Changes in Tax Rates, etc.

2003 CHANGES IN TAX RATES, PAYROLL TAX RATES, EXEMPTIONS

AND OTHER ITEMS DUE TO 2003 TAX ACT

2003-OLD 2003-NEW

1. Personal Exemptions $3,050 $3,050

2. Standard Deduction

• Single 4,750 4,750

• Head of Household 7,000 7,000

• Married 7,950 9,500

• Dependents 750 750

3. Tax Rates

Single

• 10% Bracket 0 - 6,000 0 - 7,000

• 15% Bracket 6,000 - 28,400 7,000 - 28,400

• 27% / 25% Bracket 28,400 - 68,800 28,400 - 68,800

• 30% / 28% Bracket 68,800 - 143,500 68,800 - 143,500

• 35% / 33% Bracket 143,500 - 311,950 143,500 - 311,950

• 38.6% / 35% Bracket above 311,950 above 311,950

Married

• 10% Bracket 0 - 12,000 0 - 14,000

• 15% Bracket 12,000 - 47,450 14,000 - 56,800

• 27% / 25% Bracket 47,450 - 114,650 56,800 - 114,650

• 30% / 28% Bracket 114,650 - 174,700 114,650 - 174,700

• 35% / 33% Bracket 174,700 - 311,950 174,700 - 311,950

• 38.6% / 35% Bracket above 311,950 above 311,950

4. Phaseout Range for Exemptions 209,250 - 331,750 209,250 - 331,750

(Married Filing Joint)

5. 3% Phaseout of Itemized

Deductions commences at: 139,500 139,500

6. Standard Mileage Rate 36¢ 36¢

7. 401(k) Employee Contribution Limit 12,000 12,000

8. Annual Gift for Tax Exclusion 11,000 11,000

9. NJ Unemployment Tax Wage Base 23,900 23,900

10. Section 179 Limit 25,000 100,000

11. 1^st Year Luxury Auto (Depreciation limit) 4,600 7,650