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Quick Tax
Facts & Information for 2007
Standard Deduction
Single: $5,350
Head of Household: $7,850
Married Filing Joint: $10,700
Married Filing Separately: $5,350
Qualifying Widow/Widower: $10,700
Dependent: $850-$5,350*
Additional Amount if Blind: $1,050
Additional Amount if age 65 or older: $1,050
* Dependents must calculate their standard deduction
using an IRS Worksheet.
Personal Exemption
Per taxpayer and dependent: $3,400
Phaseout of Personal
Exemptions
The amount you can claim for
personal exemptions starts to
phase out once you reach certain
income thresholds. If your
income is within these ranges,
your personal exemptions will be
reduced. If your income exceeds
the amounts listed below, your
personal exemption is completely
eliminated.
Single: $156,400 - $278,900
Head of Household: $195,500 -
$318,000
Married Filing Joint:
$234,600 - $357,100
Married Filing Separately:
$117,300 - $178,550
Qualifying Widow/Widower:
$234,600 - $357,100
Phaseout
of Itemized
Deductions
The dollar
value of
your
itemized
deductions
begins to be
reduced once
your income
reaches a
certain
threshold.
Top quality
tax software
will help
you
accurately
calculate
your
itemized
deductions
and any
phaseouts.
Phaseout
begins at:
Single:
$156,400
Head of
Household:
$156,400
Married
Filing
Joint:
$156,400
Married
Filing
Separately:
$78,200
Qualifying
Widow/Widower:
$156,400
Retirement Plan Limits
You can save for retirement up to the maximum dollar limit. Maximum contributions vary by the type of retirement plan:
Traditional or Roth IRA: $4,000 ($5,000 if age 50 or older)*
SEP IRA: $45,000**
SIMPLE IRA: $10,500 ($13,000 if age 50 or older)
401(k) plan: $15,500 ($20,500 if age 50 or older)
403(b) plan: $15,500 ($20,500 if age 50 or older)
457 plan: $15,500 ($20,500 if age 50 or older)
Defined Contribution Pension: $45,000
Defined Benefit Pension: $180,000
*If you fund both a traditional and Roth IRA, your total contribution to cannot exceed $4,000 (or $5,000) combined.
**SEP IRA contributions are calculated on an IRS worksheet. Your maximum contribution may be less than $45,000.
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In October 2005, The Energy Policy act HR 6 was passed and signed into law and it entitles all eligible homeowners to tax credits for energy saving home improvements. During 2006, individuals can make energy-conscious purchases that will provide tax benefits for making your principal residence, which must be in the United States, more energy efficient and for buying certain energy efficient items.
The law provides a 10 percent credit for buying qualified energy efficiency improvements. To qualify, a component must meet or exceed the criteria established by the 2000 International Energy Conservation Code (2000 IECC including supplements) and must be installed in the taxpayer’s main home in the United States. This is good news for homeowners. A tax credit reduces your bottom-line tax bill dollar-for-dollar, making it more valuable than a deduction.
Click here for information relating to these Federal Energy Tax Credits
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