The following
represents our "quick reference" section for those rates and amounts you need on
specific occasions. Please remember that tax laws (and these amounts) are
continually changing and this listing is only to be used as a starting reference point.
If you need professional advice or further elaboration on a number listed below,
please call our office.
Individual
Deductions and Credits
2004
2005
Standard Deduction, Joint Return And
Surviving Spouse
$9,700
$10,000
Standard Deduction, Head of Household
$7,150
$7,300
Standard Deduction, Single
$4,850
$5,000
Standard Deduction, Married Filing
Separate
$4,850
$5,000
Personal exemption
$3,100
$3,200
Taxpayer Claimed As A Dependent
$800
$800
Additional Standard Deduction For
Blindness or Age, Single
$1,200
$1,250
Additional Standard Deduction For
Blindness or Age, Married
$950
$1,000
Itemized Deduction Income Threshold (deductions
reduced by 3% of amount your adjusted gross income exceeds
threshold)
$142,700
$144,950
Maximum IRA Deduction
$3,000
$4,000
Additional IRA Deduction For Age 50
and Over
$500
$500
Hope Scholarship Credit Per Eligible
Student (100% of first $1,000 in
eligible expenses and 50% of next $1,000)
$1,500
$1,500
Lifetime Learning Credit
(20%
of first $5,000 in expenses)
$1,000
$1,000
Maximum Contribution To Education
Savings Account (previously
Education IRA)
$2,000
$2,000
Maximum Child Tax Credit
$1,000
$1,000
Business
Deductions
2004
2005
Section 179 Deduction
$102,000
$105,000
Dividend
Tax Rates
2004
2005
Tax Rate
On Dividends Received From U.S. And Some Qualified Foreign Companies
15%
15%
Tax Rate On Dividends For
Low Income Taxpayers (10% and 15% Brackets)
5%
5%
Auto
And Transportation Allowances
2004
2005
Business Mileage Rate**
.375
**.405
Medical/Moving Mileage Rate
.14
.15
Charity Mileage Rate
.14
.14
Vehicle/Transit Pass Limit
$100
$105
Qualified Parking Limit
$195
$200
**The mileage
rate was raised to .485 effective September 1, 2005 through December
31, 2005
* While the earnings cap
was dropped for persons over 65 as of January 1, 2000, there remains
an earnings cap of ($31,080 in 2004 and $31,800 in 2005) during the
retiree's 65th year for those months prior to the actual birthday.
Retirement
Plan Amounts
2004
2005
Limit on 401(k) Elective Deferrals
$13,000
$14,000
Allowable Catch-Up Contribution For
Employees 50 and Over
$3,000
$4,000
Compensation Limit Under 401(a)(17),
404(I) and 408(k)(3)(C)
$205,000
$210,000
Deferral Limit Under A SIMPLE Plan
$9,000
$10,000
SIMPLE Plan Deferral Limit - Age 50
$10,500
$12,000
Limit on Annual Benefit From A Defined
Benefit Plan
$165,000
$170,000
Earnings Definition of Highly
Compensated Employee
$90,000
$95,000
Limit on Deductible Contributions to
Defined Contribution Plans
$41,000
$42,000
Compensation Limit To Trigger a SEP
$450
$450
Estate
And Gift Amounts
2004
2005
Annual Gift Exclusion
$11,000
$11,000
Lifetime Gift Exclusion
$1 million
$1 million
Estate Tax Exclusion
$1.5 million
$1.5 million
10 Wright Street
Jasper, AL 35501
Ph
(205) 221-4283 (800)
549-8636
Fx
(205) 221-4899
