|
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
|
|
Free Initial
Consultation
