Riverwoods, Ill. (Sept. 19, 2002) -- Indexing for inflation will bring some tax relief next year to those currently in the 27-percent and higher tax brackets, according to CCH Inc., which has released estimated income ranges for each 2003 tax bracket.
CCH's projections are unofficial, and are based on the inflation data released September 18, 2002 by the U.S. Department of Labor. The Internal Revenue Service usually releases official numbers in December each year.
According to CCH, a married couple filing jointly with total taxable income of $100,000 could pay $90 less in income taxes in 2003, while a single filer with taxable income of $50,000 will pay $54 less next year.
George Jones, senior federal tax analyst for CCH, observed that some items in the Code are not indexed for inflation, notably the new 10-percent bracket. "This new lowest bracket applies to the first $6,000 of income for singles, $10,000 for heads of households and $12,000 for joint filers, regardless of inflation, from now until 2007. Then it will be raised by $1,000 for singles and $2,000 for joint filers, but it won't be indexed until 2009, Jones said.
-- Electronic Accountant Newswire staff
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