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Employers can provide a bit more tax-free park- for marrieds filing jointly, $142,700 for singles and
<br /> ing: $195 a month. The limit on tax-free transit passes $178,350 for heads of household. They disappear
<br /> they can give stays at $100 a month. completely above $336,550 for joint returns, $265,200
<br /> for singles and 5300,850 for heads of household.
<br /> Higher Standard Deductions
<br /> Standard deductions rise to adjust for inflation. Estate and Gift Tax Easings
<br /> For marrieds, the deduction is $9,700. It rises to Both estate and gift taxes become slightly less bur-
<br /> $10,650 if one spouse is 65 and to $11,600 if both are. densome in 2004.
<br /> For singles, the deduction is $4,850; $6,050 if 65. The lifetime annual exemption jumps to $1.5
<br /> Heads of household can take $7,150, or $8,300 if 65. million, a rise of 5500,000. But note that the gift tax
<br /> The cutback in itemized deductions starts at a exclusion remains $11,000.
<br /> higher income level in 2uu4. It is decreased by 3% of The top estate and gift tax rate falls to 48%, a 1%
<br /> AGI over 5142.700, whether the taxpayer is married reduction. The lower rate kicks in for estates and gifts
<br /> or single. of more than S2.5 million.
<br /> The personal exemption is $3,100 each for you, Special estate tax valuation of real estate is higher
<br /> your spouse and each dependent. for 2004. Up to $850,000 of farm or business realty
<br /> But the exemptions phase out as your income in- can receive discount valuation. But the credit for
<br /> creases by 2% for each $2,500 of AGI above $214,050 state estate taxes is smaller in 2004.
<br /> The New Personal Income Tax Brackets for 2004
<br /> The following tax tables reflect all income'tax rate reductions and bracket expansions.
<br /> MARRIEDS
<br /> If taxable Income Is The buck
<br /> Not more than $14,300 104601 taxable incote P w
<br /> ��ry wa'Y:.,.t3`F�^a'�a' �» '� . F"� '
<br /> Over$14,300 but not more U $581 a e)t„ x> , $1 00
<br /> as � ��sr a x.���-, w s , ,� ^� >� r
<br /> Over$58,100 but not more than$117 20 $82140 OO±25%of excess
<br /> '-�a s f� xa + '°�a„vn SOY&r• "P`,` fX��°'°s����-
<br /> Over$117,250 but not more than$178,650 $ 2,7875E}+28%ofexcessover 250
<br /> Over$178,650 but not more then $319,100 $39,979.50+33%of excess over$178,650
<br /> Over$319,100 �; � - $86328.00+35%af excess over 1t0;100; v'w`
<br /> SINGLES - s ,,1� ,� ,
<br /> F+•
<br /> If taxable Income Is ,1 fli,;> The tax Is:::< p k q '072:
<br /> Not more than $7,150 10%of taxable income ` ilr11-;`,-t< el,+
<br /> Over$7,150 but not more than$29,050 $715.00+ 15%of excess over$7,150 ,. v`.
<br /> Over$29,050 but not more than $70,350 $4,000.00+25%of excess over$29,050 ?
<br /> Over$70,350 but not more than $146,750 $14,325.00 + 28%of excess over$70,350
<br /> Over$146,750 but not more than $319,100 $35,717.00 +33%of excess over$146,750
<br /> Over $319,100 $92,592.50+ 35% of excess over$319,100
<br /> rg;
<br /> HEADS OF HOUSEHOLD tt
<br /> If taxable Income Is The tax Is ;:: t"'§I.,"` , `
<br /> Not more than $10,200 10%of taxable income f ' ; ' ;;:
<br /> Over$10,200 but not more than $38,900 $1,020.00 + 15%of excess over$10,200
<br /> Over$38,900 but not more than $100,500 $5,325.00+25%of excess over$38,900 '✓ '`''-
<br /> fi
<br /> Over$100,500 but not more than $162,700 $20,725.00 + 28%of excess over$100,500
<br /> x),
<br /> Over $162,700 but not more than $319,100 $38,141.00 + 33%of excess over$162,700 :1 t n
<br /> Over$319,100 $89,753.00+35%of excess over$319,100 .er' A
<br /> LL
<br /> WHAT'S AHEAD FOR 2004 19
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