For 2003 and 2004, the standard deduction for married Individuals filing jointly is increased to twice that of a single filer (from $7,950 scheduled under prior law to $9,500). The standard deduction for married couples reverts to the EGTRRA levels in 2005 and pre-EGTRRA level in 2011.

Years	Standard Deduction for Married Individuals Filing Jointly as Percentage of Standard Deduction for Single Taxpayers
Prior Law (2003)	167%
Under the Act
2003-2004	200%
2005	174%
2006	184%
2007	187%
2008	190%
2009-2010	200%
2011 and later	167%

The standard deduction (for all taxpayers) will continue to be indexed for inflation in future years.

For 2003 and 2004, the upper limit of the 15% income tax bracket for married individuals filing jointly is increased to twice that for a single taxpayer. For 2003, the 15% tax bracket for married couples is increased from $47,450 to $56,800. The 15% tax bracket for married couples reverts to EGTRRA levels in 2005 and pre-EGTRRA level in 2011.

Years	End Point of 15% Tax Bracket for Married Individuals Filing Jointly as Percentage of End Point of 15% Tax Bracket for Single Taxpayers
Prior Law (2003)	167%
Under the Act
2003-2004	200%
2005	180%
2006	187%
2007	193%
2008-2010	200%
2011 and later	167%

KPMG Observation The standard deduction and the 15% tax bracket for married couples will fluctuate over the next eight years. Taxpayers making estimated tax payments need to take these fluctuations into account in calculating the amount of their payments.

* All section references are to the Internal Revenue Code of 1986, as amended.
$ = USD
% = percent