|
Tax Tips
|
|
Corporate Tax Information
| Form 1120: Corporation Tax Rate Schedule |
| For tax years beginning after December 31, 1992 |
| Over |
But Not Over
|
Tax Rate
|
Tax
|
|
$0
|
50,000
|
15% - 0
|
= Tax
|
|
50,000
|
75,000
|
25% - 5,000
|
= Tax
|
|
75,000
|
100,000
|
34% - 11,750
|
= Tax
|
|
100,000
|
335,000
|
39% - 16,750
|
= Tax
|
|
335,000
|
10,000,000
|
39% - 0
|
= Tax
|
|
10,000,000
|
15,000,000
|
35% - 100,000
|
= Tax
|
|
15,000,000
|
18,333,333
|
38% - 550,000
|
= Tax
|
|
18,333,333
|
–
|
35% - 0
|
= Tax
|
Top
Individual Tax Information
| Income Taxes |
|
2006
|
|
Over
|
But Not Over
|
The Tax Is:
|
Tax
|
| Married Filing Jointly or QW: |
|
$0
|
$15,100
|
10% minus 0
|
= Tax
|
|
$15,101
|
$61,300
|
15% minus 755
|
= Tax
|
|
$61,301
|
$123,700
|
25% minus 6,885
|
= Tax
|
|
$123,701
|
$188,450
|
25% minus 10,596
|
= Tax
|
|
$188,451
|
$336,550
|
33% minus 20,018.50
|
= Tax
|
|
$336,551
|
and over
|
35% minus 25,749.50
|
= Tax
|
|
|
|
|
| Single: |
|
$0
|
$7,550
|
10% minus 0
|
= Tax
|
|
$7,551
|
$30,650
|
15% minus 377.50
|
= Tax
|
|
$30,651
|
$74,200
|
25% minus 3,442.50
|
= Tax
|
|
$74,201
|
$154,800
|
28% minus 5,668.50
|
= Tax
|
|
$154,801
|
$336,550
|
33% minus 13,408.50
|
= Tax
|
|
$336,551
|
and over
|
35% minus 20,139.50
|
= Tax
|
|
|
|
|
|
HOH (Head of Household):
|
| $0 |
$10,750 |
10% minus 0 |
= Tax |
| $10,751 |
$41,050 |
15% minus 537.50 |
= Tax |
| $41,051 |
$106,000 |
25% minus 4,642.50 |
= Tax |
| $106,001 |
$171,650 |
28% minus 7,822.50 |
= Tax |
| $171,651 |
$336,550 |
33% minus 16,405 |
= Tax |
| $336,551 |
and over |
35% minus 23,136 |
= Tax |
|
|
|
|
|
MFS (Married Filing Singly)
|
| $0 |
$7,550 |
10% minus 0 |
= Tax |
| $7,551 |
$30,650 |
15% minus 377.50 |
= Tax |
| $30,651 |
$61,850 |
25% minus 3,442.50 |
= Tax |
| $61,851 |
$94,225 |
28% minus 5,298.50 |
= Tax |
| $94,226 |
$168,275 |
33% minus 10,009.25 |
= Tax |
|
$168,276
|
and over
|
35% minus 13,374.75
|
= Tax
|
Top
| 2006 Standard Deductions |
|
Status
|
Annual
|
Addt'l Age 65 or
Older, or Blind
|
|
Married Filing Jointly or QW
|
$10,300
|
$1,000
|
|
|
Single
|
$5,150
|
$1,250
|
|
HOH
|
$7,550
|
$1,250
|
|
MFS
|
$5,150
|
$1,000
|
|
| Dependent Children: Standard Deduction for 2006 |
|
Greater of $850 or the amount of earned income, plus $300 (not to exceed $5,150*).
*Blind dependent: Add $1,250
|
Top
| 2006 Personal Exemptions |
|
Exemption
|
Amount
|
|
1
|
$3,300
|
|
2
|
$6,600
|
|
3
|
$9,900
|
| 4 |
$13,200 |
| 5 |
$16,500 |
| 6 |
$19,800 |
| 7 |
$23,100 |
|
8
|
$26,400
|
Top
| 2006 Mileage Rates |
|
Business
|
44.5 ¢
|
|
Medical
|
18 ¢
|
|
Moving
|
18 ¢
|
|
Charitable
|
14 ¢
|
Top
| 2006 Kiddie Tax Threshold |
|
$1,700
|
Top
| 2006 Earned Income Credit * |
|
Qualifying Children
|
Earned Income/AGi less than:
|
|
0
|
$12,120
|
|
1
|
$32,001
|
|
2 or More
|
$36,348
|
Add $2,000 to above AGI phase-outs if MFJ.
Investment income limt = $2,800 |
Top
| Capital Gains Tax: |
|
Taxpayer in:
|
Length of Time Holding Asset
|
Rate
|
|
15% Bracket
|
>12 Months
|
5%
|
| All other Brackets |
>12 Months
|
15%
|
|
The 25% and the 28% long-term
captial gain rates were not changed by JGTRRA.
|
Top
| 2006 Phase-Out Amounts/Ranges |
| Tuition and Fees Deductions |
| MFJ |
$130,000 / $160,000 |
| QW |
$65,000 / $80,000 |
| Single |
$65,000 / $80,000 |
| HOH |
$65,000 / $80,000 |
| MFS |
Do Not Qualify |
|
Student Loan Interest Deduction
|
| MFJ |
$105,000 - $135,000 |
| QW |
$50,000 - $65,000 |
| Single |
$50,000 - $65,000 |
| HOH |
$50,000 - $65,000 |
| MFS |
Do Not Qualify |
|
Hope Scholarship and Lifetime Learning Credit
|
| MFJ |
$90,000 - $110,000 |
| QW |
$45,000 - $55,000 |
| Single |
$45,000 - $55,000 |
| HOH |
$45,000 - $55,000 |
| MFS |
Do Not Qualify |
|
Education Savings Account (ESA)
|
| MFJ |
$190,000 - $220,000 |
| QW |
$95,000 - $110,000 |
| Single |
$95,000 - $110,000 |
| HOH |
$95,000 - $110,000 |
| MFS |
$95,000 - $110,000 |
|
Traditional IRA Active Participant in Retirement Plan
|
| MFJ |
$75,000 - $85,000 |
| QW |
$75,000 - $85,000 |
| Single |
$50,000 - $60,000 |
| HOH |
$50,000 - $60,000 |
| MFS |
$0 - $10,000 |
|
Roth IRA
|
| MFJ |
$150,000 - $160,000 |
| QW |
$150,000 - $160,000 |
| Single |
$95,000 - $110,000 |
| HOH |
$95,000 - $110,000 |
| MFS |
$0 - $10,000 |
|
Child Tax Credit
|
| MFJ |
$110,000 |
| QW |
$75,000 |
| Single |
$75,000 |
| HOH |
$75,000 |
| MFS |
$55,000 |
|
Active Rental RE Losss
|
| MFJ |
$100,000 |
| QW |
$100,000 |
| Single |
$100,000 |
| HOH |
$100,000 |
| MFS |
$50,000 |
|
Personal Exemptions
|
| MFJ |
$225,750 - $348,250 |
| QW |
$225,750 - $348,250 |
| Single |
$150,500 - $273,000 |
| HOH |
$188,150 - $310,650 |
| MFS |
$112,875 - $174,125 |
|
Itemized Deductions
|
| MFJ |
$150,500 |
| QW |
$150,500 |
| Single |
$150,500 |
| HOH |
$150,500 |
| MFS |
$75,250 |
|
Saver's Credit
|
| MFJ |
$50,000 |
| QW |
$25,000 |
| Single |
$25,000 |
| HOH |
$37,500 |
| MFS |
$25,000 |
|
AMT Exemption (AMTI)
|
| MFJ |
$150,000 - $400,200 |
| QW |
$150,000 - $400,200 |
| Single |
$112,500 - $282,500 |
| HOH |
$112,500 - $282,500 |
| MFS |
$75,000 - $200,100 |
|
|
Top
Estate Tax Information
2006 Tax Year
| Estates & Trusts (Form 1041): |
|
Taxable Income
|
The Tax Is:
|
Of The Amount Over
|
|
$0 - $2,050
|
15% minus 0
|
= Tax
|
|
$2,051 - 4,850
|
25% minus 205
|
= Tax
|
|
$4,851 - $7,400
|
28% minus 350.50
|
= Tax
|
|
$7,401 - $10,050
|
33% minus 720.50
|
= Tax
|
|
$10,051 and over
|
35% minus 0
|
= Tax
|
| Estates & Gift Taxes (Forms 706 and 709) |
| For gifts made and estates of descendants dying in 2006 |
|
If Taxable Estate Is:
|
|
TAX
|
|
Over
|
But Not Under
|
The Tax Is:
|
|
$0
|
$10,000
|
18% minus 0
|
= Tax
|
|
10,000
|
20,000
|
20% minus 200
|
= Tax
|
|
20,000
|
40,000
|
22% minus 600
|
= Tax
|
|
40,000
|
60,000
|
24% minus 1,400
|
= Tax
|
|
60,000
|
80,000
|
26% minus 2,600
|
= Tax
|
|
80,000
|
100,000
|
28% minus 4,200
|
= Tax
|
|
100,000
|
150,000
|
30% minus 6,200
|
= Tax
|
|
150,000
|
250,000
|
32% minus 9,200
|
= Tax
|
|
250,000
|
500,000
|
34% minus 14,200
|
= Tax
|
|
500,000
|
750,000
|
37% minus 29,200
|
= Tax
|
|
750,000
|
1,000,000
|
39% minus 44,200
|
= Tax
|
|
1,000,000
|
1,250,000
|
41% minus 64,200
|
= Tax
|
|
1,250,000
|
1,500,000
|
43% minus 89,200
|
= Tax
|
|
1,500,000
|
2,000,000
|
45% minus 119,200
|
= Tax
|
|
2,000,000
|
and over
|
46% minus 139,200
|
= Tax
|
| 2006 Exclusion Amounts |
|
Estate Tax Exclusion
|
Gift Tax Exclusion
|
Annual Gift Exclusion
|
|
$2,000,000
|
$1,000,000
|
$12,000
|
Top
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