Tax Changes of Interest to Ministers in 1999

1. Tax rate adjustments. For 1999, the income tax rates for married couples filing jointly are 15% for the first $43,050 of taxable income, 28% for taxable income from $43,050 to $104,050, 31% for taxable income from $104,050 to $158,550, 36% on taxable income from $158,550 to $283,150, and 39.6% on taxable income in excess of $283,150. For 1999, the income tax rates for single individuals are 15% for the first $25,750 of taxable income, 28% for taxable income from $25,750 to $62,450, 31% for taxable income from $62,450 to $130,250, 36% on taxable income between $130,250 and $283,150, and 39.6% on taxable income in excess of $283,150. The new income tax rate structure is summarized in the two tables on the following page.

Example. Rev. B is married and for 1999 he and his wife report gross income of $50,000 on their income tax return. Their taxable income, after deducting itemized deductions, personal exemptions, and a housing allowance, is $35,000. According to Table 1, they will pay an income tax rate of 15% on their entire taxable income, since it is below $43,050.

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