Inna Shapiro (ishapiro@nber.org)
Daniel Feenberg (feenberg@nber.org)

The Notches in Federal Law 1960-1999
Federal		Years	The Reason for Notches	max affected AGI/hy
		1982+	cash gifts>0 and deduc>zbr ,then we've got a notch because of non-itemizer's charitable deduction
		1965-1986	Tax computation using Income Averaging	Aver. income=<$3k- no tax on income averaging
The Notches in State Law 1977-1999
State	id	Years	The Reason for Notches	max affected AGI/hy
Alabama	1	all years	FFI
Arizona	3	1995+	Family credit	AGI<$20k for joint and head of household AGI<$10k for single and separate return
	3	1990,1991	Renters Credit	AGI<$25k
	3	all years	FFI
	3	all years	Child Care Deduction only if you itemize Arizona deductions	hy<$6k
Arkansas	4	1991+	Low Income Tax Table	taxinc<$16.2k
	4	all years	FFI
California	5	1991+	The exemption credit depends on federal AGI .	$100k*data(7)*aif for single and joint or $150k*aif for head of household
	5	1985+	Low Income Credit	AGI<$17.7k*aif
	5	1990-1992	Renters Credit	AGI<$42,476
	5	all years	FFI
Colorado	6	1977-1986	Food Tax Credit	the food income depends on AGI and the number of exemptions
	6	1997+	State Sales Tax Refund Credit	$15k ,$100k of fed. AGI are phase-outs
	6	all years	FFI
Connecticut	7	1991+	Exemptions depend on AGI	AGI<$48k. exemp=$24k $48k<AGI<=$71k exemps are $1k decreased on each $1k AGI AGI>$71k. exemp= 0
	7	1991+	Personal Tax Credit	1991-1994 joint AGI<$96k single AGI<$48k head hhold AGI<$74k 1995+ joint AGI<$100.5k single AGIi<$52.5k head hhold AGI<$78.5k
	7	1977-1991	The Rate for dividend and int. income tax depends on AGI	$20k,$22k,$24k,$28k, $30k,$35k,$40k,$50k, $100k are phase-outs
Delaware	8	all years	Pension exclusion can reduce agi on $2k for each taxpayer.	AGI<$10k*data(7)& earnings plus pension<$2.5k*data(7)
	8	all years	FFI
District of Columbia	9	all years	Property Tax Credit	hy<$20k
	9	1987+	Low Income Tax Credit	federal tax=0
	9	all years	FFI
Georgia	11	all years	FFI	Taxpayers can get state itemize deductions
	11	1982+	Retirement deduction	age over 65
Hawaii	12	all years	FFI
	12	77 - 94	The Excise Credit(repealed in 1995)	1977-87 AGI<$20k 1988-94 AGI<$30k
	12	all years	Renter's credit	1977-1988 AGI<$20k 1989 + AGI<$30k
	12	1999+	Low Income Refundable Credit	AGI<$20k
Indiana	15	all years	Credit for elder people	77-80 hy<$15k 81+ AGI<$10k
	15	1999	Earned Income Credit	1999 total income<$12k
Iowa	16	1987+	Tax Reduction for income less than $9000 for single taxpayers
	16	all years	FFI
	16	1990-1992 1993+	Child Credit	federal AGI<$50k federal AGI<$40k
Kansas	17	all years	Kansas Food Sales Tax Refund	year<=1985 hy<=$10k 1985<year<1998 hy<=$13k year>1997 hy<=$25k
	17	1997+	Kansas property tax credit	hy <$25k
	17	1977-1987	Kansas Child Care Credit	AGI<$14k
	17	all years	FFI
Kentucky	18	1990+	Low Income Credit	AGI<$25k.
	18	all years	FFI
Louisiana	19	all years	deductions for aged, blind and with dependents
Maine	20	1997+	No Tax Status	Taxable Income=< $2k
	20	1977-1987	Property Tax Credit	hy<$9.2k
	20	1988	Property Tax Credit	2 age exempt hy<$9.2k 1 age exempt hy<$7.4k
	20	1988	Standard Deduction	single AGI<$25k joint AGI<$50k head hhold AGI<$37.5k
Maryland	21	1987+	FFI
Massachusetts	22	1984	$60k is a phase-out for using a surtax in a-income and b-income
	22	1984+	Sales Tax Credit	AGI<$21k
Michigan	23	1980+	Property Tax Credit	hy<$6k for age exempt
	23	1982+	Property Tax Credit	hy<$82650
Minnesota	24	1993+	Property Tax Credit	hy<$60k*inflation factor
Mississippi	25	all years	FFI
Missouri	26		Property tax credit . Formula should be computed on the midpoints of r25 brackets for the purposes of the table : ptax = (aint(ptax/25.)*25.)+12.5 But we gave up of this for smoothing of results.	for aged people with small income
Montana	27	1981-1982, 1983 +	Elderly Property Tax Credit	1981-1982 any hy 1983+ hy<=$35k
New Jersey	31	all years	No Tax Status	1977-1993 AGI<=$3k 1994+ AGI<=$7.5k
	31	1990-1995	Home property rebate	Phase outs for AGI: $35k,$70k, $100k.
	31	all years	retired deduction	earnings plus pension <$3k and aged or blind
	31	1985-1989	property tax rebate	floor =$3250;$2600, $1857 for owners
	31	1985-1989	rebate	taxinc<$50K
New Mexico	32	1990+	Low Income Food Credit	agi<=$16k
	32	all years	Low Income Comprehensive Tax Rebate	hy<$22k
	32	1985-86 1987+	Elder Deduction	AGI<$45k AGI<$51k
	32	all years	FFI
New York	33	all years	Household credit	1978-1985 hy<$25k 1986+ hy<$32k
	33	1985-1986	Family adjustment only for married people	AGI<$36k in 1985 AGI<$38k in 1986
	33	1978+	Property Tax Credit	age over 65
North Carolina	34	1986-88	Low Income Credit	AGI = $15k is a phase-out for taking this credit for single AGI = $45k for joint
	34	1990+	Child Tax Credit	for single fed AGI<$60k for joint fed AGI<$100k for head household fed AGI<$80k
Ohio	36		Joint credit	joint
Oklahoma	37	all years	Property Tax Relief	age over 65 1977-79 hy<$6.6k 1980-83 hy<$7.2k 1984-88 hy<$8.5k 1989-96 hy<$10.0k 1997-98 hy<$12.0k
	37	all years	FFI
Oregon	38	all years	FFI
	38	-1986	minimum tax	preferences>$10k or preferences<$3k & AGI>$20k
Pennsylvania	39	all years	Forgiveness Credit
Rhode Island	40	all years	Property Tax Credit	1983 phaseout hy=$8K 84-96 hy=$12.5k 97 hy=$18k 98 hy=$25k
South Carolina	41	1977- 1983	No Tax Status for elder people	0 dependents AGI<$2.8k dependents AGI<$4k
	41	all years	FFI
Tennessee	43	1977-1985	No Tax Status	age over 65 joint hy< =$10k not joint hy< =$ 6k blind for any hy
Utah	45	all years	FFI
Vermont	46	all years	Property Tax Credit	age over 65
	46	1977-1990	Low Income Credit	hy <$7k
Virginia	47	1979-86 1987 +	No Tax Status	1979-86 AGI< = $3k 1987+ single AGI <= $5k married AGI<=$8k
West Virginia	49	1983-1985	Surtax	Taxable income>$10k*data(7)
	49	all years	FFI
Wisconsin	50	1977-1978 1979+	low income allowance	AGI<$9,669 AGI<$12k
	50	all years	No Tax Status	hy<$9,948

Abbreviations

deduc - deductions

zbr - zero bracket amount

AGI - adjusted gross income

hy - household income(AGI plus untaxed transfers, Social Security and Unemployment Insurance in TAXSIM model)

FFI - following federal itemization

taxinc - taxable income

data(7) - number of exemptions

data(8) - number of dependent exemptions

aif - inflation factor