Personal Exemptions – The personal exemption for each qualifying dependent increased by $100 for 2002.

The exemption is phased out by 2% for each $2,500 ($1,250 for married filing separately) by which income is over:

Standard Deductions – The new standard deductions for those who do not itemize are as follows:

If 65 or over and/or blind add:

Itemized Deduction Phaseout – Deductions are reduced by 3% of every dollar of Adjusted Gross Income (AGI) over $137,300 ($68,650 if married filing separately) up to a maximum phaseout of 80% of your itemized deductions. Your medical expenses, investment interest, casualty losses and gambling losses are excluded.

Standard Mileage Rates – The standard mileage rates for 2002 are:

Social Security Tax Rates –

• The Social Security/Medicare tax rates remain unchanged for 2002 at 7.65% and 15.3% for employed and self-employed, respectively. The Earnings base increases from $80,400 in 2001 to $84,900 in 2002.
  

Earning Limits:

• Recipients age 65 and over can earn an unlimited amount in 2002 without having benefits reduced.
• Individuals age 62 to 64 can earn $11,280 in 2002, up $600 over 2001, before benefits are reduced. Earnings over $11,280 result in lost benefits of $1.00 for every $2.00 earned.