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2006 Tax Facts at a Glance |
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ESTIMATED TAX PAYMENTS FOR THE 2006 CALENDAR YEAR
Prior-year safe harbor for estimated taxes of high-income taxpayer (over $150,000 if married, $75,000 if single)...........................................110% of your 2005 tax liability
1st Quarterly Tax Estimate due date................................................April 15, 2007
2nd Quarterly Tax Estimate due date...............................................June 15, 2007
3rd Quarterly Tax Estimate due date...............................................September 15, 2007
4th Quarterly Tax Estimate due date................................................January 16, 2008
CAPITAL GAINS TAX RATES
Maximum capital gains tax rate for taxpayers in the 10% or 15% bracket...................5%
Maximum capital gains tax rate for taxpayers above the 15% bracket......................15%
PERSONAL EXEMPTIONS
Current year personal exemption.....................................................................$3,300
Additional exemption for housing individuals displaced by hurricane Katrina .....$500
AMT EXEMPTION
Single and head household...........................................................................$42,500
Married filing jointly.....................................................................................$62,550
Married filing separaretely............................................................................$31,275
STANDARD DEDUCTIONS
- Under 65 - Married Filing Jointly....................................................................$10,300
- Under 65 - Head of Household......................................................................$7,550
- Under 65 - Single........................................................................................$5,150
- Under 65 - Married Filing Separately.............................................................$5,150
- 65 & Over - Married Filing Jointly (both over 65)...........................................$12,300
- 65 & Over - Married Filing Jointly (one over 65)............................................$11,300
- 65 & Over - Head of Household....................................................................$8,800
- 65 & Over - Single......................................................................................$6,400
- 65 & Over - Married Filing Separately...........................................................$6,150
EQUIPMENT EXPENSE DEDUCTION
- Business equipment expense (Sec. 179) deduction.........................................$108,000
- Depreciation deduction for electric vehicles...................................................8,980
ELECTRIC AND CLEAN-FUEL VEHICLES
- For 2006, the list of vehicles that are qualified hybrid vehicles for the Alternative Motor Vehicle Credit has been expanded. The tax credit for hybrid vehicles applies for vehicles purchased on or after January 1, 2006, and could be as much as $ 3,400 for those who purchased the most fuel-efficient vehicles.
For more specific information on deduction for electric vehicles click here
STANDARD MILEAGE RATES - 2007
- Standard mileage rate for business driving........................................48.5 cents per mile
- Standard mileage rate for medical and moving expense deductions.......20 cents per mile
- Standard mileage rate for charitable driving........................................14 cents per mile
STANDARD MILEAGE RATES - 2006
- Standard mileage rate for business driving......................................44.5 cents per mile
- Standard mileage rate for medical and moving expense deduction.......18 cents per mile
- Standard mileage rate for charitable driving
(a) General.........................................................................................14 cents per mile
(b) Hurricane Katrina deduction............................................................32 cents per mile
(c) Hurricane Katrina reimbursement.................................................44.5 cents per mile
EDUCATION COSTS
- Maximum higher education student loan interest deduction.................................$2,500
- Maximum "Hope Scholarship" Tax Credit..........................................................$1,650
- Maximum "Lifetime Learning" Tax Credit..........................................................$2,000
- Phase-out income for education tax credits if filing married............. $90,000 - 110,000
- Phase-out income for education tax credits if filing single...................$45,000 - 55,000
EMPLOYMENT TAXES
- Social Security Wage Limit...........................................................................$94,200
- Social Security (FICA) tax rate..........................................................................6.2%
- Medicare tax rate...........................................................................................1.45%
- Self-employment tax rate...............................................................................15.3%
- Self-employed taxpayer's health insurance deduction.........................................100%
RETIREMENT CONTRIBUTIONS
- Maximum IRA contribution .................................................$4,000 ($5,000 over age 50)
- Maximum Roth IRA contribution..........................................$4,000 ($5,000 over age 50)
- Maximum contribution to SIMPLE IRA plan...........$10,000 if under age 50, $12,500 if 50 or older
- Maximum contribution to 401(k) plan........$15,000 if under age 50, $20,000 if 50 or older
- Maximum defined contribution plan (formerly keough)..................................$44,000
AGI PHASE-OUT INCOME FOR IRA CONTRIBUTIONS WHEN ACTIVE PARTICIPANT IN ANOTHER RETIREMENT PLAN
- Phase-out income when filing "married filing joint".................................$75,000 - $85,000
- Phase-out income when filing "single" or "head of household".................$50,000 - $60,000
- Phase-out income when filing "married filing separate"..................................$0 - $10,000
AGI PHASE-OUT INCOME FOR IRA CONTRIBUTIONS WHEN NOT AN ACTIVE PARTICIPANT BUT SPOUSE IS
- Phase-out income for taxpayer filing "married filing joint"...................$150,000 - $160,000
- Phase-out income for taxpayer filing "married filing separate"......................$0 - $10,000
AGI PHASE-OUT INCOME FOR ROTH IRA CONTRIBUTIONS
- Phase out income for taxpayer filing "married filing joint"..................$150,000 - $160,000
- Phase-out income for taxpayer filing "single"....................................$ 95,000 - $110.000
- Phase-out income for taxpayer filing "married filing separate".....................$0 - $10,000
SOCIAL SECURITY BENEFITS
- Benefits reduction if under age 65 plus 2 months..................$1 for every $2 over $12,000
- Benefits reduction if under age 65.......................................$1 for every $3 over $31,800
- Benefits reduction if age 65 plus 8 months and over......................................no reduction
- Phase-out income of tax-free social security benefits if married............................$32,000
- Phase-out income of tax-free social security benefits if single...............................$25,000
ESTATE TAX EXEMPTION
- Estate tax exclusion................................................................................$2,000,000
- Annual gifting exclusion...............................................................................$12,000
OTHER MISCELLANEOUS TAX FACTS
- Child's unearned income maximum before "kiddie tax" applies....$1,700
- Child's standard deduction with no earned income.........................$850
- Child's standard deduction with earned income.............................$300 plus earned income
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