Tax Brackets for 2005

Physician's Money Digest, October31 2004, Volume 11, Issue 20

Wall Street

Journal

Although the IRS won't officiallyannounce the income tax brackets for2005 until later this year, the tax experts have already donesome projections. According to these predictions,if you file a joint return, yourtaxable income will have to top$326,450 next year before you land inthe highest tax bracket of 35%, up from$319,100 this year. To get into the 33%bracket, your taxable income must top$182,800, up from $178,650. The 28%level starts at $119,950 for joint filers in2005. Single filers have the same incomelevel for the top tax brackets, but will hitthe 33% bracket at $150,150, up from$146,750 in 2004. Inflation will alsokick the standard deduction up a notch,from $9700 to $10,000 for joint returns,and from $4850 to $5000 on singlereturns. The annual gift tax exemptionwill remain at $11,000.