, any U.S. federal tax advice provided in this communication is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer (i) for the purpose of avoiding tax penalties that may be imposed on the recipient or any other taxpayer under the Internal Revenue Code, or (ii) in promoting, marketing or recommending to another party a partnership or other entity, investment plan, arrangement or other transaction addressed herein.
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