Small Business Taxes & Management

Corporate and Individual Tax Data

Small Business Taxes & Management--Copyright 1998-2009, A/N Group, Inc.

CAUTION--This page contains data for several years. Please watch all dates carefully.

Contents

Corporate Income Tax Rates--Including rates for personal service corporations, personal holding companies, and accumulated earnings tax.

Miscellaneous Business Data--Section 179 expense limits

2010--Individual Income Tax Rates, Other Data

2009--Individual Income Tax Rates, Other Data

Prior Years--

2008--Individual Income Tax Rates, Other Data

2007--Individual Income Tax Rates, Other Data

2006--Individual Income Tax Rates, Other Data

 

Corporate Income Tax Rates--2010, 2009, 2008, 2007, 2006, 2005

       Taxable income over     Not over      Tax rate

          $         0        $    50,000        15%
               50,000             75,000        25%
               75,000            100,000        34%
              100,000            335,000        39%
              335,000         10,000,000        34%
           10,000,000         15,000,000        35%
           15,000,000         18,333,333        38%
           18,333,333         ..........        35%

Personal Service Corporations

Personal service corporations are subject to a flat tax of 35% regardless of their income.

Personal Holding Company

Personal holding companies are subject to an additional tax at 15% (higher in 2002 and prior years) on any undistributed personal holding company income. (Code Sec. 541)

 

Accumulated Earnings Tax

In addition to the regular tax, a corporation may be liable for an additional tax at 15% (higher in 2002 and prior years) on accumulated taxable income in excess of $250,000 ($150,000 for personal service corporations). (Code Sec. 531)

 

Miscellaneous Business Data

Maximum Section 179 Expense Deduction

           2010          2009          2008          2007          2006          2005            
         $134,000      $250,000      $250,000      $125,000      $108,000      $105,000      

Phaseout--$530,000 for 2010; $800,000 for 2009; $800,000 for 2008; $500,000 for 2007; $430,000 for 2006; $420,000 for 2005.

 

Tax Rate Schedules for Individuals and Trusts--2010

Single Taxpayers--2010

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  8,375        $    0.00   10       $      0
   8,375       34,000           837.50   15          8,375
  34,000       82,400         4,681.25   25         34,000
  82,400      171,850        16,781.25   28         82,400
 171,850      373,650        41,827.25   33        171,850
 373,650      .......       108,421.25   35        373,650
  

Married Individuals Filing Joint and Surviving Spouses--2010

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 16,750        $     0.00  10       $      0
  16,750       68,000          1,675.00  15         16,750
  68,000      137,300          9,362.50  25         68,000
 137,300      209,250         26,687.50  28        137,300
 209,250      373,650         46,833.50  33        209,250
 373,650      .......        101,085.50  35        373,650
 

Married Individuals Filing Separate--2010

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  8,375        $    0.00   10       $      0
   8,375       34,000           837.50   15          8,375
  34,000       68,650         4,681.25   25         34,000
  68,650      104,625        13,343.75   28         68,650
 104,625      186,825        23,416.75   33        104,625
 186,825      .......        50,542.75   35        186,825


Heads Of Households--2010

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 11,950        $    0.00   10       $      0
  11,950       45,550         1,195.00   15         11,950
  45,550      117,650         6,235.00   25         45,550
 117,650      190,550        24,260.00   28        117,650
 190,550      373,650        44,672.00   33        190,550
 373,650      .......       105,095.00   35        373,650



Estates And Trusts--2010

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

  $    0       $2,300             0.00   15         $    0
   2,300        5,350        $  345.00   25          2,300
   5,350        8,200         1,107.50   28          5,350
   8,200       11,200         1,905.50   33          8,200
  11,200        .....         2,895.50   35         11,200

Long-Term Capital Gains and Qualifying Dividends--2010

For taxpayers in the 10% or 15% bracket--0%

For taxpayers in higher brackets--15%

Tax on unrecaptured Sec. 1250 gain--25%

Capital gain rate on collectibles--28%

 

Standard Deduction--2010

Filing Status                       Standard Deduction

Married filing joint and 
surviving spouses                       $11,400

Heads of Household                        8,400
   
Single individuals                        5,700

Married, filing separate                  5,700

Dependent's Standard Deduction--No more than the greater of $950 or $300 plus the individual's earned income.

Additional standard deduction for aged and blind--$1,100 each ($1,400 if individual is unmarried and not surviving spouse)

 

Personal Exemption--2010

Amount--$3,650

No phaseout of personal exemption in 2010.

 

American Opportunity Tax Credit (Hope Credit)--2010

100% of first $2,000 of education expenses; 25% of expenses between $2,000 and $4,000 (maximum $2,500)

Phaseout begins at modified adjusted gross income of $160,000 joint return; $80,000 all others.

Credit completely phased out at $180,000 ($90,000).

 

Lifetime Learning Credits--2010

Phaseout begins at modified adjusted gross income of $100,000 joint return; $50,000 all others.

 

Interest on Education Loans--2010

Maximum interest deduction--$2,500

Modified adjusted gross income phaseout range--Married, joint, $120,000--$150,000; all other filing status, $60,000--$75,000

 

Savings Bond/Higher Education Expense Exclusion--2010

Modified adjusted gross income phaseout--married, joint, $105,100--$135,100; all other filing status, $70,100--$85,100

 

Qualified Transportation Fringe Benefit Exclusion--2010

Commuter highway vehicle and transit pass--$230

Qualified parking--$230

 

Earned Income Tax Credit (EITC)--2010

                                                   Number of Qualifying Children
Item                                         One    Two or More    Three or More    None

Earned Income Amount                       $ 8,970    $12,590        $12,950     $ 5,980
Maximum Amount of Credit                     3,050      5,036          5,666         457
Threshold Phaseout (single, surviving
  spouse or head of household)              16,450     16,450         16,450       7,480
Completed Phaseout (single, surviving 
  spouse or head of household)              35,535     40,363         43,352      13,460
Threshold Phaseout (married, joint)         21,460     21,460         21,460      12,490
Completed Phaseout (married, joint)         40,545     45,373         48,362      18,470
Excessive Investment Income for Earned Income Tax Credit--$3,100

 

Miscellaneous--2010

Annual Exclusion for Gifts--$13,000

Annual Exclusion for Gifts to Spouse not a Citizen--$134,000

Notice of Large Gifts Received from Foreign Persons--$14,165

Interest on Certain Portion of Estate Tax Payable in Installments (Sec. 6166; 2% portion)--$1,340,000

Valuation of Qualified Real Property in Decendent's Gross Estate (Sec. 2032A)--$1,000,000

Unearned Income of Minor Child (Kiddie Tax)--$950 ($9,500 for parental election)

Foreign Earned Income Exclusion--$91,500

Minor Child subject to Kiddie Tax--up to age 18 or full-time student over 18 with earned income no more than 1/2 support under age 24.

 

Adoption Expenses--2010

Maximum credit for child with special needs--$12,170

Maximum credit, other adoptions--$12,170

Other adoptions, gross income exclusion, qualified expenses up to $12,170

Phaseout range, modified adjusted gross income--$182,520 to $222,520

 

Persons Against Which a Federal Tax Lien is Not Valid--2010

Purchasers in a casual sale for less than $1,380 or a mechanic's lienor that repair or improved certain residential property if the contract price is not more than $6,890.

 

Property Exempt from Levy--2010

Property exempt from levy under Sec. 6334(a)(2) cannot exceed $8,520. Property exempt from levy under Sec. 6334(a)(3) (books and tools for trade or business) cannot exceed $4,120.

 

Eligible Long-Term Care Premiums--2010


Attained Age Before the Close of the Tax Year   Limitation on Premiums

     40 or less                                        $  330
     More than 40 but not more than 50                    620
     More than 50 but not more than 60                  1,230
     More than 60 but not more than 70                  3,290
     More than 70                                       4,110

Social Security--2010

OASDI Wage Base--$106,800

Quarter of coverage--$1,090

 

Health Savings Accounts--2010

Maximum annual HSA contributions deductible--$3,050 for individual; $6,150 for family coverage

Catch-up contributions for individuals 55 or older (but less than 65) is $1,000 (pro rate for year).

Deductible Amounts that define High Deductible Plan:

                Annual Deductible   Deductibles, Co-Payments and other Amounts 
                  Not Less Than           but not Premiums Not to Exceed

Self Only            $1,200                         $ 5,950

Family Coverage       2,400                          11,900


 

Tax Rate Schedules for Individuals and Trusts--2009

Single Taxpayers--2009

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  8,350        $    0.00   10       $      0
   8,350       33,950           835.00   15          8,350
  33,950       82,250         4,675.00   25         33,950
  82,250      171,550        16,750.00   28         82,250
 171,550      372,950        41,754.00   33        171,550
 372,950      .......       108,216.00   35        372,950
  

Married Individuals Filing Joint and Surviving Spouses--2009

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 16,700        $     0.00  10       $      0
  16,700       67,900          1,670.00  15         16,700
  67,900      137,050          9,350.00  25         67,900
 137,050      208,850         26,637.50  28        137,050
 208,850      372,950         46,741.50  33        208,850
 372,950      .......        100,894.50  35        372,950
 

Married Individuals Filing Separate--2009

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  8,350        $    0.00   10       $      0
   8,350       33,950           835.00   15          8,350
  33,950       68,525         4,675.00   25         33,950
  68,525      104,425        13,318.75   28         68,525
 104,425      186,475        23,370.75   33        104,425
 186,475      .......        50,447.25   35        186,475


Heads Of Households--2009

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 11,950        $    0.00   10       $      0
  11,950       45,500         1,195.00   15         11,950
  45,500      117,450         6,227.50   25         45,500
 117,450      190,200        24,215.00   28        117,450
 190,200      372,950        44,585.00   33        190,200
 372,950      .......       104,892.50   35        372,950



Estates And Trusts--2009

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

  $    0       $2,300             0.00   15         $    0
   2,300        5,350        $  345.00   25          2,300
   5,350        8,200         1,107.50   28          5,350
   8,200       11,150         1,905.50   33          8,200
  11,150        .....         2,879.00   35         11,150

Long-Term Capital Gains and Qualifying Dividends--2009

For taxpayers in the 10% or 15% bracket--0%

For taxpayers in higher brackets--15%

Tax on unrecaptured Sec. 1250 gain--25%

Capital gain rate on collectibles--28%

 

Standard Deduction--2009

Filing Status                       Standard Deduction

Married filing joint and 
surviving spouses                       $11,400

Heads of Household                        8,350
   
Single individuals                        5,700

Married, filing separate                  5,700

Dependent's Standard Deduction--No more than the greater of $950 or $300 plus the individual's earned income.

Additional standard deduction for aged and blind--$1,100 each ($1,400 if individual is unmarried and not surviving spouse)

Additional standard deduction for real estate taxes--$500 max. ($1,000 if married filing joint) if not itemizing.

Additional standard deduction for sales tax paid on new motor vehicle purchased on or after February 17, 2009 and in or before December 31, 2009. Amount phased out for taxpayers with AGI between $125,000 ($250,000 married, joint) and $135,000 ($260,000 married, joint).

Additional standard deduction for casualty losses in federally declared disaster area.

 

Itemized Deduction Phaseout--2009

All filing status but married separate--$166,800; Married, separate--$83,400

 

Personal Exemption--2009

Amount--$3,650

Phaseout of Personal Exemption--

Filing Status                                       AGI Begin Phaseout      AGI Maximum Phaseout

Married, filing joint/surviving spouse                    $250,200                 $372,700

Heads of household                                         208,500                  331,000

Single                                                     166,800                  289,300

Married, filing separate                                   125,100                  186,350

For taxable years beginning in 2009 the exemption amount for taxpayers with AGI in excess of the maximum phaseout amount is $2,433.

 

Alternative Minimum Tax--2009


First $175,000 ($87,500 married, separate) of Alternative Minimum Taxable Income       26%

Over $175,000 of AMTI (Alternative Minimum Taxable Income)                             28%

Exemptions:

Joint Filers                      $70,950 

Married, separate                 $35,475

Single (and head of household)    $46,700  

Estates & Trusts                  $22,500 

Child subject to Kiddie Tax        $6,700 (plus child's earned income)


Exemption Phaseout:

25% of amount AMTI exceeds:

$150,000 for married, joint and surviving spouses

$112,500 single (and head of household)

$75,000 married, filing separate


American Opportunity Tax Credit (Hope Credit)--2009

100% of first $2,000 of education expenses; 25% of expenses between $2,000 and $4,000 (maximum $2,500)

Phaseout begins at modified adjusted gross income of $160,000 joint return; $80,000 all others.

Credit completely phased out at $180,000 ($90,000).

 

Lifetime Learning Credits--2009

Phaseout begins at modified adjusted gross income of $100,000 joint return; $50,000 all others.

 

Interest on Education Loans--2009

Maximum interest deduction--$2,500

Modified adjusted gross income phaseout range--Married, joint, $120,000--$150,000; all other filing status, $60,000--$75,000

 

Savings Bond/Higher Education Expense Exclusion--2009

Modified adjusted gross income phaseout--married, joint, $104,900--$134,900; all other filing status, $69,950--$84,950

 

Qualified Transportation Fringe Benefit Exclusion--2009

Commuter highway vehicle and transit pass 1/09-2/09--$120

Commuter highway vehicle and transit pass 2/09-12/09--$230

Qualified parking--$230

 

Miscellaneous--2009

Annual Exclusion for Gifts--$13,000

Annual Exclusion for Gifts to Spouse not a Citizen--$133,000

Notice of Large Gifts Received from Foreign Persons--$14,139

Interest on Certain Portion of Estate Tax Payable in Installments (Sec. 6166; 2% portion)--$1,330,000

Valuation of Qualified Real Property in Decendent's Gross Estate (Sec. 2032A)--$1,000,000

Unearned Income of Minor Child (Kiddie Tax)--$950 ($9,500 for parental election)

Foreign Earned Income Exclusion--$91,400

Minor Child subject to Kiddie Tax--up to age 18 or full-time student over 18 with earned income no more than 1/2 support under age 24.

 

Adoption Expenses--2009

Maximum credit for child with special needs--$12,150

Maximum credit, other adoptions--$12,150

Other adoptions, gross income exclusion, qualified expenses up to $12,150

Phaseout range, modified adjusted gross income--$182,180 to $222,180

 

Persons Against Which a Federal Tax Lien is Not Valid--2009

Purchasers in a casual sale for less than $1,380 or a mechanic's lienor that repair or improved certain residential property if the contract price is not more than $6,880.

 

Eligible Long-Term Care Premiums--2009


Attained Age Before the Close of the Tax Year   Limitation on Premiums

     40 or less                                        $  320
     More than 40 but not more than 50                    600
     More than 50 but not more than 60                  1,190
     More than 60 but not more than 70                  3,180
     More than 70                                       3,980

Social Security--2009

OASDI Wage Base--$106,800

Household employee cash wages threshold--$1,700

Quarter of coverage--$1,090

 

Health Savings Accounts--2009

Maximum annual HSA contributions deductible--$3,000 for individual; $5,950 for family coverage

Catch-up contributions for individuals 55 or older (but less than 65) is $1,000 (pro rate for year).

Deductible Amounts that define High Deductible Plan:

                Annual Deductible   Deductibles, Co-Payments and other Amounts 
                  Not Less Than           but not Premiums Not to Exceed

Self Only            $1,150                         $ 5,800

Family Coverage       2,300                          11,600

Sales Tax Deduction for Autos--2009

Sales tax on new vehicles purchased after February 16, 2009 is deductible. Only the first $49,500 of vehicle cost qualifies. Deductions is phased out for AGI between $250,000 and $260,000 (married, joint) or $125,000 and $135,000 (single).

 

Tax Rate Schedules for Individuals and Trusts--2008

Single Taxpayers--2008

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  8,025        $    0.00   10       $      0
   8,025       32,550           802.50   15          8,025
  32,550       78,850         4,481.25   25         32,550
  78,850      164,550        16,056.25   28         78,850
 164,550      357,700        40,052.25   33        164,550
 357,700      .......       103,791.75   35        357,700
  

Married Individuals Filing Joint and Surviving Spouses--2008

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 16,050        $     0.00  10       $      0
  16,050       65,100          1,605.00  15         16,050
  65,100      131,450          8,962.50  25         65,100
 131,450      200,300         25,550.00  28        131,450
 200,300      357,700         44,828.00  33        200,300
 357,700      .......         96,770.00  35        357,700
 

Married Individuals Filing Separate--2008

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  8,025        $    0.00   10       $      0
   8,025       32,550           802.50   15          8,025
  32,550       65,725         4,481.25   25         32,550
  65,725      100,150        12,775.00   28         65,725
 100,150      178,850        22,414.00   33        100,150
 178,850      .......        48,385.00   35        178,850


Heads Of Households--2008

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 11,450        $    0.00   10       $      0
  11,450       43,650         1,145.00   15         11,450
  43,650      112,650         5,975.00   25         43,650
 112,650      182,400        23,225.00   28        112,650
 182,400      357,700        42,755.00   33        182,400
 357,700      .......       100,604.00   35        357,700



Estates And Trusts--2008

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

  $    0       $2,200             0.00   15         $    0
   2,200        5,150        $  330.00   25          2,200
   5,150        7,850         1,067.50   28          5,150
   7,850       10,700         1,823.50   33          7,850
  10,700        .....         2,764.00   35         10,700

Long-Term Capital Gains and Qualifying Dividends--2008

For taxpayers in the 10% or 15% bracket--0%

For taxpayers in higher brackets--15%

Tax on unrecaptured Sec. 1250 gain--25%

Capital gain rate on collectibles--28%

 

Standard Deduction--2008

Filing Status                       Standard Deduction

Married filing joint and 
surviving spouses                       $10,900

Heads of Household                        8,000
   
Single individuals                        5,450

Married, filing separate                  5,450

Dependent's Standard Deduction--No more than the greater of $900 or $300 plus the individual's earned income.

Additional standard deduction for aged and blind--$1,050 each ($1,350 if individual is unmarried and not surviving spouse)

Additional standard deduction for real estate taxes--$500 max. ($1,000 if married filing joint) if not itemizing.

Additional standard deduction for casualty losses in federally declared disaster area.

 

Itemized Deduction Phaseout--2008

All filing status but married separate--$159,950; Married, separate--$79,975

 

Personal Exemption--2008

Amount--$3,500

Phaseout of Personal Exemption--

Filing Status                                       AGI Begin Phaseout      AGI Maximum Phaseout

Married, filing joint/surviving spouse                    $239,950                 $362,450

Heads of household                                         199,950                  322,450

Single                                                     159,950                  282,450

Married, filing separate                                   119,975                  181,225

For taxable years beginning in 2008 the exemption amount for taxpayers with AGI in excess of the maximum phaseout amount is $2,333.

 

Alternative Minimum Tax--2008


First $175,000 ($87,500 married, separate) of Alternative Minimum Taxable Income       26%

Over $175,000 of AMTI (Alternative Minimum Taxable Income)                             28%

Exemptions:

Joint Filers                      $69,950 

Married, separate                 $34,975 

Single (and head of household)    $46,200 

Estates & Trusts                  $22,500 

Child subject to Kiddie Tax        $6,400 (plus child's earned income)


Exemption Phaseout:

25% of amount AMTI exceeds:

$150,000 for married, joint and surviving spouses

$112,500 single (and head of household)

$75,000 married, filing separate


Hope and Lifetime Learning Credits--2008

Phaseout begins at modified adjusted gross income of $96,000 joint return; $48,000 all others.

Hope credit, 100% of first $1,200; 50% of next $1,200; maximum credit $1,800.

 

Interest on Education Loans--2008

Maximum interest deduction--$2,500

Modified adjusted gross income phaseout range--Married, joint, $115,000--$145,000; all other filing status, $55,000--$70,000

 

Savings Bond/Higher Education Expense Exclusion--2008

Modified adjusted gross income phaseout--married, joint, $100,650--$130,650; all other filing status, $67,100--$82,100

 

Qualified Transportation Fringe Benefit Exclusion--2008

Commuter highway vehicle and transit pass--$115

Qualified parking--$220

 

Miscellaneous--2008

Annual Exclusion for Gifts--$12,000

Annual Exclusion for Gifts to Spouse not a Citizen--$128,000

Notice of Large Gifts Received from Foreign Persons--$13,561

Interest on Certain Portion of Estate Tax Payable in Installments (Sec. 6166; 2% portion)--$1,280,000

Valuation of Qualified Real Property in Decendent's Gross Estate (Sec. 2032A)--$960,000

Excessive Investment Income for Earned Income Tax Credit--$2,950

Unearned Income of Minor Child (Kiddie Tax)--$900 ($9,000 for parental election)

Minor Child subject to Kiddie Tax--up to age 18 or full-time student over 18 with earned income no more than 1/2 support under age 24.

 

Adoption Expenses--2008

Maximum credit for child with special needs--$11,650

Other adoptions, gross income exclusion, qualified expenses up to $11,650

Phaseout range, modified adjusted gross income--$174,730 to $214,730

 

Health Savings Accounts--2008

Maximum annual HSA contributions deductible--$2,900 for individual; $5,800 for family coverage

Catch-up contributions for individuals 55 or older (but less than 65) is $900 (pro rate for year).

Deductible Amounts that define High Deductible Plan:

                Annual Deductible   Deductibles, Co-Payments and other Amounts 
                  Not Less Than           but not Premiums Not to Exceed

Self Only            $1,100                         $ 5,600

Family Coverage       2,200                          11,200



Persons Against Which a Federal Tax Lien is Not Valid--2008

Purchasers in a casual sale for less than $1,320 or a mechanic's lienor that repair or improved certain residential property if the contract price is not more than $6,600.

 

Eligible Long-Term Care Premiums--2008


Attained Age Before the Close of the Tax Year   Limitation on Premiums

     40 or less                                        $  310
     More than 40 but not more than 50                    580
     More than 50 but not more than 60                  1,150
     More than 60 but not more than 70                  3,080
     More than 70                                       3,850

Social Security--2008

OASDI Wage Base--$102,000

Household employee cash wages threshold--$1,600

Quarter of coverage--$1,050

 

Tax Rate Schedules for Individuals and Trusts--2007

Single Taxpayers--2007

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  7,825        $    0.00   10       $      0
   7,825       31,850           782.50   15          7,825
  31,850       77,100         4,386.25   25         31,850
  77,100      160,850        15,698.75   28         77,100
 160,850      349,700        39,148.75   33        160,850
 349,700      .......       101,469.25   35        349,700
  

Married Individuals Filing Joint and Surviving Spouses--2007

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 15,650        $     0.00  10       $      0
  15,650       63,700          1,565.00  15         15,650
  63,700      128,500          8,772.50  25         63,700
 128,500      195,850         24,972.50  28        128,500
 195,850      349,700         43,830.50  33        195,850
 349,700      .......         94,601.00  35        349,700
 

Married Individuals Filing Separate--2007

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  7,825        $    0.00   10       $      0
   7,825       31,850           782.50   15          7,825
  31,850       64,250         4,386.25   25         31,850
  64,250       97,925        12,486.25   28         64,250
  97,925      174,850        21,915.25   33         97,925
 174,850      .......        47,300.50   35        174,850


Heads Of Households--2007

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 11,200        $    0.00   10       $      0
  11,200       42,650         1,120.00   15         11,200
  42,650      110,100         5,837.50   25         42,650
 110,100      178,350        22,700.00   28        110,100
 178,350      349,700        41,810.00   33        178,350
 349,700      .......        98,355.50   35        349,700



Estates And Trusts--2007

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

  $    0       $2,150                    15         $    0
   2,150        5,000        $  322.50   25          2,150
   5,000        7,650         1,035.00   28          5,000
   7,650       10,450         1,777.00   33          7,650
  10,450        .....         2,701.00   35         10,450

Long-Term Capital Gains and Qualifying Dividends--2007


For taxpayers in the 10% or 15% bracket--5%

For taxpayers in higher brackets--15%
 
Tax on unrecaptured Sec. 1250 gain--25%

Capital gain rate on collectibles--28%

Standard Deduction--2007

Filing Status                       Standard Deduction

Married filing joint and 
surviving spouses                       $10,700

Heads of Household                        7,850
   
Single individuals                        5,350

Married, filing separate                  5,350

Dependent's Standard Deduction--No more than the greater of $850 or $300 plus the individual's earned income.

Additional standard deduction for aged and blind--$1,050 each ($1,300 if individual is unmarried and not surviving spouse)

 

Itemized Deduction Phaseout--2007

All filing status but married separate--$156,400; Married, separate--$78,200

 

Personal Exemption--2007

Amount--$3,400

Phaseout of Personal Exemption--

Filing Status                                       AGI Begin Phaseout      AGI Maximum Phaseout

Married, filing joint/surviving spouse                    $234,600                 $357,100

Heads of household                                         195,500                  318,000

Single                                                     156,400                  278,900

Married, filing separate                                   117,300                  178,550

For taxable years beginning in 2007 the exemption amount for taxpayers with AGI in excess of the maximum phaseout amount is $1,133.

 

Alternative Minimum Tax--2007


First $175,000 ($87,500 married, separate) of Alternative Minimum Taxable Income       26%

Over $175,000 of AMTI (Alternative Minimum Taxable Income)                             28%

Exemptions:

Joint Filers (and surviving spouse)  $66,250 

Married, separate                    $33,125 

Single (and head of household)       $44,350

Estates & Trusts                     $22,500 

Child subject to Kiddie Tax           $6,050 (plus child's earned income)


Exemption Phaseout:

25% of amount AMTI exceeds:

$150,000 for married, joint and surviving spouses

$112,500 single (and head of household)

$75,000 married, filing separate


Hope and Lifetime Learning Credits--2007

Phaseout begins at modified adjusted gross income, $94,000 joint return; $47,000 all others.

Hope credit, 100% of first $1,100; 50% of next $1,100.

 

Interest on Education Loans--2007

Maximum interest deduction--$2,500

Modified adjusted gross income phaseout range--Married, joint, $110,000--$140,000; all other filing status, $55,000--$70,000

 

Savings Bond/Higher Education Expense Exclusion--2007

Modified adjusted gross income phaseout--married, joint, $98,400--$128,400; all other filing status, $65,600--$80,600

 

Qualified Transportation Fringe Benefit Exclusion--2007

Commuter highway vehicle and transit pass--$110

Qualified parking--$215

 

Miscellaneous--2007

Annual Exclusion for Gifts--$12,000

Annual Exclusion for Gifts to Spouse not a Citizen--$125,000

Notice of Large Gifts Received from Foreign Persons--$13,258

Interest on Certain Portion of Estate Tax Payable in Installments (Sec. 6166; 2% portion)--$1,250,000

Valuation of Qualified Real Property in Decendent's Gross Estate (Sec. 2032A)--$940,000

Excessive Investment Income for Earned Income Tax Credit--$2,900

Unearned Income of Minor Child (Kiddie Tax)--$850 ($8,500 for parental election)

Minor Child subject to Kiddie Tax--under age 18

 

Adoption Expenses--2007

Maximum credit for child with special needs--$11,390

Other adoptions, gross income exclusion, qualified expenses up to $11,390

Phaseout range, modified adjusted gross income--$170,820 to $210,820

 

Health Savings Accounts--2007

Maximum annual HSA contributions deductible--$2,850 for individual; $5,650 for family coverage

Catch-up contributions for individuals 55 or older (but less than 65) is $800 (pro rate for year).

Deductible Amounts that define High Deductible Plan:

                Annual Deductible   Deductibles, Co-Payments and other Amounts 
                  Not Less Than           but not Premiums Not to Exceed

Self Only            $1,100                         $ 5,500

Family Coverage       2,200                          11,000



Persons Against Which a Federal Tax Lien is Not Valid--2007

Purchasers in a casual sale for less than $1,290 or a mechanic's lienor that repair or improved certain residential property if the contract price is not more than $6,450.

 

Eligible Long-Term Care Premiums--2007


Attained Age Before the Close of the Tax Year   Limitation on Premiums

     40 or less                                        $  290
     More than 40 but not more than 50                    550
     More than 50 but not more than 60                  1,110
     More than 60 but not more than 70                  2,950
     More than 70                                       3,680

Social Security--2007

OASDI Wage Base--$97,500

Household employee cash wages threshold--$1,500

 

Tax Rate Schedules for Individuals and Trusts--2006

Single Taxpayers--2006

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  7,550        $    0.00   10       $      0
   7,550       30,650           755.00   15          7,550
  30,650       74,200         4,220.00   25         30,650
  74,200      154,800        15,107.50   28         74,200
 154,800      336,550        37,675.50   33        154,800
 336,550      .......        97,653.00   35        336,550
  

Married Individuals Filing Joint--2006

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 15,100        $     0.00  10       $      0
  15,100       61,300          1,510.00  15         15,100
  61,300      123,700          8,440.00  25         61,300
 123,700      188,450         24,040.00  28        123,700
 188,450      336,550         42,170.00  33        188,450
 336,550      .......         91,043.00  35        336,550
 

Married Individuals Filing Separate--2006

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  7,550        $    0.00   10       $      0
   7,550       30,650           755.00   15          7,550
  30,650       61,850         4,220.00   25         30,650
  61,850       94,225        12,020.00   28         61,850
  94,225      168,275        21,085.00   33         94,225
 168,275      .......        45,521.50   35        168,275


Heads Of Households--2006

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 10,750        $    0.00   10       $      0
  10,750       41,050         1,075.00   15         10,750
  41,050      106,000         5,620.00   25         41,050
 106,000      171,650        21,857.50   28        106,000
 171,650      336,550        40,239.50   33        171,650
 336,550      .......        94,656.50   35        336,550



Estates And Trusts--2006

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

  $    0       $2,050                    15         $    0
   2,050        4,850        $  307.50   25          2,050
   4,850        7,400         1,007.50   28          4,850
   7,400       10,050         1,721.50   33          7,400
  10,050        .....         2,596.00   35         10,050

Long-Term Capital Gains and Qualifying Dividends--2006


For taxpayers in the 10% or 15% bracket--5%

For taxpayers in higher brackets--15%
 
Tax on unrecaptured Sec. 1250 gain--25%

Capital gain rate on collectibles--28%

Standard Deduction--2006

Filing Status                       Standard Deduction

Married filing joint and 
surviving spouses                       $10,300

Heads of Household                        7,550
   
Single individuals                        5,150

Married, filing separate                  5,150

Dependent's Standard Deduction--No more than the greater of $850 or $300 plus the individual's earned income.
Additional standard deduction for aged and blind--$1,000 each ($1,250 if individual is unmarried and not surviving spouse)

 

Itemized Deduction Phaseout--2006

All filing status but married separate--$150,500; Married, separate--$75,250

 

Personal Exemption--2006

Amount--$3,300

Phaseout of Personal Exemption--

Filing Status                                       AGI Begin Phaseout      AGI Fully Phased Out

Married, filing joint/surviving spouse                      $225,750                 $348,250

Heads of household                                           188,150                  310,650

Single                                                       150,500                  273,100

Married, filing separate                                     112,875                  174,125
 

Alternative Minimum Tax--2006


First $175,000 ($87,500 married, separate) of Alternative Minimum Taxable Income       26%

Over $175,000 of AMTI (Alternative Minimum Taxable Income)                             28%

Exemptions:

Joint Filers                     $62,550

Married, separate                 31,275

Single (and head of household)    42,500 

Estates & Trusts                  22,500

Child subject to Kiddie Tax        6,050


Exemption Phaseout:

25% of amount AMTI exceeds:

$150,000 for married, joint and surviving spouses

$112,500 single (and head of household)

$75,000 married, filing separate


Hope and Lifetime Learning Credits--2006

Phaseout begins at modified adjusted gross income, $90,000 joint return; $45,000 all others.

Hope credit, 100% of first $1,100; 50% of next $1,100.

 

Interest on Education Loans--2006

Maximum interest deduction--$2,500

Modified adjusted gross income phaseout range--

Married, joint, $105,000--$135,000; all other filing status, $50,000--$65,000

 

Savings Bond/Higher Education Expense Exclusion--2006

Modified adjusted gross income phaseout begins--married, joint, $94,700--$124,700; all other filing status, $63,100--$78,100

 

Qualified Transportation Fringe Benefit Exclusion--2006

Commuter highway vehicle and transit pass--$105

Qualified parking--$205

 

Miscellaneous--2006

Annual Exclusion for Gifts--$12,000

Annual Exclusion for Gifts to Spouse not a Citizen--$120,000

Notice of Large Gifts Received from Foreign Persons--$12,760

Interest on Certain Portion of Estate Tax Payable in Installments (Sec. 6166; 2% portion)--$1,200,000

Valuation of Qualified Real Property in Decendent's Gross Estate (Sec. 2032A)--$900,000

Excessive Investment Income for Earned Income Tax Credit--$2,800

Unearned Income of Minor Child (Kiddie Tax)--$850 ($8,500 for parental election)

Minor Child subject to Kiddie Tax--under age 18  

Adoption Expenses--2006

Maximum credit for child with special needs--$10,960

Other adoptions, gross income exclusion, qualified expenses up to $10,960

Phaseout range, modified adjusted gross income--$164,410 to $204,410

 

Health Savings Accounts--2006

Maximum annual HSA contributions deductible--$2,700 for individual; $5,450 for family coverage

Catch-up contributions for individuals 55 or older ( but less than 65) is $700 (pro rate for year).

Deductible Amounts that define High Deductible Plan:

                Annual Deductible   Deductibles, Co-Payments and other Amounts 
                  Not Less Than           but not Premiums Not to Exceed

Self Only            $1,050                         $ 5,250

Family Coverage       2,100                          10,500



Persons Against Which a Federal Tax Lien is Not Valid--2006

Purchasers in a casual sale for less than $1,240 or a mechanic's lienor that repair or improved certain residential property if the contract price is not more than $6,210.

 

Eligible Long-Term Care Premiums--2006


Attained Age Before the Close of the Tax Year   Limitation on Premiums

     40 or less                                        $  280
     More than 40 but not more than 50                    530
     More than 50 but not more than 60                  1,060
     More than 60 but not more than 70                  2,830
     More than 70                                       3,530


 


Copyright 2003-2009 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject.--ISSN 1089-1536


Return to Home Page

Last update 11/24/09