The bill expands the 10% rate bracket for Single, Married Filing Separately, and Married Filing Jointly returns to reflect the 2008 amounts. However, the change only applies to 2003 and 2004. After 2004, present law applies.
| |
Current 10% Bracket: |
Adjusted 10% Bracket: |
| Single or Married Filing Separately |
$0 - $6,000 |
$0 - $7,000 |
| Married Filing Jointly |
$0 - $12,000 |
$0 - $14,000 |
Who Benefits?
All who pay taxes in the 15% rate bracket or higher will benefit from this provision, except for Head of Household. The maximum benefit under this provision is $50 ($1,000 x 5%) for Single and Married Filing Separately filers; $100 ($2,000 x 5%) for Joint filers.
Our Advice
For most taxpayers, there's no need to do anything at all to make the most of this tax law change. If you receive a paycheck, your employer is require to implement the updated tax rates by July 1, 2003.
If you are self-employed or make estimated tax payments throughout the year, you'll want to reexamine your estimated tax payments to be sure you're still paying enough, but not overpaying based on the new rates.
Return to Tax Law Changes
