Do-It-Yourself 1040 Tax Form

Here’s a chance to see just how bad things will be in April.

1997 Gross income		$
Less contributions to retirement plan $ (IRA, SEP, pension, profit-sharing)		$
Adjusted Gross Income		$
Deductions and Exemptions
State and local income, property taxes	$
Mortgage interest	$
Contributions	$
Business expenses	$
Exemptions ($2,650 per person)	$
Total deductions and exemptions		$
Taxable income		$
Income tax
(See rates below)

 

Married Individuals Filing Joint Return

Taxable Income	Tax on Lower Amount	Rate on Excess	Over
$0 ­ $41,200	$0	15%	0
$41,200 ­99,600	$6,180.00	28%	$41,200
$99,600 ­151,750	$22,532.00	31%	$99,600
$151,750 ­271,050	$38,698.50	36%	$151,750
$271,050 ­	$81,646.50	39.6%	$271,050

 

Single Individuals Filing Joint Return

Taxable Income	Tax on Lower Amount	Rate on Excess	Over
$0 ­ $24,650	$0	15%	0
$24,650 ­59,750	$3,967.50	28%	$24,650
$59,750 ­124,650	$13,525.50	31%	$59,750
$124,650 ­271,050	$33,644.50	36%	$124,650
$271,050 ­	$86,348.50	39.6%	$271,050

Have you been wondering if you are on track for your ’97 taxes? Grab your calculator and spend fifteen minutes right now calculating your bill (or refund!) It’s worth having a general idea of where you are and what (if anything) can be done to help. Hopefully you are on a computerized system so it’s relatively easy to locate the following information.

You will need:

• Your 1997 gross income
• Retirement contributions
• State and local income and property taxes paid
• An estimate of your mortgage interest paid
• Contributions
• Business expenses
• Exemptions
• A calculator

Example:

Your 1997 taxable income is $135,000. If you are married, filing jointly, the tax you owe on the lower amount ($151,750 tax bracket) is $22,532 on the first $99,600 of your combined income. The tax on the excess ($135,000 – 99,600) is $35,400 x 31% = $10,974. Your total tax owed is approximately ($22,532 + 10,974) = $35,506.

This do-it-yourself tax form was developed by Stanley Greenfield, RHU, of Jacksonville Beach, FL.