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Leslie Bonacum
Neil Allen

January 1, 2000 Also Means Less To The IRS: CCH Releases Tax Bracket Changes For 2000

(RIVERWOODS, ILL., September 22, 1999) – Some of the uncertainties about January 1, 2000 – at least from a tax paying perspective – can be set aside, according to CCH INCORPORATED (CCH), which today released estimated income ranges for each federal tax bracket in 2000. The projections, developed by CCH, a leading provider of tax and business law information, indicate single and married taxpayers will pay a bit less to the Internal Revenue Service (IRS) next year to make up for the impact of inflation.

Because inflation has been low, the tax effects will be modest. But since average incomes have been rising faster than the cost of living, many people will end up even further ahead by the time their 2000 taxes are due, on April 16, 2001. Better still, most people can realize their savings through their withholding and estimated taxes beginning early in 2000.

Based on the projections, some typical examples of the modest decreases for the 2000 tax year, according to CCH, include:

    • A married couple filing jointly with total taxable income of $50,000 could pay $104 less in income taxes in 2000.
    • A single filer with taxable income of $50,000 will contribute $65 less next year.

These decreases are due to the adjustment of tax brackets. As the upper end of each bracket is raised, more of each individual's taxable income is taxed at lower rates.

Adjusted for inflation, it looks like the standard deduction and personal exemption amounts will increase as well for 2000. These increases can produce lower taxes by lowering the taxpayer’s taxable income.

    • Married couples filing jointly will see a projected $150 increase in their standard deduction, to $7,350.
    • Single taxpayers could see a $100 increase over 1999 in their standard deduction, to $4,400.
    • The personal exemption amount will most likely go up in 2000 by $50 to $2,800.

The increases in the standard deductions from 1999 to 2000, like recent annual increases, are modest because of the low rate of inflation. Nevertheless, inflation adjustments do add up over time. For example, the standard deduction has grown through inflation from $5,000 in 1988 for married taxpayers filing joint returns, to the anticipated $7,350 amount for 2000. For a complete look at how income ranges for each tax bracket are projected to shift next year, see the attached CCH chart.

Inflation Adjustments

For more than a decade, the U.S. tax code has required that federal income tax brackets and certain other figures be adjusted for inflation annually. The adjustment is based on Consumer Price Index figures for September through August immediately prior to the adjusted year. CCH’s projections are based on the relevant inflation data released September 15, 1999 by the U.S. Department of Labor.

Annual inflation adjustments have been inserted into the Internal Revenue Code in recent years with increasing frequency. Aside from the 40 separate computations needed to inflation-adjust the tax bracket tables each year, the Code now requires over 50 other inflation-driven computations to determine deduction, exemption and exclusion amounts.

The IRS usually releases official numbers in December each year. CCH tax bracket projections are provided for illustrative purposes only, and should not be used for income tax returns or other federal income tax related purposes until confirmed by the IRS later this year.

CCH INCORPORATED, headquartered in Riverwoods, Ill., was founded in 1913 and has served four generations of business professionals and their clients. The company annually produces more than 700 electronic and print products for the tax, legal, securities, human resources, health care and small business markets. CCH is a wholly owned subsidiary of Wolters Kluwer US.


Married Filing Jointly
(& Surviving Spouse)

2000 Taxable Income
Tax Rate
1999 Taxable Income
$0-$43,850 15% $0-$43,050
$43,850-$105,950 28% $43,050-$104,050
$105,950-$161,450 31% $104,050-$158,550
$161,450-$288,350 36% $158,550-$283,150
$288,350 39.6% over $283,150


Married Filing Separately

2000 Taxable Income Tax Rate 1999 Taxable Income
0-$21,925 15% $0-$21,525
$21,925-$52,975 28% $21,525-$52,025
$52,975-$80,725 31% $52,025-$79,275
$80,725-$144,175 36% $79,275-$141,575
$144,175 39.6% over $141,575

Single Filers

2000 Taxable Income Tax Rate 1999 Taxable Income
$0-$26,250 15% 0-$25,750
$26,250-$63,550 28% $25,750-$62,450
$63,550-$132,600 31% $62,450-$130,250
$132,600-$288,350 36% $130,250-$283,150
$288,350 39.6% over $283,150

Head of Household

2000 Taxable Income Tax Rate 1999 Taxable Income
$0-$35,150 15% $0-$34,550
$35,150-$90,800 28% $34,550-$89,150
$90,800-$147,050 31% $89,150-$144,400
$147,050-$288,350 36% $144,400-$283,150
$288,350 39.6% over $283,150

Standard Deduction Amount

Filing Status 2000 1999 Increase
Married Filing Jointly
(& Surviving Spouse)



Married Filing Separately $3,675 $3,600 $ 75
Single $4,400 $4,300 $100
Head of Household $6,450 $6,350 $100

Standard Deduction for Dependents ("Kiddie" Standard Deduction)

2000 1999 Increase
$700 $700 $0

Income Level At Which Three-Percent Itemized
Deduction Limitation Takes Effect
(Adjusted Gross Income)

Filing Status 2000 1999 Increase
Married Filing Jointly
(& Surviving Spouse)



Married Filing Separately $ 64,475 $ 63,300 $1,175
Single $128,950 $126,600 $2,350
Head of Household $128,950 $126,600 $2,350

Personal Exemption Amounts

2000 1999 Increase
$2,800 $2,750 $ 50

Threshold for Personal Exemption Phaseout

Filing Status 2000 1999 Increase
Married Filing Jointly
(& Surviving Spouse)



Married Filing Separately $ 96,700 $ 94,975 $1,725
Single $128,950 $126,600 $2,350
Head of Household $161,150 $158,300 $2,850

Gift Tax Exemption

2000 1999 Increase
$10,000 $10,000 $0

CCH Note: The Taxpayer Relief Act of 1997 calls for an annual inflation-computation of the $10,000 annual gift tax exclusion, but allows increases only if the computation raises the exclusion by multiples of $1,000. Since this year the inflation computation would raise the exclusion to$10,354, the rounding-convention brings the gift tax exclusion right back down to $10,000.

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