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Free eNewsletter & Special Promotions
Volume 5, Issue 12, December 2007
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The year is quickly coming to an end, and it is time to begin thinking about your 2007 income tax return. To help you get started, the federal tax rate schedules from the IRS, which are used to compute your 2007 income tax, are provided below:
Schedule X – Single
If taxable income |
But not |
The tax is: |
$0 |
$7,825 |
10% of the amount over $0 |
| $7,825 | $31,850 | $782.50 plus 15% of the amount over $7,825 |
$31,850 |
$77,100 |
$4,386.25 plus 25% of the amount over $31,850 |
$77,100 |
$160,850 |
$15,698.75 plus 28% of the amount over $77,100 |
$160,850 |
$349,700 |
$39,148.75 plus 33% of the amount over $160,850 |
$349,700 |
No Limit |
$101,469.25 plus 35% of the amount over $349,700 |
Schedule Y-1 – Married Filing Jointly or Qualifying Widow(er)
If taxable income |
But not |
The tax is: |
$0 |
$15,650 |
10% of the amount over $0 |
| $15,650 | $63,700 | $1,565.00 plus 15% of the amount over $15,650 |
$63,700 |
$128,500 |
$8,772.50 plus 25% of the amount over $63,700 |
$128,500 |
$195,850 |
$24,972.50 plus 28% of the amount over $128,500 |
$195,850 |
$349,700 |
$43,830.50 plus 33% of the amount over $195,850 |
$349,700 |
No Limit |
$94,601.00 plus 35% of the amount over $349,700 |
Schedule Y-2 – Married Filing Separately
If taxable income |
But not |
The tax is: |
$0 |
$7,825 |
10% of the amount over $0 |
| $7,825 | $31,850 | $782.50 plus 15% of the amount over $7,825 |
$31,850 |
$64,250 |
$4,386.25 plus 25% of the amount over $31,850 |
$64,250 |
$97,925 |
$12,486.25 plus 28% of the amount over $64,250 |
$97,925 |
$174,850 |
$21,915.25 plus 33% of the amount over $97,925 |
$174,850 |
No Limit |
$47,300.50 plus 35% of the amount over $174,850 |
Schedule Z – Head of Household
If taxable income |
But not |
The tax is: |
$0 |
$11,200 |
10% of the amount over $0 |
| $11,200 | $42,650 | $1,120.00 plus 15% of the amount over $11,200 |
$42,650 |
$110,100 |
$5,837.50 plus 25% of the amount over $42,650 |
$110,100 |
$178,350 |
$22,700 plus 28% of the amount over $110,100 |
$178,350 |
$349,700 |
$41,810.00 plus 33% of the amount over $178,350 |
$349,700 |
No Limit |
$98,355.50 plus 35% of the amount over $349,700 |
Reviewed November 25, 2007
The certified public accountants and consultants at Kemper CPA Group LLP are available to meet with you to begin discussing your 2007 income tax return. Contact an office near you to set up an appointment today!
Wright Consultants, LLC, a certified public accounting firm, has announced its merger with Kemper CPA Group LLP, effective December 1, 2007.
The merger will benefit both companies and their clients. “Wright Consultants has shown commitment to client service and professionalism that is consistent with Kemper CPA Group's. I believe coming together will only strengthen our firm’s ability to serve our clients’ needs,” said Timothy Bryan, partner-in-charge of Kemper CPA Group’s Evansville office.
Evansville Partners: Greg Newman, Martin Roth, Tony Rubenacker, Nick Whelan, Zenda White, Timothy Bryan, and Marvin Wright
Kemper CPA Group is a top 10 accounting firm in the region and a top 100 firm in the nation, with 27 offices throughout five states, 58 partners, and over 250 professional staff. In addition to Kemper CPA Group, the Evansville office includes Kemper Capital Management LLC, Kemper 1st Choice Payroll LLC, and Kemper Technology Consulting.
Marvin Wright, managing member of Wright Consultants, LLC, feels Kemper CPA Group brings a variety of services and opportunities to his clients that were unavailable before the merger. “We believe it is important to expand our services to help our clients maximize profits, minimize taxes, and build wealth. With Kemper CPA Group’s business model, our clients will benefit from a wider range of business, financial, and tax consulting solutions,” said Wright.
Wright Consultants’ entire staff will move to Kemper CPA Group’s current location on the corner of Third and Walnut streets in downtown Evansville, Indiana. The expected move date is December 3, 2007.
From floods, mudslides, and frost to drought and fires, the nation has had its share of crop-destroying events this year. If you received any crop insurance proceeds as a result of damage to your crops this year, those proceeds are includable income for tax purposes. Generally, those payments are included as income in the year that they are received. Also includable are federal crop disaster payments received as a result of crop damage or destruction, or the inability to plant crops as a result of a natural disaster. It is possible to request that income taxes be withheld from federal crop disaster payments by filing form W-4V, Voluntary Withholding Request.
You may elect to postpone reporting crop insurance payments as income until the following year, provided that you use the cash method of accounting and receive the insurance payments in the same year that the crop damage occurs. One caveat is that, in order to postpone reporting the additional income, you must be able to show that you would have included the income in any tax year following the year the crops were damaged.
If you choose to postpone reporting crop insurance proceeds, the income must be reported, but it does not have to be included as taxable income that year. In order to do so, you must provide the IRS with the proper documentation. The certified public accountants and consultants at Kemper CPA Group LLP can help you properly handle the reporting of your crop insurance payments. Contact an office near you today.
The IRS recently announced that the 2008 standard mileage rate has increased for use of a vehicle for business purposes, while the rate for miles driven for medical or moving purposes has decreased, and the rate for charitable use of a vehicle has remained the same. The rates are used to calculate the deductible cost of operating a vehicle, including cars, vans, pickups, and panel trucks.
Effective January 1, 2008, the rates are as follows:
50.5 cents per mile for miles driven for business purposes, up from 48.5 cents per mile in 2007
19 cents per mile for miles driven for medical or moving purposes, down from 20 cents per mile in 2007
14 cents per mile driven in service of a charitable organization
Should you have any questions about the mileage rates as they pertain to your tax situation, contact the certified public accountants at Kemper CPA Group LLP.
The November/December 2007 issue of the “Loose Change” Newsletter includes the following articles:
| • | Pick Yourself Up, Dust Yourself Off |
| • | Counterfeit Catch |
| • | Sizing Up a Company |
| • | It’s Your Home – Not Your Retirement Fund! |
| • | Error Repairer |
| • | Your Year-end Financial Review – Will It Be Naughty or Nice? |
| • | Honey, Does My Portfolio Look Okay in These? |
| • | I Should Be Saving for What? |
| • | Your Employee? Who Knew! |
| • | Do You and Your Spouse Have the Same Plans for Retirement? |
| • | Single Again? Look After Your Finances |
| • | Put the "Whoa! Whoa!" in Your Holidays |
| • | Tax Help from Your Fund |
| • | Narrow Those Scholarship Odds |
| • | Should You Have a Life Insurance Trust? |
| • | Retirement Plan Withdrawals – Dot Your I’s and Cross Your T’s |
| • | Planning for the "What Ifs" |
| • | Caution: Rollover in Progress |
| • | Quiz Yourself |
Contact Kemper Capital Management LLC for all of your investing needs.
Investment advisory services offered by KCPAG Financial Advisors LLC, a registered investment advisor. Securities officered through Securities America, Inc., a registered broker/dealer. Member NASD/SIPC. Thomas A. Moore, John D.
Porter, Shawna D. Horne, Jeffery C. Holt, CA insurance Lic. #0E38034, Sheila Lautenbacher, Jessica Daugherty, Joseph M. Mendes, CA Insurance Lic. #0C62535, Gregory Meador, Marcia Elder, Registered Representatives. Insurance services offered through KCPAG Insurance Services LLC. Kemper Capital Management LLC and its subsidiaries are not affiliated with Securities America.
Kemper Technology Consulting – The Answer to Your Technology Needs
For small business owners, the price of technology is a major concern. Technology is key in today’s business world, but the costs associated with maintaining current business technology can quickly absorb a large portion of your capital. Therefore, it is essential that small business owners fully understand the capabilities of your existing computer systems and take all steps to preserve the integrity of your business data.
Running an inefficient computer network with programs that do not work seamlessly with your business model is both frustrating and costly. Employees waste time trying to get their jobs done on a less-than-cooperative system, while customers become aggravated when their needs aren’t met in a timely manner.
Similarly, running a network that is not fully secure opens the door for additional expenses. An attack on your network can bring your business down indefinitely, while customers lose trust in your ability to keep their information secure and are tempted to take their business elsewhere.
Your time is better spent keeping your business going; we can take your mind off of your computer technology issues. The certified technology professionals at Kemper Technology Consulting can help you:
Utilize the technology available to you to boost employee productivity
Protect your current software and hardware systems in order to keep them secure and running longer
Determine which software and hardware best suits your current and future business technology needs
Customize an efficient software package to allow you to interact with customers and business partners
Kemper Technology Consulting can help you position your business to maximize all that technology has to offer. We are committed not only to providing you with quality hardware, software, and services, but also to providing you with the support and customer service that you deserve. Contact Kemper Technology Consulting today to learn more about what we can do for your business.
Kemper Technology Consulting
Robinson, IL
618-546-5633
www.kempertc.com
Evansville, IN • Indianapolis, IN • Paducah, KY • Effingham, IL
Please be advised that, based upon current Internal Revenue Service (IRS) rules and standards, the advice herein is not intended to be used, nor can it be used, as the sole basis for decisions. Additional issues may exist that could affect the treatment of the individual transactions, and this narrative does not provide a conclusion with respect to all such issues.
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