According to CCH's estimation on income ranges for each 2001 tax bracket, both single and married taxpayers will pay a bit less to the Internal Revenue Service to make up for the impact of inflation.

Although inflation has been low, the tax effects of the annual adjustment will be greater for 2001 than they have been for the last two years, said CCH. Many people will end up ahead by the time their 2001 taxes are due on April 15, 2002. And most people can realize their savings through their withholding and estimated taxes beginning early in 2001, the company added.

Based on the projections, some typical examples of the decreases for the 2001 tax year include: a married couple filing jointly with total taxable income of $50,000 could pay $176 less in income taxes in 2001; a single filer with taxable income of $50,000 will contribute $104 less in 2001. 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, CCH explained.

Also, the standard deduction and personal exemption amounts are projected to increase as well for 2001, said CCH. These increases can produce lower taxes by lowering the taxpayer's taxable income.

-- SmartPros News Staff

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