| OCR Text |
ES TheSalt Lake Tribune BUSINESS Sunday, January 24, 1999 _ SAVINGS GAME and local incometaxes. to more, then of course you should claim the higher figure. Let’s use the example of a married couple with two dependent children. Husband and wife work for a company and each makes $40,000 a year. They expect to receive $3,000 in interest and $3,000 in dividends but no capital gains. Thus their total income HUMBERTO CRUZ Not Too Early To Estimate Taxes for 1999 Every year for the past three T’ve done a column on doing your taxes one year ahead. This year,I thoughtI'd giveit a rest and told you I would doit only if you asked. You did, via letters, phone calls and e-mail! For those new to the subject, I hope this exercise will become a yearly habit. For those already familiar with the topic, today’s columnwill provide new numbers for personal exemptions, stan- dard deductions and tax bracket points for 1999. Again,let’s make clear what we're doing: figuring how much we will owe in federal income taxes on our 1999 income. Therefore, all the numbers I'm going to give you arefor the return due on April 15, 2000. Why dothis? Simply because there is no way to properly plan how much wewill spend, save andinvest in 1999 if we don’t know how much of what we make we get to keep. Caution: If your tax situation is very complicated you maywish to get professional advice. Let’s start with income from work. You probably know your annualsalary, but that’s before taxes are taken out. And the tax- es withheld from your paycheck may or maynot bethecorrect amount to cover your tax obligation for the year. You can estimate other sources of income, such as dividends and interest. Others such as capital gains are much harderto predict but go ahead and make an educated guess. Add it all up and you have your anticipated income for 1999. But notall ofit is taxed. For the 1999 tax year, the Internal RevenueServicewilllet us reduce our taxable income by $2,750 for each personal exemption, up from $2,700 in 1998. As usual, you can claim an exemption for yourself and for each dependent youclaim. Nextlet's go to deductions. The words, they would apply to the federalincometax return due on would be $86,000. If they file as married filing jointly, they can claim four exemptions (husband, wife and two Marriedfiling jointly (and surviving spouse) 1999 tax brackets: children) for a total of $11,000. They can deductat least the standard $7,200. Therefore, thefirst $18,200 of incomeis not taxed at all. That leaves $67,800 to be taxed. Only after subtracting exemp- Bracket Taxable income 15 percent $0-$43,050 28 percent $43,051-$104,050 31 percent $104,051-$158,550 36 percent $158,551-$283,150 39.6 percent Amounts over tions and deductions do you apply tax brackets. For 1999, the 15 percent tax bracket for married couplesfiling jointly applies to incomeup to $43,050. The 28 percenttax bracket goes from $43,051 to $104,050. Therefore, the tax on the remaining $67,800 of incomewill $283,150 Marriedfiling separately Bracket Taxable income 15 percent $0-$21,525 28 percent $21,526-$52,025 31 percent $52,026-$79,275 36 percent $79,276-$141,575 If Ellen Phillips’ parents chided her using the aforementioned line, then Shocked, Appalled and Dismayed must be sweet revengefor Phillips, a Virginia resident who makesa living asa self-styled expert in the art of complaintletters. The 333-page Vintage Books paperback laysa battle plan for consumerswho want to extract their pint of blood — in the form of refunds, replacement products and apologies — from the companies that haveslighted them. Some of Phillips’ tips for effective complaining include: @ First approach the business by telephoneor in person, especially when dealing with small-business owners. Why put up a fence where none may be needed? Calm down. You all have heard the aphorism about the bees and the honey and vinegar. Don't threaten the business. are includedin the book for severalindustries with, how shall wesay, less-than-pristine images among consumers. Predictably, two versionsof letters are included for HMOs, the most belovedof targets. While Phillips spends her days trying to extract remorse from companies, she begins the book with her own apology: “As an English teacher with a master’s degree in the subject, I apologize to those language purists who are ‘shocked, appalled and dismayed’ at my unorthodox departure from proper grammar and usage.” 39.6 percent Amounts over Bracket Taxable income $283,150 Standard deduction amounts Marriedfiling jointly and surviving spouse: $7,200. Married filing separately: $3,600. Singlefilers: $4,300. Personal exemption amounts (all filers): $2,750. Sources: CCH,Inc., Internal RevenueService. another $6,120 taken outof their paychecks. And that would leave them with $66,492.50 of real income, Humberto Cruz lives in Coral Springs, Fla. Write him c/o only about 77 percent of the $86,000 they thought they made. Tribune Media Services, 435 N. Michigan Ave., Suite 1400, Chi- Youcan also factor in possible contributions to IRAs and 401(k) ans. cago, IL 60611. Send e-mail messages to: HCruz5040@SunSentinel.com. You mayhaveto consider state (0000000060068 350 Mhz. Intel® Pentium®ll! Processor whenit’s a matter of life and limb. Lately, we'veseenthat trouble can blow in just as easy as the wind changesdirections. Whichis why you needthe peace of mindthat comes withlife insurance and property-casualty insurancefrom FarmBureau. And,if disaster shouldstrike, you may rest assured we'll bethere for you with fast, fair claims service. Just say when ... whenever you're ready.” 6.4 Gig Nard Drive 4 Jr. Tower Case 164 Megs Sdram | 8 MegIntel™ AGP Video Card | DVD Ill Hitachi CDRom pentium] 1 Stereo Speakers 116 Bit 3d Wave Table Sound Card ' Windows™ Keyboard and Mouse '1 Windows™98(preloaded with CD) " Creative Labs™ ModemBlaster® Y."0000 BD. FARM BUREAU FINANCIAL SERVICES Insurance + investments wow fbts.com Securities products and services offered through: EquiTTrust Marke 5400 University Avenue, West Des Moines, 1A 50266, 1-800-247-4 ©FBL 1999 17”.27 Vista Point™ Color Monitor Lexmark™ 1100 Color Printer lnnrovetion COMPUTERS Come See Why We're Better! NEW MEDICATIONS STUDIED Uda Model aoh Taking part in an investigational research study is an excellent opportunity to learn more about a chroniciliness and howtotreatit. tT EAM iMhz. Refresh Save up to $125.00* SORE THROAT afler $50 Mfr Rebate Salt Lak -& Glass Act ae8844 iverdale Rd. ree Oar TAX En 199-3363 Fi (801) 226-2665 (801) 399-3335 Provo/Orem 373-8726 32 1072 A Caregiver’s Challenge . Volunteers, ages 15 andolder, suffering with sore throatare invited to cail. Qualified research participants will receive up to $160fortaking parin this research study with an investigational medicine. There is no charge for screening to qualify. © opin Joyce Simard, a nationally recognized expert on A zheimer's disease, and learn about howthedisease may affect the person with it, as well as their family. Hosted by Chancellor Gardens, Ms. Simard will discuss the diseaseprocess, share practical tips on caregiving, and answer your questions. If you care for someonewith Alzheimer’s or a related memory disorder, do not miss this important seminar. Qualified volunteers, ages 5 and older, using inhaled medication to control their asthma symptomswill receive FREElung functiontests, lab work, physical exams, study drug, as well asfinancial compensation BRONCHITIS/COUGH Qualified volunteers with bronchitis, participating in an investigational antibiotic study, may receive up to $100 fortheir time. Volunteers, 12 years and older who have bronchitis and with current symptoms (cough and sputum) areinvited to call CHILDREN WITH ASTHMA WEDNESDAY JANUARY27, 1999 6:00 PM ‘ Heritage Senior Center 562 South 1000 East Clearfield, Utah CHANCELLOR GARDENS Information Center 2146 North Main #522 + Layton, Utah 84041 invited to call Compensation is available. You may qualify to participate in a clinical researchtrial testing the effectiveness ofan investigational medication that potentially may preventjoint damage caused by rheumatoid arthritis, To qualify you mustbe age 21 orolder, diagnosed with rheumatoid arthritis for less than 10 years, and currently taking methotrexate. Qualified participants will receive up to $560 plus physical exams, laboratory tesis, and trial-related medication OSTEOARTHRITIS OF THE KNEE Volunteers are needed to participate in an investigational research drug study. You may qualify if you are over 45 years of age and have moderate work, physical examinations, and up to $330for their time. CALL 532-4526 7:00-4:00 p.m. Mondaythrough Friday for information regarding these investigational research studies INTERMOUNTAIN CLINICAL RESEARCH 1508. 1000 E., SLC,UT Chancellor Gardens 1s operated by CareMatnx Corporati whosesemorresidences are distinguished by the highest standards of bospitality, personal care service, av. mbuanice Volunteers, ages 3-5, suffering from symptoms of congestion and runny nose are invited to participate in an investigational research drug study. Participants will receive compensation. knee pain while walking due to osteoarthritis of the knee. Participantswill receive study-related benefits including free x-rays, blood Children, ages 4 to 11, using daily medicationsto control their asthma symptomsare RSVP bycalling Chancellor Gardens at 801-779-0798, CHILDREN WITH RUNNY NOSE & CONGESTION DO YOU HAVE RHEUMATOID ARTHRITIS? ASTHMA LEARNING TO LIVE WITH ALZHEIMER’S: 2 @ Get your facts right. Document, document, document, then prove it @“Cc:” the letter to every involved (and potential ly involved) party you can think of: it'll frighten or embarrass the company. Bonus points for “ce."'s to government agencieswith sinister reputations, such as the Federal BureauofInvestigation. If you get your way, write a thank-you letter it's onlyfair. For those who lack the timeor creativity to write their own letter, generic fill-in-the-blank missives 15 percent $0-$25,750 28 percent $25,751-$62,450 31 percent $62,451-$130,250 36 percent $130,251-$283,150 39.6 percent Amounts over al payroll taxes for Social Security — 6.2 percentof the first $72,600 in wages for employees, or 12.4 percentfor the self-employed — and for Medicare — 1.45 percentof all wages for employees, or 2.9 percent for the self-employed. For the couple in our example, that would add up Glaustou Act wl waive Deduct wp$125.00 Free Male Fence ServiceCall& Free Sate SuetInspection for Detal JoYCE SIMARD, MSW Vice President of Alzheimer's Programming for CareMatrix KNIGHT-RIDDER NEWS SERVICE “Complain, complain, complain, that's all you ever do? You'll never amount to anything.” Single filers of the other $24,750. This couple with the $86,000 income keeps only $72,612.50 after paying federal incometaxes. You should also subtract feder- standard deduction for a married e Book Teachesthe Art of Conipeatnin for Consumers $141,575 be $13,387.50 — 15 percent of the first $43,050 and 28 percent $7,200;for a single, $4,300. If ndshields! | the 1999 tax year — in other April 15, 2000, not the one to be filed this year. couplefiling jointly will be your itemized deductions add up You getthe idea. Any budget and savings plan needs to be predicated on the actual amount you keep,or it won't work. Thefollowing figures are for + 6065 S. Fashion Blvd. #255, Murray, UT |
