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For termination of amendment by section 105 of Pub. L. 108–311, see Effective and Termination Dates of 2004 Amendments note below. For termination of amendment by sections 107 and 303 of Pub. L. 108–27, see Effective and Termination Dates of 2003 Amendment note below. For termination of amendment by section 901 of Pub. L. 107–16, see Effective and Termination Dates of 2001 Amendment note below.
Revenue Procedure 2005–70 provided: Section 1. Purpose This revenue procedure sets forth inflation adjusted items for 2006. Section 2. Changes .01 The amount of tax imposed by § 4161(b)(2)(A) on the first sale by the manufacturer, producer, or importer of any shaft of a type used in the manufacture of certain arrows is adjusted for inflation. (Section 3.29). Section 3. 2006 Adjusted Items .01 Tax Rate Tables. For taxable years beginning in 2006, the tax rate tables under § 1 are as follows:
.02 Unearned Income of Minor Children Taxed as if Parent’s Income (the “Kiddie Tax”). For taxable years beginning in 2006, the amount in § 1(g)(4)(A)(ii)(I), which is used to reduce the net unearned income reported on the child’s return that is subject to the “kiddie tax,” is $850. (This amount is the same as the $850 standard deduction amount provided in section 3.10(2) of this revenue procedure.) The same $850 amount is used for purposes of § 1(g)(7) (that is, in determining whether a parent may elect to include a child’s gross income in the parent’s gross income and for calculating the “kiddie tax”). For example, one of the requirements for the parental election is that a child’s gross income is more than the amount referenced in § 1(g)(4)(A)(ii)(I) but less than 10 times such amount; thus, a child’s gross income for 2006 must be more than $850 but less than $8,500 to satisfy that requirement.
.03 Adoption Credit. For taxable years beginning in 2006, under § 23(a)(3) the maximum credit allowed for an adoption of a child with special needs is $10,960. For taxable years beginning in 2006, under § 23(b)(1) the maximum credit allowed with regard to other adoptions is the amount of qualified adoption expenses up to $10,960. The available adoption credit begins to phase out under § 23(b)(2)(A) for taxpayers with modified adjusted gross income in excess of $164,410 and is completely phased out for taxpayers with modified adjusted gross income of $204,410. (See section
3.14 of this revenue procedure for the adjusted items relating to adoption assistance programs.)
.04 Child Tax Credit. For taxable years beginning in 2006, the value used in § 24(d)(1)(B)(i) in determining the amount of credit under § 24 that may be refundable is $11,300.
.05 Hope and Lifetime Learning Credits.
(1) For taxable years beginning in 2006, 100 percent of qualified tuition and related expenses not in excess of $1,100 and 50 percent of such expenses in excess of $1,100 are taken into account in determining the amount of the Hope Scholarship Credit under § 25A(b)(1).
(2) For taxable years beginning in 2006, a taxpayer’s modified adjusted gross income in excess of $45,000 ($90,000 for a joint return) is taken into account in determining the reduction under § 25A(d)(2)(A)(ii) in the amount of the Hope Scholarship and Lifetime Learning Credits otherwise allowable under § 25A(a).
.06 Earned Income Credit.
(1) In general. For taxable years beginning in 2006, the following amounts are used to determine the earned income credit under § 32(b). The “earned income amount” is the amount of earned income at or above which the maximum amount of the earned income credit is allowed. The “threshold phaseout amount” is the amount of adjusted gross income (or, if greater, earned income) above which the maximum amount of the credit begins to phase out. The “completed phaseout amount” is the amount of adjusted gross income (or if greater, earned income) at or above which no credit is allowed.
The instructions for the Form
1040 series provide tables showing the amount of the earned income credit for each type of taxpayer.
(2) Excessive investment income. For taxable years beginning in 2006, the earned income tax credit is denied under § 32(i) if the aggregate amount of certain investment income exceeds $2,800.
.07 Low-Income Housing Credit. For calendar year 2006, the amounts used under § 42(h)(3)(C)(ii) to calculate the State housing credit ceiling for the low-income housing credit is the greater of (i) $1.90 multiplied by the State population, or (ii) $2,190,000.
.08 Alternative Minimum Tax Exemption for a Child Subject to the “Kiddie Tax.” For taxable years beginning in 2006, for a child to whom the § 1(g) “kiddie tax” applies, the exemption amount under §§ 55 and
59
(j) for purposes of the alternative minimum tax under § 55 may not exceed the sum of (i) such child’s earned income for the taxable year, plus (ii) $6,050.
.09 Transportation Mainline Pipeline Construction Industry Optional Expense Substantiation Rules for Payments to Employees under Accountable Plans. For calendar year 2006, an eligible employer may pay certain welders and heavy equipment mechanics an amount of up to $14 per hour for rig-related expenses that is deemed substantiated under an accountable plan when paid in accordance with Rev. Proc. 2002–41, 2002–1 C.B. 1098. If the employer provides fuel or otherwise reimburses fuel expenses, up to $8 per hour is deemed substantiated when paid under Rev. Proc. 2002–41.
.10 Standard Deduction.
(1) In general. For taxable years beginning in 2006, the standard deduction amounts under § 63(c)(2) are as follows:
(2) Dependent. For taxable years beginning in 2006, the standard deduction amount under § 63(c)(5) for an individual who may be claimed as a dependent by another taxpayer may not exceed the greater of (i) $850, or (ii) the sum of $300 and the individual’s earned income.
(3) Aged and blind. For taxable years beginning in 2006, the additional standard deduction amounts under § 63(f) for the aged and for the blind are $1,000 for each. These amounts are increased to $1,250 if the individual is also unmarried and not a surviving spouse.
.11 Overall Limitation on Itemized Deductions. For taxable years beginning in 2006, the “applicable amount” of adjusted gross income under § 68(b), above which the amount of otherwise allowable itemized deductions is reduced under § 68, is $150,500 (or $75,250 for a separate return filed by a married individual).
.12 Qualified Transportation Fringe. For taxable years beginning in 2006, the monthly limitation under § 132(f)(2)(A) (regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass) is $105. The monthly limitation under § 132(f)(2)(B) (regarding the fringe benefit exclusion amount for qualified parking) is $205.
.13 Income from United States Savings Bonds for Taxpayers Who Pay Qualified Higher Education Expenses. For taxable years beginning in 2006, the exclusion under § 135 (regarding income from United States savings bonds for taxpayers who pay qualified higher education expenses) begins to phase out for modified adjusted gross income above $94,700 for joint returns and $63,100 for other returns. This exclusion completely phases out for modified adjusted gross income of $124,700 or more for joint returns and $78,100 or more for other returns.
.14 Adoption Assistance Programs. For taxable years beginning in 2006, under § 137(a)(2) the maximum amount that can be excluded from an employee’s gross income in connection with the adoption by the employee of a child with special needs is $10,960. For taxable years beginning in 2006, under § 137(b)(1) the maximum amount that can be excluded from an employee’s gross income for the amounts paid or expenses incurred by the employer for qualified adoption expenses furnished pursuant to an adoption assistance program in connection with other adoptions by the employee is $10,960. The amount excludable from an employee’s gross income begins to phase out under § 137(b)(2)(A) for taxpayers with modified adjusted gross income in excess of $164,410 and is completely phased out for taxpayers with modified adjusted gross income of $204,410. (See section
3.03 of this revenue procedure for the adjusted items relating to the adoption credit.)
.15 Private Activity Bonds Volume Cap. For calendar year 2006, the amounts used under § 146(d)(1) to calculate the State ceiling for the volume cap for private activity bonds is the greater of (i) $80 multiplied by the State population, or (ii) $246,610,000.
.16 Safe Harbor Rules for Broker Commissions on Guaranteed Investment Contracts or Investments Purchased for a Yield Restricted Defeasance Escrow. For calendar year 2006, under § 1.148–5(e)(2)(iii)(B)(1), a broker’s commission or similar fee with respect to the acquisition of a guaranteed investment contract or investments purchased for a yield restricted defeasance escrow is reasonable to the extent that (i) the amount of the fee that the issuer treats as a qualified administrative cost does not exceed the lesser of (A) $32,000, or (B) 0.2 percent of the computational base (as defined in § 1.148–5(e)(2)(iii)(B)(2)) or, if more, $3,000; and (ii) the issuer does not treat more than $90,000 in brokers’ commissions or similar fees as qualified administrative costs with respect to all guaranteed investment contracts and investments for yield restricted defeasance escrows purchased with gross proceeds of the issue.
.17 Personal Exemption.
(1) Exemption amount. For taxable years beginning in 2006, the personal exemption amount under § 151(d) is $3,300.
(2) Phase out. For taxable years beginning in 2006, the personal exemption amount begins to phase out at, and is completely phased out after, the following adjusted gross income amounts:
.18 Election to Expense Certain Depreciable Assets. For taxable years beginning in 2006, under § 179(b)(1) the aggregate cost of any § 179 property a taxpayer may elect to treat as an expense shall not exceed $108,000. Under § 179(b)(2) the $108,000 limitation shall be reduced (but not below zero) by the amount by which the cost of § 179 property placed in service during the 2006 taxable year exceeds $430,000.
.19 Eligible Long-Term Care Premiums. For taxable years beginning in 2006, the limitations under § 213(d)(10) (regarding eligible long-term care premiums includible in the term “medical care”) are as follows:
.20 Medical Savings Accounts.
(1) Self-only coverage. For taxable years beginning in 2006, the term “high deductible health plan” as defined in § 220(c)(2)(A) means, for self-only coverage, a health plan that has an annual deductible that is not less than $1,800 and not more than $2,700, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits does not exceed $3,650.
(2) Family coverage. For taxable years beginning in 2006, the term “high deductible health plan” means, for family coverage, a health plan that has an annual deductible that is not less than $3,650 and not more than $5,450, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits does not exceed $6,650.
.21 Interest on Education Loans. For taxable years beginning in 2006, the $2,500 maximum deduction for interest paid on qualified education loans under § 221 is reduced under § 221(b)(2)(B) when modified adjusted gross income exceeds $50,000 ($105,000 for joint returns), and is completely eliminated when modified adjusted gross income is $65,000 ($135,000 for joint returns).
.22 Health Savings Accounts.
(1) Monthly contribution limitation. For calendar year 2006, the monthly limitation on deductions under § 223(b)(2)(A) for an individual with self-only coverage under a high deductible plan as of the first day of such month is 1/12 of the lesser of (i) the annual deductible, or (ii) $2,700. For calendar year 2006, the monthly limitation on deductions under § 223(b)(2)(B) for an individual with family coverage under a high deductible plan as of the first day of such month is 1/12 of the lesser of (i) the annual deductible, or (ii) $5,450.
(2) High deductible health plan. For calendar year 2006, a high deductible health plan is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,050 for self-only coverage or $2,100 for family coverage, and the annual out-of pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed, $5,250 for self-only coverage or $10,500 for family coverage.
.23 Treatment of Dues Paid to Agricultural or Horticultural Organizations. For taxable years beginning in 2006, the limitation under § 512(d)(1) (regarding the exemption of annual dues required to be paid by a member to an agricultural or horticultural organization) is $131.
.24 Insubstantial Benefit Limitations for Contributions Associated with Charitable Fund-Raising Campaigns.
(1) Low cost article. For taxable years beginning in 2006, the unrelated business income of certain exempt organizations under § 513(h)(2) does not include a “low cost article” of $8.60 or less.
(2) Other insubstantial benefits. For taxable years beginning in 2006, the $5, $25, and $50 guidelines in section 3 of Rev. Proc. 90–12, 1990–1 C.B. 471 (as amplified and modified), for disregarding the value of insubstantial benefits received by a donor in return for a fully deductible charitable contribution under § 170, are $8.60, $43, and $86, respectively.
.25 Funeral Trusts. For a contract entered into during calendar year 2006 for a “qualified funeral trust,” as defined in § 685, the trust may not accept aggregate contributions by or for the benefit of an individual in excess of $8,500.
.26 Expatriation to Avoid Tax. For calendar year 2006, an individual with “average annual net income tax” of more than $131,000 for the 5 taxable years ending before the date of the loss of United States citizenship under § 877(a)(2)(A) is subject to tax under § 877(b).
.27 Valuation of Qualified Real Property in Decedent’s Gross Estate. For an estate of a decedent dying in calendar year 2006, if the executor elects to use the special use valuation method under § 2032A for qualified real property, the aggregate decrease in the value of qualified real property resulting from electing to use § 2032A that is taken into account for purposes of the estate tax may not exceed $900,000.
.28 Annual Exclusion for Gifts.
(1) For calendar year 2006, the first $12,000 of gifts to any person (other than gifts of future interests in property) are not included in the total amount of taxable gifts under § 2503 made during that year.
(2) For calendar year 2006, the first $120,000 of gifts to a spouse who is not a citizen of the United States (other than gifts of future interests in property) are not included in the total amount of taxable gifts under §§ 2503 and
2523
(i)(2) made during that year.
.29 Tax on Arrow Shafts. For calendar year 2006, the tax imposed under § 4161(b)(2)(A) on the first sale by the manufacturer, producer, or importer of any shaft of a type used in the manufacture of certain arrows is $0.40 per shaft.
.30 Passenger Air Transportation Excise Tax. For calendar year 2006, the tax under § 4261(b) on the amount paid for each domestic segment of taxable transportation by air is $3.30. For calendar year 2006, the tax under § 4261(c) on any amount paid (whether within or without the United States) for any transportation of any person by air, if such transportation begins or ends in the United States, generally is $14.50. However, for a domestic segment beginning or ending in Alaska or Hawaii as described in § 4261(c)(3), the tax only applies to departures and is at the rate of $7.30.
.31 Reporting Exception for Certain Exempt Organizations with Nondeductible Lobbying Expenditures. For taxable years beginning in 2006, the annual per person, family, or entity dues limitation to qualify for the reporting exception under § 6033(e)(3) (and section
5.05 of Rev. Proc. 98–19, 1998–1 C.B. 547), regarding certain exempt organizations with nondeductible lobbying expenditures, is $91 or less.
.32 Notice of Large Gifts Received from Foreign Persons. For taxable years beginning in 2006, recipients of gifts from certain foreign persons may be required to report these gifts under § 6039F if the aggregate value of gifts received in a taxable year exceeds $12,760.
.33 Persons Against Which a Federal Tax Lien Is Not Valid. For calendar year 2006, a federal tax lien is not valid against (i) certain purchasers under § 6323(b)(4) who purchased personal property in a casual sale for less than $1,240, or (ii) a mechanic’s lienor under § 6323(b)(7) that repaired or improved certain residential property if the contract price with the owner is not more than $6,210.
.34 Property Exempt from Levy. For calendar year 2006, the value of property exempt from levy under § 6334(a)(2) (fuel, provisions, furniture, and other household personal effects, as well as arms for personal use, livestock, and poultry) may not exceed $7,430. The value of property exempt from levy under § 6334(a)(3) (books and tools necessary for the trade, business, or profession of the taxpayer) may not exceed $3,710.
.35 Interest on a Certain Portion of the Estate Tax Payable in Installments. For an estate of a decedent dying in calendar year 2006, the dollar amount used to determine the “2-percent portion” (for purposes of calculating interest under § 6601(j)) of the estate tax extended as provided in § 6166 is $1,200,000.
.36 Attorney Fee Awards. For fees incurred in calendar year 2006, the attorney fee award limitation under § 7430(c)(1)(B)(iii) is $160 per hour.
.37 Periodic Payments Received under Qualified Long-Term Care Insurance Contracts or under Certain Life Insurance Contracts. For calendar year 2006, the stated dollar amount of the per diem limitation under § 7702B(d)(4) (regarding periodic payments received under a qualified long-term care insurance contract or periodic payments received under a life insurance contract that are treated as paid by reason of the death of a chronically ill individual) is $250.
Section
4. Effective Date
.01 General Rule. Except as provided in section
4.02, this revenue procedure applies to taxable years beginning in 2006.
.02 Calendar Year Rule. This revenue procedure applies to transactions or events occurring in calendar year 2006 for purposes of sections
3.07 (low-income housing credit), 3.09 (pipeline construction industry optional expense substantiation rules), 3.15 (private activity bond volume cap), 3.16 (safe harbor rules for broker commissions on guaranteed investment contracts or investments purchased for a yield restricted defeasance escrow), 3.22 (health savings accounts), 3.25 (funeral trusts), 3.26 (expatriation to avoid tax), 3.27 (valuation of qualified real property in decedent’s gross estate), 3.28 (annual exclusion for gifts), 3.29 (tax on arrow shafts), 3.30 (passenger air transportation excise tax), 3.33 (persons against which a federal tax lien is not valid), 3.34 (property exempt from levy), 3.35 (interest on a certain portion of the estate tax payable in installments), 3.36 (attorney fee awards), and 3.37 (periodic payments received under qualified long-term care insurance contracts or under certain life insurance contracts).
Section
5. Drafting Information
[Omitted–related to author of this revenue procedure.]
Inflation adjusted items for certain prior tax years were contained in the following: Revenue Procedure 2004–71 provided for inflation adjusted items for tax years beginning in 2005. Revenue Procedure 2003–85 provided inflation adjusted items for tax years beginning in 2004. Revenue Procedure 2002–70 provided inflation adjusted items for tax years beginning in 2003. Revenue Procedure 2001–59 provided inflation adjusted items for tax years beginning in 2002. Revenue Procedure 2001–13 provided inflation adjusted items for tax years beginning in 2001. Revenue Procedure 99–42 provided inflation adjusted items for tax years beginning in 2000. Revenue Procedure 98–61 provided inflation adjusted items for tax years beginning in 1999. Revenue Procedure 97–57 provided inflation adjusted items for tax years beginning in 1998. Revenue Procedure 96–59 provided inflation adjusted items for tax years beginning in 1997. Revenue Procedure 95–53 provided inflation adjusted items for tax years beginning in 1996. Revenue Procedure 94–72 provided inflation adjusted items for tax years beginning in 1995. Revenue Procedure 93–49 provided inflation adjusted items for tax years beginning in 1994. Revenue Procedure 92–102 provided inflation adjusted items for tax years beginning in 1993. Revenue Procedure 91–65 provided inflation adjusted items for tax years beginning in 1992. Revenue Procedure 90–64 provided inflation adjusted items for tax years beginning in 1991. Revenue Procedure 90–7 provided inflation adjusted items for tax years beginning in 1990. Revenue Procedure 88–56 provided inflation adjusted items for tax years beginning in 1989. Revenue Procedure 85–55 provided income tax cost-of-living adjustment (indexing) factor with respect to taxable years beginning in 1986. Revenue Procedure 84–79 provided income tax cost-of-living adjustment (indexing) factor with respect to taxable years beginning in 1985.
See Effective and Termination Dates of 2003 Amendment note below.
TITLE 26 > Subtitle A > CHAPTER 1 > Subchapter A > PART I > § 1
NOTES:
Source
(Aug. 16, 1954, ch. 736, 68A Stat. 5; Pub. L. 88–272, title I, § 111, Feb. 26, 1964, 78 Stat. 19; Pub. L. 89–809, title I, § 103(a)(2), Nov. 13, 1966, 80 Stat. 1550; Pub. L. 91–172, title VIII, § 803(a), Dec. 30, 1969, 83 Stat. 678; Pub. L. 95–30, title I, § 101(a), May 23, 1977, 91 Stat. 127; Pub. L. 95–600, title I, § 101(a), Nov. 6, 1978, 92 Stat. 2767; Pub. L. 97–34, title I, §§ 101(a),
104
(a), Aug. 13, 1981, 95 Stat. 176, 188; Pub. L. 97–448, title I, § 101(a)(3), Jan. 12, 1983, 96 Stat. 2366; Pub. L. 99–514, title I, § 101(a), title III, § 302(a), title XIV, § 1411(a), Oct. 22, 1986, 100 Stat. 2096, 2218, 2714; Pub. L. 100–647, title I, §§ 1001(a)(3),
1014
(e)(1)–(3), (6), (7), title VI, § 6006(a), Nov. 10, 1988, 102 Stat. 3349, 3561, 3562, 3686; Pub. L. 101–239, title VII, §§ 7811(j)(1),
7816
(b),
7831
(a), Dec. 19, 1989, 103 Stat. 2411, 2420, 2425; Pub. L. 101–508, title XI, §§ 11101(a)–(c), (d)(1)(A), (2), 11103(c), 11104(b), Nov. 5, 1990, 104 Stat. 1388–403 to 1388–406, 1388–408; Pub. L. 103–66, title XIII, §§ 13201(a), (b)(3)(A), (B),
13202
(a),
13206
(d)(2), Aug. 10, 1993, 107 Stat. 457, 459, 461, 467; Pub. L. 104–188, title I, § 1704(m)(1), (2), Aug. 20, 1996, 110 Stat. 1882, 1883; Pub. L. 105–34, title III, § 311(a), Aug. 5, 1997, 111 Stat. 831; Pub. L. 105–206, title V, § 5001(a)(1)–(4), title VI, §§ 6005(d)(1),
6007
(f)(1), July 22, 1998, 112 Stat. 787, 788, 800, 810; Pub. L. 105–277, div. J, title IV, § 4002(i)(1), (3), Oct. 21, 1998, 112 Stat. 2681–907, 2681–908; Pub. L. 106–554, § 1(a)(7) [title I, § 117(b)(1)], Dec. 21, 2000, 114 Stat. 2763, 2763A–604; Pub. L. 107–16, title I, § 101(a), (c)(1), (2), title III, §§ 301(c)(1),
302
(a), (b), June 7, 2001, 115 Stat. 41, 43, 54; Pub. L. 108–27, title I, §§ 102(a), (b)(1),
104
(a), (b),
105
(a), title III, §§ 301(a)(1), (2)(A), (b)(1),
302
(a), (e)(1), May 28, 2003, 117 Stat. 754, 755, 758, 760, 763; Pub. L. 108–311, title I, § 101(c), (d), title IV, §§ 402(a)(1)–(3), 408(a)(1), (2), Oct. 4, 2004, 118 Stat. 1167, 1168, 1184, 1190; Pub. L. 108–357, title IV, § 413(c)(1), Oct. 22, 2004, 118 Stat. 1506.)
Amendment of Section
For termination of amendment by section 105 of Pub. L. 108–311, see Effective and Termination Dates of 2004 Amendments note below. For termination of amendment by sections 107 and 303 of Pub. L. 108–27, see Effective and Termination Dates of 2003 Amendment note below. For termination of amendment by section 901 of Pub. L. 107–16, see Effective and Termination Dates of 2001 Amendment note below.
Tax Tables for Taxable Years Beginning in 2006
Revenue Procedure 2005–70 provided: Section 1. Purpose This revenue procedure sets forth inflation adjusted items for 2006. Section 2. Changes .01 The amount of tax imposed by § 4161(b)(2)(A) on the first sale by the manufacturer, producer, or importer of any shaft of a type used in the manufacture of certain arrows is adjusted for inflation. (Section 3.29). Section 3. 2006 Adjusted Items .01 Tax Rate Tables. For taxable years beginning in 2006, the tax rate tables under § 1 are as follows:
| If Taxable Income Is: | The Tax Is: |
|---|---|
| Not Over $15,100 | 10% of the taxable income |
| Over $15,100 but not over $61,300 | $1,510 plus 15% of the excess over $15,100 |
| Over $61,300 but not over $123,700 | $8,440 plus 25% of the excess over $61,300 |
| Over $123,700 but not over $188,450 | $24,040 plus 28% of the excess over $123,700 |
| Over $188,450 but not over $336,550 | $42,170 plus 33% of the excess over $188,450 |
| Over $336,550 | $91,043 plus 35% of the excess over $336,550 |
| If Taxable Income Is: | The Tax Is: |
|---|---|
| Not Over $10,750 | 10% of the taxable income |
| Over $10,750 but not over $41,050 | $1,075 plus 15% of the excess over $10,750 |
| Over $41,050 but not over $106,000 | $5,620 plus 25% of the excess over $41,050 |
| Over $106,000 but not over $171,650 | $21,857.50 plus 28% of the excess over $106,000 |
| Over $171,650 but not over $336,550 | $40,239.50 plus 33% of the excess over $171,650 |
| Over $336,550 | $94,656.50 plus 35% of the excess over $336,550 |
| If Taxable Income Is: | The Tax Is: |
|---|---|
| Not Over $7,550 | 10% of the taxable income |
| Over $7,550 but not over $30,650 | $755 plus 15% of the excess over $7,550 |
| Over $30,650 but not over $74,200 | $4,220 plus 25% of the excess over $30,650 |
| Over $74,200 but not over $154,800 | $15,107.50 plus 28% of the excess over $74,200 |
| Over $154,800 but not over $336,550 | $37,675.50 plus 33% of the excess over $154,800 |
| Over $336,550 | $97,653 plus 35% of the excess over $336,550 |
| If Taxable Income Is: | The Tax Is: |
|---|---|
| Not Over $7,550 | 10% of the taxable income |
| Over $7,550 but not over $30,650 | $755 plus 15% of the excess over $7,550 |
| Over $30,650 but not over $61,850 | $4,220 plus 25% of the excess over $30,650 |
| Over $61,850 but not over $94,225 | $12,020 plus 28% of the excess over $61,850 |
| Over $94,225 but not over $168,275 | $21,085 plus 33% of the excess over $94,225 |
| Over $168,275 | $45,521.50 plus 35% of the excess over $168,275 |
| If Taxable Income Is: | The Tax Is: |
|---|---|
| Not Over $2,050 | 15% of the taxable income |
| Over $2,050 but not over $4,850 | $307.50 plus 25% of the excess over $2,050 |
| Over $4,850 but not over $7,400 | $1,007.50 plus 28% of the excess over $4,850 |
| Over $7,400 but not over $10,050 | $1,721.50 plus 33% of the excess over $7,400 |
| Over $10,050 | $2,596 plus 35% of the excess over $10,050 |
| Item | Number of Qualifying Children | One | Two or More | None | |
|---|---|---|---|---|---|
| Earned Income Amount | $ 8,080 | $11,340 | $ 5,380 | ||
| Maximum Amount of Credit | $ 2,747 | $ 4,536 | $ 412 | ||
| Threshold Phaseout Amount (Single, Surviving Spouse, or Head of Household) | $14,810 | $14,810 | $ 6,740 | ||
| Completed Phaseout Amount (Single, Surviving Spouse, or Head of Household) | $32,001 | $36,348 | $12,120 | ||
| Threshold Phaseout Amount (Married Filing Jointly) | $16,810 | $16,810 | $ 8,740 | ||
| Completed Phaseout Amount (Married Filing Jointly) | $34,001 | $38,348 | $14,120 |
| Filing Status | Standard Deduction |
|---|---|
| Married Individuals Filing Joint Returns and Surviving Spouses (§ 1(a)) | $10,300 |
| Heads of Households (§ 1(b)) | $7,550 |
| Unmarried Individuals (other than Surviving Spouses and Heads of Households) (§ 1(c)) | $5,150 |
| Married Individuals Filing Separate Returns (§ 1(d)) | $5,150 |
| Filing Status | AGI—Beginning of Phaseout | AGI—Exemption Fully Phased Out |
|---|---|---|
| Married Individuals Filing Joint Returns and Surviving Spouses (§ 1(a)) | $225,750 | $348,250 |
| Heads of Households (§ 1(b)) | $188,150 | $310,650 |
| Unmarried Individuals (other than Surviving Spouses and Heads of Households) (§ 1(c)) | $150,500 | $273,000 |
| Married Individuals Filing Separate Returns (§ 1(d)) | $112,875 | $174,125 |
| Attained Age Before the Close of the Taxable Year | Limitation on Premiums |
|---|---|
| 40 or less | $ 280 |
| More than 40 but not more than 50 | $ 530 |
| More than 50 but not more than 60 | $1,060 |
| More than 60 but not more than 70 | $2,830 |
| More than 70 | $3,530 |
Tax Tables for Prior Tax Years
Inflation adjusted items for certain prior tax years were contained in the following: Revenue Procedure 2004–71 provided for inflation adjusted items for tax years beginning in 2005. Revenue Procedure 2003–85 provided inflation adjusted items for tax years beginning in 2004. Revenue Procedure 2002–70 provided inflation adjusted items for tax years beginning in 2003. Revenue Procedure 2001–59 provided inflation adjusted items for tax years beginning in 2002. Revenue Procedure 2001–13 provided inflation adjusted items for tax years beginning in 2001. Revenue Procedure 99–42 provided inflation adjusted items for tax years beginning in 2000. Revenue Procedure 98–61 provided inflation adjusted items for tax years beginning in 1999. Revenue Procedure 97–57 provided inflation adjusted items for tax years beginning in 1998. Revenue Procedure 96–59 provided inflation adjusted items for tax years beginning in 1997. Revenue Procedure 95–53 provided inflation adjusted items for tax years beginning in 1996. Revenue Procedure 94–72 provided inflation adjusted items for tax years beginning in 1995. Revenue Procedure 93–49 provided inflation adjusted items for tax years beginning in 1994. Revenue Procedure 92–102 provided inflation adjusted items for tax years beginning in 1993. Revenue Procedure 91–65 provided inflation adjusted items for tax years beginning in 1992. Revenue Procedure 90–64 provided inflation adjusted items for tax years beginning in 1991. Revenue Procedure 90–7 provided inflation adjusted items for tax years beginning in 1990. Revenue Procedure 88–56 provided inflation adjusted items for tax years beginning in 1989. Revenue Procedure 85–55 provided income tax cost-of-living adjustment (indexing) factor with respect to taxable years beginning in 1986. Revenue Procedure 84–79 provided income tax cost-of-living adjustment (indexing) factor with respect to taxable years beginning in 1985.
References in Text
The enactment of this clause, referred to in subsec. (h)(13)(A)(iii), means the date of enactment of Pub. L. 105–206, which was approved July 22, 1998.
Amendments
2004—Subsec. (f)(8). Pub. L. 108–311, §§ 101(c),
105, temporarily amended par. (8) generally, substituting provisions relating to elimination of marriage penalty in 15-percent bracket for provisions relating to phaseout of marriage penalty in 15-percent bracket. See Effective and Termination Dates of 2004 Amendments note below.
Subsec. (g)(7)(B)(ii)(II). Pub. L. 108–311, § 408(a)(1), substituted “10 percent” for “10 percent.”
Subsec. (h)(1)(D)(i). Pub. L. 108–311, § 402(a)(1), inserted “(determined without regard to paragraph (11))” after “net capital gain”.
Subsec. (h)(6)(A)(ii)(I). Pub. L. 108–311, § 408(a)(2)(A), substituted “(4)(B)” for “(5)(B)”.
Subsec. (h)(6)(A)(ii)(II). Pub. L. 108–311, § 408(a)(2)(B), substituted “(4)(A)” for “(5)(A)”.
Subsec. (h)(10)(F) to (H). Pub. L. 108–357, § 413(c)(1)(A), inserted “and” at end of subpar. (F), redesignated subpar. (H) as (G), and struck out former subpar. (G) which read as follows: “a foreign investment company which is described in section
1246
(b)(1) and for which an election is in effect under section
1247; and”.
Subsec. (h)(11)(B)(iii)(I). Pub. L. 108–311, § 402(a)(2), substituted “substituting in section
246
(c)” for “substituting in section
246
(c)(1)”, “121-day period” for “120-day period”, and “91-day period” for “90-day period”.
Subsec. (h)(11)(C)(iii). Pub. L. 108–357, § 413(c)(1)(B), struck out “a foreign personal holding company (as defined in section
552), a foreign investment company (as defined in section
1246
(b)), or” before “a passive foreign investment”.
Subsec. (h)(11)(D)(ii). Pub. L. 108–311, § 402(a)(3), substituted “a taxpayer to whom this section applies” for “an individual”.
Subsec. (i)(1)(B)(i). Pub. L. 108–311, §§ 101(d)(1),
105, temporarily struck out “($12,000 in the case of taxable years beginning after December 31, 2004, and before January 1, 2008)” after “$14,000”. See Effective and Termination Dates of 2004 Amendments note below.
Subsec. (i)(1)(C). Pub. L. 108–311, §§ 101(d)(2),
105, temporarily reenacted heading without change and amended text generally, substituting provisions relating to inflation adjustment in calendar years after 2003 for such provisions in calendar years after 2000. See Effective and Termination Dates of 2004 Amendments note below.
2003—Subsec. (f)(8)(A). Pub. L. 108–27, §§ 102(b)(1),
107, temporarily substituted “2002” for “2004”. See Effective and Termination Dates of 2003 Amendment note below.
Subsec. (f)(8)(B). Pub. L. 108–27, §§ 102(a),
107, temporarily inserted table item relating to years 2003 and 2004. See Effective and Termination Dates of 2003 Amendment note below.
Subsec. (h)(1)(B). Pub. L. 108–27, §§ 301(a)(1),
303, temporarily substituted “5 percent (0 percent in the case of taxable years beginning after 2007)” for “10 percent”. See Effective and Termination Dates of 2003 Amendment note below.
Subsec. (h)(1)(C). Pub. L. 108–27, §§ 301(a)(2)(A),
303, temporarily substituted “15 percent” for “20 percent”. See Effective and Termination Dates of 2003 Amendment note below.
Subsec. (h)(2). Pub. L. 108–27, §§ 301(b)(1)(A), (B),
303, temporarily redesignated par. (3) as (2) and struck out heading and text of former par. (2). Text read as follows:
“(A) Reduction in 10-percent rate.—In the case of any taxable year beginning after December 31, 2000, the rate under paragraph (1)(B) shall be 8 percent with respect to so much of the amount to which the 10-percent rate would otherwise apply as does not exceed qualified 5-year gain, and 10 percent with respect to the remainder of such amount.
“(B) Reduction in 20-percent rate.—The rate under paragraph (1)(C) shall be 18 percent with respect to so much of the amount to which the 20-percent rate would otherwise apply as does not exceed the lesser of—
“(i) the excess of qualified 5-year gain over the amount of such gain taken into account under subparagraph (A) of this paragraph; or
“(ii) the amount of qualified 5-year gain (determined by taking into account only property the holding period for which begins after December 31, 2000),
and 20 percent with respect to the remainder of such amount. For purposes of determining under the preceding sentence whether the holding period of property begins after December 31, 2000, the holding period of property acquired pursuant to the exercise of an option (or other right or obligation to acquire property) shall include the period such option (or other right or obligation) was held.” See Effective and Termination Dates of 2003 Amendment note below.
Subsec. (h)(3). Pub. L. 108–27, §§ 302(e)(1),
303, temporarily amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “For purposes of this subsection, the term ‘adjusted net capital gain’ means net capital gain reduced (but not below zero) by the sum of—
“(A) unrecaptured section
1250 gain; and
“(B) 28-percent rate gain.” See Effective and Termination Dates of 2003 Amendment note below.
Pub. L. 108–27, §§ 301(b)(1)(B),
303, temporarily redesignated par. (4) as (3). Former par. (3) temporarily redesignated (2). See Effective and Termination Dates of 2003 Amendment note below.
Subsec. (h)(4) to (7). Pub. L. 108–27, §§ 301(b)(1)(B),
303, temporarily redesignated pars. (5) to (8) as (4) to (7), respectively. Former par. (4) temporarily redesignated (3). See Effective and Termination Dates of 2003 Amendment note below.
Subsec. (h)(8). Pub. L. 108–27, §§ 301(b)(1)(C),
303, temporarily redesignated par. (10) as (8). Former par. (8) temporarily redesignated (7). See Effective and Termination Dates of 2003 Amendment note below.
Subsec. (h)(9). Pub. L. 108–27, §§ 301(b)(1)(A), (C),
303, temporarily redesignated par. (11) as (9) and struck out heading and text of former par. (9). Text read as follows: “For purposes of this subsection, the term ‘qualified 5-year gain’ means the aggregate long-term capital gain from property held for more than 5 years. The determination under the preceding sentence shall be made without regard to collectibles gain, gain described in paragraph (7)(A)(i), and section
1202 gain.” See Effective and Termination Dates of 2003 Amendment note below.
Subsec. (h)(10). Pub. L. 108–27, §§ 301(b)(1)(C),
303, temporarily redesignated par. (12) as (10). Former par. (10) temporarily redesignated (8). See Effective and Termination Dates of 2003 Amendment note below.
Subsec. (h)(11). Pub. L. 108–27, §§ 302(a),
303, temporarily added par. (11). See Effective and Termination Dates of 2003 Amendment note below.
Pub. L. 108–27, §§ 301(b)(1)(C),
303, temporarily redesignated par. (11) as (9). See Effective and Termination Dates of 2003 Amendment note below.
Subsec. (h)(12). Pub. L. 108–27, §§ 301(b)(1)(C),
303, temporarily redesignated par. (12) as (10). See Effective and Termination Dates of 2003 Amendment note below.
Subsec. (i)(1)(B)(i). Pub. L. 108–27, §§ 104(a),
107, temporarily substituted “($12,000 in the case of taxable years beginning after December 31, 2004, and before January 1, 2008)” for “($12,000 in the case of taxable years beginning before January 1, 2008)”. See Effective and Termination Dates of 2003 Amendment note below.
Subsec. (i)(1)(C). Pub. L. 108–27, §§ 104(b),
107, temporarily amended heading and text of subpar. (C) generally. Text read as follows: “In prescribing the tables under subsection (f) which apply with respect to taxable years beginning in calendar years after 2000—
“(i) the Secretary shall make no adjustment to the initial bracket amount for any taxable year beginning before January 1, 2009,
“(ii) the cost-of-living adjustment used in making adjustments to the initial bracket amount for any taxable year beginning after December 31, 2008, shall be determined under subsection (f)(3) by substituting ‘2007’ for ‘1992’ in subparagraph (B) thereof, and
“(iii) such adjustment shall not apply to the amount referred to in subparagraph (B)(iii).
If any amount after adjustment under the preceding sentence is not a multiple of $50, such amount shall be rounded to the next lowest multiple of $50.” See Effective and Termination Dates of 2003 Amendment note below.
Subsec. (i)(2). Pub. L. 108–27, §§ 105(a),
107, temporarily amended table generally. Prior to amendment, table read as follows:
| “In the case of taxable years beginning during calendar year: | The corresponding percentages shall be substituted for the following percentages: | 28% | 31% | 36% | 39.6% | |
|---|---|---|---|---|---|---|
| 2001 | 27.5% | 30.5% | 35.5% | 39.1% | ||
| 2002 and 2003 | 27.0% | 30.0% | 35.0% | 38.6% | ||
| 2004 and 2005 | 26.0% | 29.0% | 34.0% | 37.6% | ||
| 2006 and thereafter | 25.0% | 28.0% | 33.0% | 35.0%” |
2001—Subsec. (f). Pub. L. 107–16, §§ 302(b)(2),
901, temporarily substituted “Phaseout of marriage penalty in 15-percent bracket; adjustments” for “Adjustments” in heading. See Effective and Termination Dates of 2001 Amendment note below.
Subsec. (f)(2)(A). Pub. L. 107–16, §§ 302(b)(1),
901, temporarily inserted “except as provided in paragraph (8),” before “by increasing”. See Effective and Termination Dates of 2001 Amendment note below.
Subsec. (f)(6)(B). Pub. L. 107–16, §§ 301(c)(1),
901, temporarily substituted “(other than with respect to sections
63
(c)(4) and
151
(d)(4)(A)) shall be applied” for “(other than with respect to subsection (c)(4) of section
63 (as it applies to subsections (c)(5)(A) and (f) of such section) and section
151
(d)(4)(A)) shall be applied”. See Effective and Termination Dates of 2001 Amendment note below.
Subsec. (f)(8). Pub. L. 107–16, §§ 302(a),
901, temporarily added par. (8). See Effective and Termination Dates of 2001 Amendment note below.
Subsec. (g)(7)(B)(ii)(II). Pub. L. 107–16, §§ 101(c)(1),
901, temporarily substituted “10 percent.” for “15 percent”. See Effective and Termination Dates of 2001 Amendment note below.
Subsec. (h)(1)(A)(ii)(I), (B)(i). Pub. L. 107–16, §§ 101(c)(2)(A),
901, temporarily substituted “25 percent” for “28 percent”. See Effective and Termination Dates of 2001 Amendment note below.
Subsec. (h)(13). Pub. L. 107–16, §§ 101(c)(2)(B),
901, temporarily struck out par. (13), which set out special rules for determination of 28-percent rate gain, unrecaptured section
1250 gain, pass-thru entities, and charitable remainder trusts. See Effective and Termination Dates of 2001 Amendment note below.
Subsec. (i). Pub. L. 107–16, §§ 101(a),
901, temporarily added subsec. (i). See Effective and Termination Dates of 2001 Amendment note below.
2000—Subsec.(h)(8). Pub. L. 106–554 substituted “means the excess of—” and subpars. (A) and (B) for “means an amount equal to the gain excluded from gross income under section
1202
(a).”
1998—Subsec. (g)(3)(C), (D). Pub. L. 105–206, § 6007(f)(1), redesignated subpar. (D) as (C) and struck out heading and text of former subpar. (C). Text read as follows: “If tax is imposed under section
644
(a)(1) with respect to the sale or exchange of any property of which the parent was the transferor, for purposes of applying subparagraph (A) to the taxable year of the parent in which such sale or exchange occurs—
“(i) taxable income of the parent shall be increased by the amount treated as included in gross income under section
644
(a)(2)(A)(i), and
“(ii) the amount described in subparagraph (A)(ii) shall be increased by the amount of the excess referred to in section
644
(a)(2)(A).”
Subsec. (h). Pub. L. 105–206, § 6005(d)(1), reenacted subsec. heading without change and amended text of subsec. (h) generally, substituting present provisions comprising pars. (1) to (13) for former similar provisions comprising pars. (1) to (11).
Subsec. (h)(5). Pub. L. 105–206, § 5001(a)(1), amended par. (5) generally. Prior to amendment, par. (5) read as follows:
“(5) 28-percent rate gain.—For purposes of this subsection—
“(A) In general.—The term ‘28-percent rate gain’ means the excess (if any) of—
“(i) the sum of—
“(I) the aggregate long-term capital gain from property held for more than 1 year but not more than 18 months;
“(II) collectibles gain; and
“(III) section
1202 gain, over
“(ii) the sum of—
“(I) the aggregate long-term capital loss (not described in subclause (IV)) from property referred to in clause (i)(I);
“(II) collectibles loss;
“(III) the net short-term capital loss; and
“(IV) the amount of long-term capital loss carried under section
1212
(b)(1)(B) to the taxable year.
“(B) Special rules.—
“(i) Short sale gains and holding periods.—Rules similar to the rules of section
1233
(b) shall apply where the substantially identical property has been held more than 1 year but not more than 18 months; except that, for purposes of such rules—
“(I) section
1233
(b)(1) shall be applied by substituting ‘18 months’ for ‘1 year’ each place it appears; and
“(II) the holding period of such property shall be treated as being 1 year on the day before the earlier of the date of the closing of the short sale or the date such property is disposed of.
“(ii) Long-term losses.—Section
1233
(d) shall be applied separately by substituting ‘18 months’ for ‘1 year’ each place it appears.
“(iii) Options.—A rule similar to the rule of section
1092
(f) shall apply where the stock was held for more than 18 months.
“(iv) Section
1256 contracts.—Amounts treated as long-term capital gain or loss under section
1256
(a)(3) shall be treated as attributable to property held for more than 18 months.”
Subsec. (h)(6)(A). Pub. L. 105–206, § 5001(a)(2), substituted “1 year” for “18 months”.
Subsec. (h)(7)(A)(i), (ii). Pub. L. 105–206, § 5001(a)(3), amended cls. (i) and (ii) generally. Prior to amendment, cls. (i) and (ii) read as follows:
“(i) the amount of long-term capital gain (not otherwise treated as ordinary income) which would be treated as ordinary income if—
“(I) section
1250
(b)(1) included all depreciation and the applicable percentage under section
1250
(a) were 100 percent, and
“(II) only gain from property held for more than 18 months were taken into account, over
“(ii) the excess (if any) of—
“(I) the amount described in paragraph (5)(A)(ii), over
“(II) the amount described in paragraph (5)(A)(i).”
Subsec. (h)(13). Pub. L. 105–206, § 5001(a)(4), struck out “for periods during 1997” after “Special rules” in par. heading and amended headings and text of subpars. (A) and (B) generally. Prior to amendment, subpars. (A) and (B) read as follows:
“(A) Determination of 28-percent rate gain.—In applying paragraph (5)—
“(i) the amount determined under subclause (I) of paragraph (5)(A)(i) shall include long-term capital gain (not otherwise described in paragraph (5)(A)(i)) which is properly taken into account for the portion of the taxable year before May 7, 1997;
“(ii) the amounts determined under subclause (I) of paragraph (5)(A)(ii) shall include long-term capital loss (not otherwise described in paragraph (5)(A)(ii)) which is properly taken into account for the portion of the taxable year before May 7, 1997; and
“(iii) clauses (i)(I) and (ii)(I) of paragraph (5)(A) shall be applied by not taking into account any gain and loss on property held for more than 1 year but not more than 18 months which is properly taken into account for the portion of the taxable year after May 6, 1997, and before July 29, 1997.
“(B) Other special rules.—
“(i) Determination of unrecaptured section
1250 gain not to include pre-may 7, 1997 gain.—The amount determined under paragraph (7)(A)(i) shall not include gain properly taken into account for the portion of the taxable year before May 7, 1997.
“(ii) Other transitional rules for 18-month holding period.—Paragraphs (6)(A) and (7)(A)(i)(II) shall be applied by substituting ‘1 year’ for ‘18 months’ with respect to gain properly taken into account for the portion of the taxable year after May 6, 1997, and before July 29, 1997.”
Subsec. (h)(13)(B). Pub. L. 105–277, § 4002(i)(1), substituted “paragraph (7)(A)(i)” for “paragraph (7)(A)” in introductory provisions.
Subsec. (h)(13)(D). Pub. L. 105–277, § 4002(i)(3), added subpar. (D).
1997—Subsec. (h). Pub. L. 105–34 amended heading and text of subsec. (h) generally. Prior to amendment, text read as follows: “If a taxpayer has a net capital gain for any taxable year, then the tax imposed by this section shall not exceed the sum of—
“(1) a tax computed at the rates and in the same manner as if this subsection had not been enacted on the greater of—
“(A) taxable income reduced by the amount of the net capital gain, or
“(B) the amount of taxable income taxed at a rate below 28 percent, plus
“(2) a tax of 28 percent of the amount of taxable income in excess of the amount determined under paragraph (1).
For purposes of the preceding sentence, the net capital gain for any taxable year shall be reduced (but not below zero) by the amount which the taxpayer elects to take into account as investment income for the taxable year under section
163
(d)(4)(B)(iii).”
1996—Subsec. (g)(7)(A)(ii). Pub. L. 104–188, § 1704(m)(1), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “such gross income is more than $500 and less than $5,000,”.
Subsec. (g)(7)(B)(i). Pub. L. 104–188, § 1704(m)(2)(A), substituted “twice the amount described in paragraph (4)(A)(ii)(I)” for “$1,000”.
Subsec. (g)(7)(B)(ii)(II). Pub. L. 104–188, § 1704(m)(2)(B), amended subcl. (II) generally. Prior to amendment, subcl. (II) read as follows: “for each such child, the lesser of $75 or 15 percent of the excess of the gross income of such child over $500, and”.
1993—Subsecs. (a) to (e). Pub. L. 103–66, §§ 13201(a),
13202
(a), amended subsecs. (a) to (e) generally, substituting five-tiered tax tables for all categories applicable to tax years after December 31, 1992, for prior three-tiered tax tables.
Subsec. (f)(1). Pub. L. 103–66, § 13201(b)(3)(A)(i), substituted “1993” for “1990”.
Subsec. (f)(3)(B). Pub. L. 103–66, § 13201(b)(3)(A)(ii), substituted “1992” for “1989”.
Subsec. (f)(7). Pub. L. 103–66, § 13201(b)(3)(B), added par. (7).
Subsec. (h). Pub. L. 103–66, § 13206(d)(2), inserted as concluding provision at end “For purposes of the preceding sentence, the net capital gain for any taxable year shall be reduced (but not below zero) by the amount which the taxpayer elects to take into account as investment income for the taxable year under section
163
(d)(4)(B)(iii).”
1990—Subsecs. (a) to (e). Pub. L. 101–508, § 11101(a), amended subsecs. (a) to (e) generally, substituting three-tiered tax tables for all categories applicable to tax years after Dec. 31, 1990, for prior two-tiered tax tables.
Subsec. (f)(1). Pub. L. 101–508, § 11101(d)(1)(A)(i), substituted “1990” for “1988”.
Subsec. (f)(3)(B). Pub. L. 101–508, § 11101(d)(1)(A)(ii), substituted “1989” for “1987”.
Subsec. (f)(6)(A). Pub. L. 101–508, § 11104(b)(1), substituted “section
151
(d)(4)” for “section
151
(d)(3)”.
Pub. L. 101–508, § 11101(b)(2), struck out “subsection (g)(4),” after “paragraph (2)(A),”.
Subsec. (f)(6)(B). Pub. L. 101–508, § 11104(b)(2), substituted “section
151
(d)(4)(A)” for “section
151
(d)(3)”.
Subsec. (g). Pub. L. 101–508, § 11101(d)(2), redesignated subsec. (i) as (g).
Pub. L. 101–508, § 11101(b)(1), struck out subsec. (g) which provided for phaseout of 15-percent rate and personal exemptions.
Subsec. (h). Pub. L. 101–508, § 11101(d)(2), redesignated subsec. (j) as (h) and struck out former subsec. (h) which provided tax schedules for taxable years beginning in 1987.
Subsec. (i). Pub. L. 101–508, § 11101(d)(2), redesignated subsec. (i) as (g).
Subsec. (j). Pub. L. 101–508, § 11101(d)(2), redesignated subsec. (j) as (h).
Pub. L. 101–508, § 11101(c), amended subsec. (j) generally. Prior to amendment, subsec. (j) read as follows:
“(1) In general.—If a taxpayer has a net capital gain for any taxable year to which this subsection applies, then the tax imposed by this section shall not exceed the sum of—
“(A) a tax computed at the rates and in the same manner as if this subsection had not been enacted on the greater of—
“(i) the taxable income reduced by the amount of net capital gain, or
“(ii) the amount of taxable income taxed at a rate below 28 percent, plus
“(B) a tax of 28 percent of the amount of taxable income in excess of the amount determined under subparagraph (A), plus
“(C) the amount of increase determined under subsection (g).
“(2) Years to which subsection applies.—This subsection shall apply to—
“(A) any taxable year beginning in 1987, and
“(B) any taxable year beginning after 1987 if the highest rate of tax set forth in subsection (a), (b), (c), (d), or (e) (whichever applies) for such taxable year exceeds 28 percent.”
1989—Subsec. (f)(6)(B). Pub. L. 101–239, § 7831(a), substituted “subsection (c)(4) of section
63 (as it applies to subsections (c)(5)(A) and (f) of such section) and section
151
(d)(3)” for “section
63
(c)(4)”.
Subsec. (i)(3)(C), (D). Pub. L. 101–239, § 7811(j)(1), redesignated subpar. (C), relating to special rule where parent has different taxable year, as (D).
Subsec. (i)(7)(A). Pub. L. 101–239, § 7816(b), inserted “(other than for purposes of this paragraph)” after “shall be treated” in concluding provisions.
1988—Subsec. (g)(2). Pub. L. 100–647, § 1001(a)(3), inserted provision relating to application of subpar. (B) at end of last sentence.
Subsec. (i)(3)(A). Pub. L. 100–647, § 1014(e)(2), substituted “any exclusion, deduction, or credit” for “any deduction or credit”.
Subsec. (i)(3)(C). Pub. L. 100–647, § 1014(e)(7), added subpar. (C) relating to special rule where parent has different taxable year.
Pub. L. 100–647, § 1014(e)(1), added subpar. (C) relating to coordination with section
644.
Subsec. (i)(4)(A)(i). Pub. L. 100–647, § 1014(e)(3)(A), substituted “adjusted gross income” for “gross income” and inserted “attributable to” after “which is not”.
Subsec. (i)(4)(A)(ii)(II). Pub. L. 100–647, § 1014(e)(3)(B)–(D), substituted “his deductions” for “his deduction”, “the itemized deductions allowed” for “the deductions allowed”, and “adjusted gross income” for “gross income”.
Subsec. (i)(5)(A). Pub. L. 100–647, § 1014(e)(6), substituted “custodial parent (within the meaning of section
152
(e))” for “custodial parent”.
Subsec. (i)(7). Pub. L. 100–647, § 6006(a), added par. (7).
1986—Subsecs. (a) to (e). Pub. L. 99–514, § 101(a), in amending subsecs. (a) to (e) generally, substituted a general tax table for tax tables (1), (2), and (3) in each subsec. applicable to taxable years beginning in 1982, 1983, and after 1983, respectively.
Subsec. (f). Pub. L. 99–514, § 101(a), in amending subsec. (f) generally, in par. (1) substituted “1988,” for “1984” and struck out “paragraph (3) of” before “subsections”, in par. (2) struck out “paragraph (3) of” before “subsection” in introductory provisions, substituted subpars. (A) to (C) for former subpars. (A) to (C) which read as follows:
“(A) by increasing—
“(i) the maximum dollar amount on which no tax is imposed under such table, and
“(ii) the minimum and maximum dollar amounts for each rate bracket for which a tax is imposed under such table,
by the cost-of-living adjustment for such calendar year,
“(B) by not changing the rate applicable to any rate bracket as adjusted under subparagraph (A)(ii), and
“(C) by adjusting the amounts setting forth the tax to the extent necessary to reflect the adjustments in the rate brackets.”,
and struck out concluding provisions which read as follows: “If any increase determined under subparagraph (A) is not a multiple of $10, such increase shall be rounded to the nearest multiple of $10 (or if such increase is a multiple of $5, such increase shall be increased to the next highest multiple of $10).”, in par. (3)(B) substituted “1987” for “1983”, in par. (4) substituted “August 31” for “September 30”, in par. (5) inserted requirement that the Consumer Price Index most consistent with such Index for calendar year 1986 be used, and added par. (6).
Subsecs. (g), (h). Pub. L. 99–514, § 101(a), in amending section generally, added subsecs. (g) and (h).
Subsec. (i). Pub. L. 99–514, § 1411(a), added subsec. (i).
Subsec. (j). Pub. L. 99–514, § 302(a), added subsec. (j).
1982—Subsecs. (d), (e). Pub. L. 97–448, § 101(a)(3), set out as a note below, provided for amendment of the tables applying to married individuals filing separately or to estates and trusts so as to correct any figure differing by not more than 50 cents from the correct amount under the formula used in constructing such table. Corrections to the tables in subsecs. (d) and (e) appeared in Announcement 83–50 contained in Internal Revenue Bulletin No. 1983–12 of Mar. 21, 1983.
1981—Subsecs. (a) to (e). Pub. L. 97–34, § 101(a), generally revised tax tables downward providing for cumulative across-the-board reductions of 23 percent on a three phase schedule under which different new rates were set for taxable years beginning in 1982, for taxable years beginning in 1983, and for taxable years beginning after 1983.
Subsec. (f). Pub. L. 97–34, § 104(a), added subsec. (f).
1978—Subsec. (a). Pub. L. 95–600 generally made a downward revision of tax table for married individuals filing joint returns and surviving spouses resulting in a table under which, among other changes, a bottom bracket imposing no tax on taxable income of $3,400 or less was substituted for a bottom bracket imposing no tax on taxable income of $3,200 or less.
Subsec. (b). Pub. L. 95–600 generally made a downward revision of tax table for heads of household resulting in a table under which, among other changes, a bottom bracket imposing no tax on taxable income of $2,300 or less was substituted for a bottom bracket imposing no tax on taxable income of $2,200 or less.
Subsec. (c). Pub. L. 95–600 generally made a downward revision of tax table for unmarried individuals other than surviving spouses and heads of households resulting in a table under which, among other changes, a bottom bracket imposing no tax on taxable income of $2,300 or less was substituted for a bottom bracket imposing no tax on taxable income of $2,200 or less.
Subsec. (d). Pub. L. 95–600 generally made a downward revision of tax tables for married individuals filing separate returns resulting in a table under which, among other changes, a bottom bracket imposing no tax on taxable income of $1,700 or less was substituted for a bottom bracket imposing no tax on taxable income of $1,600 or less.
Subsec. (e). Pub. L. 95–600 generally made a downward revision of tax tables for estates and trusts resulting in a table under which, among other changes, a bottom bracket under which a tax of 14% is imposed on taxable income of $1,050 for a bottom bracket under which a tax of 14% was imposed on taxable income of $500 or less.
1977—Subsec. (a). Pub. L. 95–30 generally made a downward revision of tax table for married individuals filing joint returns and surviving spouses resulting in a table under which, among other changes, a bottom bracket imposing no tax on taxable income of $3,200 or less was substituted for a bottom bracket under which a tax of 14% had been imposed on a taxable income of $1,000 or less.
Subsec. (b). Pub. L. 95–30 generally made a downward revision of tax table for heads of households resulting in a table under which, among other changes, a bottom bracket imposing no tax on taxable income of $2,200 or less was substituted for a bottom bracket under which a tax of 14% had been imposed on a taxable income of $1,000 or less.
Subsec. (c). Pub. L. 95–30 generally made a downward revision of tax table for unmarried individuals other than surviving spouses and heads of households resulting in a table under which, among other changes, a bottom bracket imposing no tax on taxable income of $2,200 or less was substituted for a bottom bracket under which a tax of 14% had been imposed on a taxable income of $500 or less.
Subsec. (d). Pub. L. 95–30 generally made a downward revision of tax table for married individuals filing separate returns resulting in a table under which, among other changes, a bottom bracket imposing no tax on taxable income of $1,600 or less was substituted for a bottom bracket under which a tax of 14% had been imposed on a taxable income of $500 or less. Provisions making table applicable to estates and trusts were struck out. See subsec. (e).
Subsec. (e). Pub. L. 95–30 added subsec. (e) consisting of table formerly contained in subsec. (d) but without any downward revision and limited so as to apply only to estates and trusts.
1969—Subsec. (a). Pub. L. 91–172 substituted a table of rates of tax for married individuals filing joint returns and surviving spouses for the tables of rates of tax on individuals. For rates of taxes on unmarried individuals and married persons filing separate returns, see subsecs. (c) and (d) of this section.
Subsec. (b). Pub. L. 91–172 generally revised rates of tax of heads of household downwards and struck out provisions defining head of household, determination of status, and limitations. For definition of head of household, determination of status, and limitations, see section
2
(b) of this title.
Subsec. (c). Pub. L. 91–172 substituted rates of tax on unmarried individuals (other than surviving spouses and heads of household) for special rules explaining the rates of tax imposed under former subsecs. (a) and (b)(1) and prescribing a maximum limit of 87 percent of the taxable year.
Subsec. (d). Pub. L. 91–172 substituted a table of rates of tax for married individuals filing separate returns for provision prescribing the applicability of the rates to non-resident aliens. For applicability of rates of tax to non-resident aliens, see section
2
(d) of this title.
Subsec. (e). Pub. L. 91–172 struck out cross reference to section
63. See section
2
(e) of this title.
1966—Subsecs. (d), (e). Pub. L. 89–809 added subsec. (d) and redesignated former subsec. (d) as (e).
1964—Pub. L. 88–272 amended section generally by splitting the former first bracket which started at $2,000 into four new brackets, the 14 percent bracket representing a 30 percent reduction, the 15 percent bracket a 25 percent cut, and the 16 percent bracket a 20 percent cut, and reducing all other brackets by cuts averaging about 20 percent and effectuated these cuts in two steps, one in 1964, and one in 1965.
Effective and Termination Dates of 2004 Amendments
Pub. L. 108–357, title IV, § 413(d), Oct. 22, 2004, 118 Stat. 1510, provided that:
“(1) In general.—Except as provided in paragraph (2), the amendments made by this section [amending this section and sections
170,
171,
245,
312,
443,
465,
508,
542,
543,
562,
563,
751,
864,
898,
904,
951,
954,
989,
1014,
1016,
1212,
1223,
1248,
1260,
1291,
1294,
4947,
4948,
6103,
6501, and
6679 of this title and repealing sections
551 to
558,
1246,
1247, and
6035 of this title] shall apply to taxable years of foreign corporations beginning after December 31, 2004, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end.
“(2) Subsection (c)(27).—The amendments made by subsection (c)(27) [amending section
6103 of this title] shall apply to disclosures of return or return information with respect to taxable years beginning after December 31, 2004.”
Pub. L. 108–311, title I, § 101(e), Oct. 4, 2004, 118 Stat. 1168, provided that: “The amendments made by this section [amending this section and sections
24 and
63 of this title] shall apply to taxable years beginning after December 31, 2003.”
Pub. L. 108–311, title I, § 105, Oct. 4, 2004, 118 Stat. 1169, provided that: “Each amendment made by this title [amending this section and sections
24,
32,
55, and
63 of this title] shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 [Pub. L. 107–16, § 901, set out as an Effective and Termination Dates of 2001 Amendment note below] to the same extent and in the same manner as the provision of such Act to which such amendment relates.”
Pub. L. 108–311, title IV, § 402(b), Oct. 4, 2004, 118 Stat. 1186, provided that: “The amendments made by subsection (a) [amending this section and sections
691,
854, and
857 of this title and provisions set out as a note under this section] shall take effect as if included in section 302 of the Jobs and Growth Tax Relief Reconciliation Act of 2003 [Pub. L. 108–27].”
Effective and Termination Dates of 2003 Amendment
Pub. L. 108–27, title I, § 102(c), May 28, 2003, 117 Stat. 754, provided that: “The amendments made by this section [amending this section and provisions set out as a note under this section] shall apply to taxable years beginning after December 31, 2002.”
Pub. L. 108–27, title I, § 104(c), May 28, 2003, 117 Stat. 755, provided that:
“(1) In general.—The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2002.
“(2) Tables for 2003.—The Secretary of the Treasury shall modify each table which has been prescribed under section 1(f) of the Internal Revenue Code of 1986 for taxable years beginning in 2003 and which relates to the amendment made by subsection (a) to reflect such amendment.”
Pub. L. 108–27, title I, § 105(b), May 28, 2003, 117 Stat. 755, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2002.”
Pub. L. 108–27, title I, § 107, May 28, 2003, 117 Stat. 755, provided that: “Each amendment made by this title [enacting section
6429 of this title, amending this section and sections
24,
55, and
63 of this title, and amending provisions set out as notes under this section] shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 [Pub. L. 107–16, § 901, set out as an Effective and Termination Dates of 2001 Amendment note below] to the same extent and in the same manner as the provision of such Act to which such amendment relates.”
Pub. L. 108–27, title III, § 301(d), May 28, 2003, 117 Stat. 760, provided that:
“(1) In general.—Except as otherwise provided by this subsection, the amendments made by this section [amending this section, sections
55,
57,
1445, and
7518 of this title, and section
1177 of Title
46, Appendix, Shipping] shall apply to taxable years ending on or after May 6, 2003.
“(2) Withholding.—The amendment made by subsection (a)(2)(C) [amending section
1445 of this title] shall apply to amounts paid after the date of the enactment of this Act [May 28, 2003].
“(3) Small business stock.—The amendments made by subsection (b)(3) [amending section
57 of this title] shall apply to dispositions on or after May 6, 2003.”
Pub. L. 108–27, title III, § 302(f), May 28, 2003, 117 Stat. 764, as amended by Pub. L. 108–311, title IV, § 402(a)(6), Oct. 4, 2004, 118 Stat. 1185, provided that:
“(1) In general.—Except as provided in paragraph (2), the amendments made by this section [amending this section and sections
163,
301,
306,
338,
467,
531,
541,
584,
702,
854,
857,
1255, and
1257 of this title and repealing section
341 of this title] shall apply to taxable years beginning after December 31, 2002.
“(2) Pass-thru entities.—In the case of a pass-thru entity described in subparagraph (A), (B), (C), (D), (E), or (F) of section 1(h)(10) of the Internal Revenue Code of 1986, as amended by this Act, the amendments made by this section shall apply to taxable years ending after December 31, 2002; except that dividends received by such an entity on or before such date shall not be treated as qualified dividend income (as defined in section 1(h)(11)(B) of such Code, as added by this Act).”
Pub. L. 108–27, title III, § 303, May 28, 2003, 117 Stat. 764, provided that: “All provisions of, and amendments made by, this title [amending this section, sections
55,
57,
163,
301,
306,
338,
467,
531,
541,
584,
702,
854,
857,
1255,
1257,
1445, and
7518 of this title, and section
1177 of Title
46, Appendix, Shipping, repealing section
341 of this title, and enacting provisions set out as notes under this section] shall not apply to taxable years beginning after December 31, 2008, and the Internal Revenue Code of 1986 shall be applied and administered to such years as if such provisions and amendments had never been enacted.”
Effective and Termination Dates of 2001 Amendment
Pub. L. 107–16, title I, § 101(d), June 7, 2001, 115 Stat. 44, provided that:
“(1) In general.—Except as provided in paragraph (2), the amendments made by this section [enacting section
6428 of this title and amending this section and sections
15,
531,
541,
3402, and
3406 of this title] shall apply to taxable years beginning after December 31, 2000.
“(2) Amendments to withholding provisions.—The amendments made by paragraphs (6), (7), (8), (9), (10), and (11) of subsection (c) [amending sections
3402 and
3406 of this title] shall apply to amounts paid after the 60th day after the date of the enactment of this Act [June 7, 2001]. References to income brackets and rates of tax in such paragraphs shall be applied without regard to section 1(i)(1)(D) of the Internal Revenue Code of 1986.”
Pub. L. 107–16, title III, § 301(d), June 7, 2001, 115 Stat. 54, as amended by Pub. L. 108–27, title I, § 103(b), May 28, 2003, 117 Stat. 754, provided that: “The amendments made by this section [amending this section and section
63 of this title] shall apply to taxable years beginning after December 31, 2002.”
Pub. L. 107–16, title III, § 302(c), June 7, 2001, 115 Stat. 54, as amended by Pub. L. 108–27, title I, § 102(b)(2), May 28, 2003, 117 Stat. 754, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2002.”
Pub. L. 107–16, title IX, § 901, June 7, 2001, 115 Stat. 150, as amended by Pub. L. 107–358, § 2, Dec. 17, 2002, 116 Stat. 3015, provided that:
“(a) In General.—All provisions of, and amendments made by, this Act [see Tables for classification] shall not apply—
“(1) to taxable, plan, or limitation years beginning after December 31, 2010, or
“(2) in the case of title V [see Tables for classification], to estates of decedents dying, gifts made, or generation skipping transfers, after December 31, 2010.
“(b) Application of Certain Laws.—The Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1001 et seq.] shall be applied and administered to years, estates, gifts, and transfers described in subsection (a) as if the provisions and amendments described in subsection (a) had never been enacted.”
“(c) Exception.—Subsection (a) shall not apply to section
803 [set out as a note preceding section
101 of this title] (relating to no federal income tax on restitution received by victims of the Nazi regime or their heirs or estates).”
Effective Date of 2000 Amendment
Pub. L. 106–554, § 1(a)(7) [title I, § 117(c)], Dec. 21, 2000, 114 Stat. 2763, 2763A–605, provided that: “The amendments made by this section [amending this section and section
1202 of this title] shall apply to stock acquired after the date of the enactment of this Act [Dec. 21, 2000].”
Effective Date of 1998 Amendments
Pub. L. 105–277, div. J, title IV, § 4002(k), Oct. 21, 1998, 112 Stat. 2681–908, provided that: “The amendments made by this section [amending this section and sections
408A,
6015,
6103,
6159,
7421,
7443A, and
7491 of this title and amending provisions set out as a note under section
6601 of this title] shall take effect as if included in the provisions of the 1998 Act [Pub. L. 105–206] to which they relate.”
Pub. L. 105–206, title V, § 5001(b), July 22, 1998, 112 Stat. 788, provided that:
“(1) In general.—Except as provided in paragraph (2), the amendments made by this section [amending this section and sections
1223 and
1235 of this title] shall apply to taxable years ending after December 31, 1997.
“(2) Subsection (a)(5).—The amendments made by subsection (a)(5) [amending sections
1223 and
1235 of this title] shall take effect on January 1, 1998.”
Pub. L. 105–206, title VI, § 6024, July 22, 1998, 112 Stat. 826, provided that: “Except as otherwise provided in this title [see Tables for classification], the amendments made by this title shall take effect as if included in the provisions of the Taxpayer Relief Act of 1997 [Pub. L. 105–34] to which they relate.”
Effective Date of 1997 Amendment
Section 311(d) of Pub. L. 105–34 provided that:
“(1) In general.—Except as provided in paragraph (2), the amendments made by this section [amending this section, sections
55,
57,
904,
1445, and
7518 of this title, and section
1177 of Title
46, Appendix, Shipping] shall apply to taxable years ending after May 6, 1997.
“(2) Withholding.—The amendment made by subsection (c)(1) [amending section
1445 of this title] shall apply only to amounts paid after the date of the enactment of this Act [Aug. 5, 1997].”
Effective Date of 1996 Amendment
Section 1704(m)(4) of Pub. L. 104–188 provided that: “The amendments made by this subsection [amending this section and section
59 of this title] shall apply to taxable years beginning after December 31, 1995.”
Effective Date of 1993 Amendment
Section 13201(c) of Pub. L. 103–66 provided that: “The amendments made by this section [amending this section and sections
41,
63,
68,
132,
151,
453A,
513,
531, and
541 of this title] shall apply to taxable years beginning after December 31, 1992.”
Section 13202(c) of Pub. L. 103–66 provided that: “The amendments made by this section [amending this section and sections
531 and
541 of this title] shall apply to taxable years beginning after December 31, 1992.”
Section 13206(d)(3) of Pub. L. 103–66 provided that: “The amendments made by this subsection [amending this section and section
163 of this title] shall apply to taxable years beginning after December 31, 1992.”
Effective Date of 1990 Amendment
Section 11101(e) of Pub. L. 101–508 provided that: “The amendments made by this section [amending this section, sections
32,
41,
59,
63,
135,
151,
513,
691,
904,
6103, and
7518 of this title, and section
1177 of Title
46, Appendix, Shipping] shall apply to taxable years beginning after December 31, 1990.”
Section 11103(e) of Pub. L. 101–508 provided that: “The amendments made by this section [enacting section
68 of this title and amending this section and section
56 of this title] shall apply to taxable years beginning after December 31, 1990.”
Section 11104(c) of Pub. L. 101–508 provided that: “The amendments made by this section [amending this section and section
151 of this title] shall apply to taxable years beginning after December 31, 1990.”
Effective Date of 1989 Amendment
Section 7817 of Pub. L. 101–239 provided that: “Except as otherwise provided in this part [part I (§§ 7811–7817) of subtitle H of title VII of Pub. L. 101–239, see Tables for classification], any amendment made by this part shall take effect as if included in the provision of the 1988 Act [Pub. L. 100–647] to which such amendment relates.”
Section 7831(g) of Pub. L. 101–239 provided that: “Any amendment made by this section [amending this section and sections
42,
406,
407, and
1250 of this title and provisions set out as notes under sections
141 and
263A of this title] shall take effect as if included in the provision of the Tax Reform Act of 1986 [Pub. L. 99–514] to which such amendment relates.”
Effective Date of 1988 Amendment
Section 1019 of title I of Pub. L. 100–647 provided that:
“(a) General Rule.—Except as otherwise provided in this title, any amendment made by this title [see Tables for classification], shall take effect as if included in the provision of the Reform Act [Pub. L. 99–514] to which such amendment relates.
“(b) Waiver of Estimated Tax Penalties.—No addition to tax shall be made under section 6654 or 6655 of the 1986 Code for any period before April 16, 1989 (March 16, 1989 in the case of a taxpayer subject to section 6655 of the 1986 Code) with respect to any underpayment to the extent such underpayment was created or increased by any provision of this title or title II [see Tables for classification].”
Section 6006(b) of Pub. L. 100–647 provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginnin