Definitions
Bond yield
This is the annual yield of your municipal bond or bond fund.
Estimated taxable income
This is your total income, after exemptions, adjustments, and deductions. We use this, along with your filing status, to determine your marginal income tax rate. You can use last year's tax return as a guide to what your taxable income will be for the current year. Your taxable income can be found your income tax form 1040 or 1040A. Make sure to increase or decrease the amount to compensate for any changes to your current year's income.
Federal tax filing status
This is used, along with your taxable income, to determine your Federal marginal income tax rate. The table below lists the Federal income tax rates by income and filing status. We use this table to determine your marginal Federal income tax rate.
Filing Status and Income Tax Rates 2007 |
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Tax rate |
Married filing jointly or Qualified Widow(er) |
Single |
Head of household |
Married filing separately |
| 10% |
$0 - 15,650 | $0 - 7,825 | $0 - $11,200 | $0 - 7,825 |
| 15% |
$15,651- 63,700 | $7,826- 31,850 | $11,201- 42,650 | $7,826- 31,850 |
| 25% |
$63,701- 128,500 | $31,851- 77,100 | $42,651- 110,100 | $31,851- 64,250 |
| 28% |
$128,501- 195,850 | $77,101- 160,850 | $110,101- 178,350 | $64,251- 97,925 |
| 33% |
$195,851- 349,700 | $160,851- 349,700 | $178,351- 349,700 | $97,926- 174,850 |
| 35% |
over $349,700 | over $349,700 | over $349,700 | over $174,850 |