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Federal Tax Summary Information

 

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Federal Tax Summary Info

 

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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

Inclusion Amount For Leased Autos (smbiz.com)

 

Federal Income Tax Schedules

 

IRS Individual Tax Table

2003 Individual Tax Rate Schedule
2000-2004 Corporate Tax Rates
2003-2004 Estates and Trusts Tax Rates

 

Social Security and Self-Employment Tax

 

 

2004  2005
FICA Taxable Maximum Earnings $87,900 $90,000
FICA Tax Rate On Employee 6.2% 6.2%
Tax on Self-Employment Earnings 12.4% 12.4%
Medicare Taxable Maximum Earnings No Limit No Limit
Medicare Tax Rate on Employee 1.45% 1.45%
Medicare Tax on Self-Employment Earnings 2.9% 2.9%
Social Security Earnings Cap - Recipients Under 65  $11,640 $12,000
Social Security Earnings Cap - Recipients 65-69 * No Limit No Limit
Social Security Earnings Cap - Recipients Over 70  No Limit No Limit
Income Limit Before 50% Benefits Taxed, Single $25,000 $25,000
Income Limit Before 50% Benefits Taxed, Joint $32,000 $32,000
Income Limit Before 85% Benefits Taxed, Single $34,000 $34,000
Income Limit Before 85% Benefits Taxed, Joint $44,000 $44,000
For More Social Security Limits : SSA.gov
* 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