Kiplinger has the estimated tax savings you’re likely to see for the 2007 tax year (when you file in April 2008). Here are the estimated tax brackets, take a look to see where you fall:
These are just the estimated numbers. The IRS will release the official numbers in December. Here are more estimations from Kiplinger:
- The personal exemption — which you claim for yourself and each dependent — will rise to $3,400, up $100 from the 2006 level.
- The standard deduction — which is used by nearly two-thirds of all taxpayers — will increase for each filing status. Singles will enjoy a $200 hike, to $5,350 from this year’s $5,150. Married couples filing jointly will see their standard deduction rise to $10,700, $400 more than they will claim on 2006 returns. The standard deduction for heads of household who do not itemize deductions will increase $300, to $7,850 on 2007 returns.
- The tax brackets will become broader; meaning more of your income will be taxed at lower rates. The 10% bracket on 2007 joint returns, Kiplinger estimates, will cover the first $15,650 of taxable income. That’s $550 more than in 2006. Taxing that amount at 10% rather than 15% will save couples $27.50. The higher your income, the more you save as more dollars fall into lower brackets. As the top of the 15% bracket rises, for example, some income that used to be taxed at 25% will be hit by the 15% rate.
But wait, there’s more! Check the article on Kiplinger for information on changes to the itemized deduction and personal exeption phase-out amounts as well as Social Security limits.
Updated June 17, 2014 and originally published September 20, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.