Tax
Facts at a Glance
|
|
This information on this
page is provided to assist businesses and individuals. It
is accurate to the best of our knowledge. |
|
However, nothing on this
page should be used to answer any particular financial question or
be considered professional advice. |
|
Please
contact us for specific advice. |
|
|
|
Deductions
For the 2002 Tax Year
|
| |
Federal |
California |
| Standard
Deductions |
| Single |
$4,700 |
$3,004 |
| Married Filing Jointly or
Surviving Spouse |
$7,850 |
$6,008 |
| Married Filing Separately |
$3,925 |
$3,004 |
| Head of Household |
$6,900 |
$6,008 |
| Additional for 65 or Older or
Blind - Married |
$900 |
(per
individual and for each situation: age or blindness) |
| Additional for 65 and Older Blind
- Unmarried |
$1,150 |
| Taxpayer claimed as a dependent
|
$750 |
$750 |
|
Personal/Dependent
Exemption
Social Security Number is required - $50 penalty |
$3,000 |
|
|
 |
|
 |
Automobile Standard Mileage Allowances
|
| |
2002 |
|
| Business |
.365/mile |
|
| Charity |
.14/mile |
|
| Medical/Moving |
.13/mile |
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California
Credits
For the 2002 Tax Year
|
| |
|
California |
| California
Exemption Credits |
|
Single/Separate or Head of Household |
|
$80 |
| Joint/Surviving Spouse |
|
$160 |
| Dependent |
|
$251 |
| Blind or over 65 |
|
$80 |
|
Senior Head of Household
Credit |
2% of California taxable
income, maximum California AGI
of $51,941 and maximum credit of $979 |
|
Joint Custody Head of
Household Credit - and -
Dependent Parent Credit |
Each is 30% of net tax, with maximum
credit of $320 |
|
Child and Dependent Care
Credit
California allows a percentage of federal credit based on
the California AGI .
California allows these credits: |
|
California
AGI from $0 to
$40,000 |
|
63% |
|
California
AGI from $40,001
to $70,000 |
|
53% |
|
California
AGI from $70,001
to $100,000 |
|
42% |
|
California
AGI over $100,001 |
|
0% |
|
Teacher's
Retention Credit
This credit has been suspended for taxable year 2002 |
|
Renter's
Credit |
|
Joint/Head-of-Household/Surviving
Spouse if AGI is
below $56,858 |
|
$120 |
|
Single/Married Filing Separate if
AGI is below $28,429 |
|
$60 |
|
|
|
Tax Data
for Tax Year 2002 unless otherwise indicated
|
| |
Federal |
California |
| Section 179
Deduction |
$24,000 |
$24,000 |
|
Beginning of Personal
Exemption Phase-out
Range based on Federal AGI
|
| Single |
$137,300 |
$132,793 |
| Married Filing Jointly |
$206,000 |
$265,589 |
| Married Filing
Separately |
$103,000 |
$132,793 |
| Head of Household |
$171,650 |
$199,192 |
| Surviving Spouse |
$206,000 |
$265,589 |
|
Beginning of Itemized
Deduction Phase-out
Range based on AGI
|
| Single |
$137,300 |
$132,793 |
| Married Filing
Jointly/Surviving Spouse |
$137,300 |
$265,589 |
| Married Filing
Separately |
$68,650 |
$132,793 |
| Head of Household |
$137,300 |
$199,192 |
| 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% |
2% |
|
Alternative Minimum
Tax (AMT) Rate |
|
AMTI Less Exemption up to $175,000 |
26% |
|
AMTI Less Exemption over $175,000
($87,500) if Married Filing Separately |
28% |
|
|
AMTI Less Exemption |
|
7% |
|
AMT Exemption Amounts |
| Married Filing
Jointly/Surviving Spouse |
$49,000 |
$65,114 |
| Single, Head of
Household |
$35,750 |
$48,836 |
| Married Filing
Separately, Estates and Trusts |
$35,750 |
$32,556 |
|
AMT Exemption
Phase-out Amounts |
| Married Filing
Jointly/Surviving Spouse |
$150,000 |
$244,176 |
| Single and Head of
Household |
$112,500 |
$183,132 |
| Married Filing
Separately, Estates, and Trusts |
$112,500 |
$122,087 |
|
Self-Employed Health
Insurance
Adjustment for AGI
: |
| Percentage of total
qualifying payments for health insurance |
70% |
70% |
|
Maximum Rate
SEP -IRA
and Keogh Profit Sharing |
20% |
20% |
|
Beginning/Ending of
U.S. Savings Bond Interest Exclusion
Based on Modified AGI
|
| Joint Return |
$86,400/116,400 |
|
| Unmarried |
$57,600/72,600 |
|
| Married Filing
Separately |
No
Exclusion |
|
|
California SDI
(Deductible as a tax for federal purposes. Amounts paid
to a voluntary program in lieu of the state programs are not
deductible, but may be creditable on From 540 with multiple
employees.) |
| |
2002 |
|
| Wages – Total annual
limit |
$46,327 |
| Rate |
.9% |
| Tax |
$416.94 |
|
|
|
|
|
Federal Tax Rate
Schedule
2002
|
|
Taxable Income is Over |
But Not over |
Pay |
+ % |
Of the Amount Over |
|
Single Individuals |
| $0 |
$6,000 |
$0 |
10% |
$0 |
| $6,000 |
$27,950 |
$600 |
15% |
$6,000 |
| $27,950 |
$67,700 |
$3,892.50 |
27% |
$27,950 |
| $67,700 |
$141,250 |
$14,625 |
30% |
$67,700 |
| $141,250 |
$307,050 |
$36,690 |
35% |
$141,250 |
| $307,050 |
and more |
$94,720 |
38.6% |
$307,050 |
|
Head of
Household |
| $0 |
$10,000 |
$0 |
10% |
$0 |
| $10,000 |
$37,450 |
$1,000 |
15% |
$10,000 |
| $37,400 |
$96,700 |
$5,117.50 |
27% |
$37,450 |
| $96,700 |
$156,600 |
$21,115 |
30% |
$96,700 |
| $156,600 |
$307,050 |
$39,085 |
35% |
$156,600 |
| $307,050 |
and more |
$91,742.50 |
38.6% |
$307,050 |
|
Married
Individuals Filing Jointly and Qualifying widow(er) |
| $0 |
$12,000 |
$0 |
10% |
$0 |
| $12,000 |
$46,700 |
$1,200 |
15% |
$12,000 |
| $46,700 |
$112,850 |
$6,405 |
27% |
$46,700 |
| $112,850 |
$171,950 |
$24,265.50 |
30% |
$112,850 |
| $171,950 |
$307,050 |
$41,995.50 |
35% |
$171,950 |
| $307,050 |
and more |
$89,280.50 |
38.6% |
$307,050 |
|
Married
Individuals Filing Separately |
| $0 |
$6,000 |
$0 |
10% |
$0 |
| $6,000 |
$23,350 |
$600 |
15% |
$6,000 |
| $23,350 |
$56,425 |
$3,202.50 |
27% |
$23,350 |
| $56,425 |
$85,975 |
$12,132.75 |
30% |
$56,425 |
| $85,975 |
$153,525 |
$20,997.75 |
35% |
$85,975 |
| $153,525 |
and more |
$44,640.25 |
38.6% |
$153,525 |
|
Estates and Non-Grantor Trusts |
| $0 |
$1,850 |
$0 |
15% |
$0 |
| $1,850 |
$4,400 |
$277.50 |
27% |
$1,850 |
| $4,400 |
$6,750 |
$966 |
30% |
$4,400 |
| $6,750 |
$9,200 |
$1,671 |
35% |
$6,750 |
| $9,200 |
and more |
$2,528.50 |
38.6% |
$9,200 |
|
|
|
|
|
California Tax Rate Schedule
2002
|
|
Taxable Income is Over |
But Not over |
Pay |
+ % |
Of the Amount Over |
|
Single Individuals, Married Filing Separately, Fiduciary Tax
Returns |
| $0 |
$5,834 |
$0 |
1% |
$0 |
| $5,834 |
$13,829 |
$58.34 |
2% |
$5,834 |
| $13,829 |
$21,826 |
$218.25 |
4% |
$13,829 |
| $21,826 |
$30,298 |
$538.09 |
6% |
$21,826 |
| $30,298 |
$38,291 |
$1,046.42 |
8% |
$30,298 |
| $38,291 |
and more |
$1,685.87 |
9.3% |
$38,291 |
|
Married Filing
Jointly, Qualifying Widow(er) |
| $0 |
$11,668 |
$0 |
1% |
$0 |
| $11,668 |
$27,659 |
$116.68 |
2% |
$11,668 |
| $27,659 |
$43,651 |
$436.49 |
4% |
$27,659 |
| $43,651 |
$60,596 |
$1,076.18 |
6% |
$43,651 |
| $60,596 |
$76,582 |
$2,092.85 |
8% |
$60,596 |
| $76,582 |
and more |
$3,371.75 |
9.3% |
$76,582 |
|
Unmarried Head
of Household |
| $0 |
$11,673 |
$0 |
1% |
$0 |
| $11,673 |
$27,659 |
$116.73 |
2% |
$11,673 |
| $27,659 |
$35,653 |
$436.45 |
4% |
$27,659 |
| $35,653 |
$44,125 |
$756.22 |
6% |
$35,653 |
| $44,125 |
$52,120 |
$1,264.55 |
8% |
$44,125 |
| $52,120 |
and more |
$1,904.16 |
9.3% |
$52,120 |
|
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|
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|
Luxury
Auto Depreciation Limit
|
|
The luxury auto limited did not change for
2002, but see Post-9/11 Depreciation information. |
|
Year |
1st Year |
2nd Year |
3rd Year |
4th Year |
| 2001 |
$3,060 |
$4,900 |
$2,950 |
$1,775 |
| 2002 |
$3,060 |
$4,900 |
$2,950 |
$1,775 |
|
|
|
|
|
FICA
and Self Employment Tax
2001 and 2002
|
| |
2001 |
2002 |
| Maximum FICA Tax Rate |
| Wage Base (Income subject to Social
Security Tax) |
$80,400 |
$84,900 |
| 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
Self-Employment Rate |
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 |
$11,280 |
| 65-70 (or full retirement age) |
Unlimited |
Unlimited |
| Age 70 and older |
Unlimited |
Unlimited |
| Medicare Part B Premium |
$50/month |
$54/month |
|
|
|
|
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|
| |
2001 |
2002 |
| Maximum 401(k)/403(b) Deferral |
$10,500 |
$11,000 |
| Maximum Defined Contribution Plan
Contribution |
$35,000 |
$40,000 |
| Maximum Annual Benefit for Defined
Benefit Plans |
$140,000 |
$160,000 |
| Annual Compensation Limit for Computing
Plan Benefits |
$170,000 |
$200,000 |
| Annual Compensation Limit for the
Definition of Highly Compensated Employee, Section 414 (q) (1) |
$85,000 |
$90,000 |
| Compensation Minimum for SEP coverage |
$450 |
$450 |
| Maximum Contribution for
SIMPLES |
$6,000 |
$7,000 |
Catch-up Contribution (taxpayers 50 and
older)
Applies to deferral plans only |
|
$1,000 |
|
Key Employee for Top Heavy
Purposes
A "Key Employee" is one of these three: |
|
|
|
$130,000 |
- A 5% Owner of Employer earning any amount
|
- A 1% Owner of Employer earning over
|
|
$150,000 |
|
|
|
|
Traditional and Roth
IRA's
2001 and 2002
|
| |
2001 |
2002 |
| Contribution Limit |
$2,000 |
$3,000 |
| Catch-up Contribution (50 and older) |
|
$500 |
| IRA Deduction Phase-out for
Special Contributions |
|
Single |
|
$34,000 - $44,000 |
|
Married Filing Jointly |
|
$54,000 - $64,000 |
| IRA Deduction Phase-out for
Spousal Contributions |
| Married Filing Jointly |
$150,000 -
$160,000 |
| Roth
IRA
Contribution |
|
Single |
$95,000 -
$110,000 |
|
Married Filing Jointly |
$150,000 -
$160,000 |
|
Married Filing Separately |
$0 - $10,000 |
| Roth
IRA
Conversion Phase-out |
| Single |
$100,000 |
| Married Filing Jointly |
$100,000 |
| Married Filing Separately |
Ineligible |
|
|
|
|
Estate and
Gift Tax
Phase-out and Repeal of Estate and Generation-Skipping
Transfer Tax. |
|
Calendar Year |
Estate/GST tax
Death time transfer Exemption |
Highest estate and gift tax
rates |
| 2002 |
$1million/$1.1 million |
50% |
| 2003 |
$1million/$1.1 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 |
Not applicable (taxes
repealed) |
Top individual rate (gift
tax only) |
|
Gift tax: Annual Gift Limitation of
$11,000 for 2002 and later years. Lifetime Exemption of $1 million
after December 31, 2001. |
|
|
|
|
Education-Related
Tax Benefits
2002
Deduction for
Qualified Higher Education Costs |
| Calendar Year |
Single
AGI |
MFJ
AGI |
Deduction |
| 2002-2003 |
$65,000* |
$130,000* |
$3,000 |
| 2004-2005 |
$65,000 |
$130,000 |
$4,000 |
| 2004-2005 |
$80,000* |
$160,000* |
$2,000 |
| * Taxpayers
with AGI above these thresholds are not entitled to a deduction. |
|
Coverdell Education Savings Accounts |
|
Annual Contribution Limit |
$2,000 |
|
Income Eligibility
|
| Single |
$95,000 -
$110,000 |
|
Married Filing Jointly |
$190,000
As a couple's income increases from $190,000 to $220,000, their
contribution limit phases out |
|
Qualified Tuition Programs
Deduct $3,000 in higher education expenses .
Beginning income of Phase-Out range: |
|
Single |
$50,000 |
|
Married Filing Jointly |
$100,000 |
|
Student Loan Deductions
Deduct interest for the life of the loan.
Beginning incoming Phase-Out range: |
|
Single |
$50,000 |
|
Married Filing Jointly |
$100,000 |
|
|
|
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Post-9/11
Federal Depreciation
California has not adopted these provisions.
Additional 30 percent
immediate write-off for new assets:
-
Acquired after September 10, 2001 and
before September 11, 2004
-
Placed in serviced between September
11,2001 and December 31, 2004
-
Recovery period must be 20 years or
less
Additional depreciation for vehicles:
-
Vehicles acquired within time period
mentioned above can claim an additional $4,600 (total $7,660) of
depreciation in 2002 (to be adjusted for business use percentage.
-
Does not apply to used vehicles.
|
|
|
|
|
|
This information on this page is
provided to assist businesses and individuals. It is accurate to
the best of our knowledge. |
|
However, nothing on this page
should be used to answer any particular financial question or be considered
professional advice. |
|
Please
contact us
for specific advice. |
|
