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.
