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Version 2.0 released Jan 3, 2000

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• Notes
• Known problems and errors
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Notes

The following changes have been made to update for tax changes from 1999 to 2000:

1. Tax rate table.  Updated the break-points for the 2000 tax tables, as follows:

How to read this table:  The break-point shows the level of taxable income (after deductions and exemptions) at which the next dollar is taxed at the rate shown at the top of the column.  For example, for the single taxpayer: For the first $26,250, 15% is due in taxes.  For taxable income between $26,250 and $63,550, 28% is due in taxes.  For taxable income between $63,500 and $132,600, 31% is due in taxes.  For taxable income between $132,600 and $288,350, 36% is due in taxes.  And for taxable income over $288,350, 39.6% of that income is due in taxes.

2. Standard deduction.  Updated the standard deduction to the 2000 standard deductions, as follows:

For a blind or age over-65 individual, add $850, for married filing joint, married filing separate, or surviving spouse.  Add $1,100 additional for single or head of household.

3. Exemption.  The year 2000 exemption amount is $2,800 per child.

4. Exemption phase-out.  The point at which the exemption begins to phase out for upper-income taxpayers is:

5. Itemized deductions phase-out.  The point at which itemized deductions (mortgage interest, state taxes, etc.) begin to phase out for upper income taxpayers is:

6. Lump-sum pension distribution.  Starting in 2000, the 5-year averaging method for calculating tax on lump-sum pension distributions is no longer available.

7. Social security tax.  The amount of wages and salary taxable for both social security and medicare is $76,200 per year.  The employees' share of social security tax is 7.65% of wages and salary up to $76,200 per year, plus 1.45% of wages beyond $76,200 per year.

8. Health insurance deduction.  The amount of health insurance deductible on the individual tax return from a sole proprietorship, partnership, or S- Corporation's expenditures remains at 60% for 2000.  It is scheduled to go to 70% in 2002 and 100% in 2003.

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Known Problems and Errors  

There are no known problems or errors with this edition.

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Problems and Errors Fixed  

There are no known problems or errors with this edition.

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