Michael P. Mullen, CPA

Certified Public Accountants

Federal Tax Summary Info

The following represents our “quick reference” section for those rates and amounts you need on specific occasions.  Please remember that tax laws (and these amounts) are continually changing and this listing is only to be used as a starting reference point.   If you need professional advice or further elaboration on a number listed below, please call our office.

Individual Deductions and Credits

2005

2006

2007

2008

2009
Standard Deduction, Joint Return And Surviving Spouse $10,000 $10,300 $10,700 $10,900

$11,400
Standard Deduction, Head of Household $7,300 $7,550 $7,850 $8,000 $8,350
Standard Deduction, Single $5,000 $5,150 $5,350 $5,450 $5,700
Standard Deduction, Married Filing Separate $5,000 $5,150 $5,350 $5,450 $5,700
Personal exemption $3,200 $3,300 $3,400 $3,500 $3,650
Taxpayer Claimed As A Dependent $800 $850 $850 $900 $950
Additional Standard Deduction For Blindness or Age, Single $1,250 $1,250 $1,300 $1,300 $1,400
Additional Standard Deduction For Blindness or Age, Married $1,000 $1,000 $1,050 $1,050 $1,100
Itemized Deduction Income Threshold (deductions reduced by 3% of amount your adjusted gross income exceeds threshold) $144,950 $150,500 $156,400 $159,950 $166,800
Maximum IRA Deduction $4,000 $4,000 $4,000 $5,000 $5,000
Additional IRA Deduction For Age 50 and Over $500 $1,000 $1,000 $1,000 $1,000
Hope Scholarship Credit Per Eligible Student $1,500 $1,500 $1,650 $1,800 $1,800
Lifetime Learning Credit $2,000 $2,000 $2,000 $2,000 $2,000
Maximum Contribution To Education Savings Account (previously Education IRA) $2,000 $2,000 $2,000 $2,000 $2,000
Maximum Child Tax Credit $1,000 $1,000 $1,000 $1,000 $1,000

Business Deductions

2005

2006

2007

 2008 2009
Section 179 Deduction $105,000 $108,000 $125,000 $250,000 $133,000
Phaseout Amount $420,000 $430,000 $500,000 $800,000 $530,000

Dividend Tax Rates

2005

2006

2007

 2008 2009
Tax Rate On Dividends Received From U.S. And Some Qualified Foreign Companies 15% 15% 15% 15% 15%
Tax Rate On Dividends For Low Income Taxpayers (10% and 15% Brackets) 5% 5% 5% 5% 5%

Auto And Transportation Allowances
  2005 2006 2007 2008 2009
Business Mileage Rate** **.405 .445 .485 ***.505 .55
Medical/Moving Mileage Rate .15 .18 .20 ***.19 .24
Charity Mileage Rate .14 .14 .14 .14 .14
Vehicle/Transit Pass Limit $105 $105 $110 $115 $120
Qualified Parking Limit $200 $205 $215 $220 $230
**The mileage rate was raised to .485 effective September 1, 2005 through December 31, 2005***The business mileage rate was raised to .585 effective July 1, 2008 through December 31, 2008 and the medical/moving mileage rate was raised to .27 effective July 1, 2008 through December 31, 2008Inclusion Amount For Leased Autos (smbiz.com)

 

Federal Income Tax Schedules
IRS 2008 Individual Tax Table
2008 Individual Tax Rate Schedules
2009 Individual Tax Rate Schedules
2000-2008 Corporate Tax Rates

Social Security and Self-Employment Tax
2005  2006  2007 2008 2009
FICA Taxable Maximum Earnings $90,000 $94,200 $97,500 $102,000 $106,800
FICA Tax Rate On Employee 6.2% 6.2% 6.2% 6.2% 6.2%
Tax on Self-Employment Earnings 12.4% 12.4% 12.4% 12.4% 12.4%
Medicare Taxable Maximum Earnings No Limit No Limit No Limit No Limit No Limit
Medicare Tax Rate on Employee 1.45% 1.45% 1.45% 1.45% 1.45%
Medicare Tax on Self-Employment Earnings 2.9% 2.9% 2.9% 2.9% 2.9%
Social Security Earnings Cap – Recipients Under 65 $12,000 $12,480 $12,960 $13,560 $14,160
Social Security Earnings Cap – Recipients 65-69 * No Limit No Limit No Limit No Limit No Limit
Social Security Earnings Cap – Recipients Over 70 No Limit No Limit No Limit No Limit No Limit
Income Limit Before 50% Benefits Taxed, Single $25,000 $25,000 $25,000 $25,000 $25,000
Income Limit Before 50% Benefits Taxed, Joint $32,000 $32,000 $32,000 $32,000 $32,000
Income Limit Before 85% Benefits Taxed, Single $34,000 $34,000 $34,000 $34,000 $34,000
Income Limit Before 85% Benefits Taxed, Joint $44,000 $44,000 $44,000 $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 ($36,120 in 2008 and $37,680 in 2009) during the retiree’s 65th year for those months prior to the actual birthday.

Retirement Plan Amounts
2005 2006 2007 2008 2009
Limit on 401(k) Elective Deferrals $14,000 $15,000 $15,500 $15,500 $16,500
Allowable Catch-Up Contribution For Employees 50 and Over $4,000 $5,000 $5,000 $5,000 $5,500
Compensation Limit Under 401(a)(17), 404(I) and 408(k)(3)(C) $210,000 $220,000 $225,000 $230,000 $245,000
Deferral Limit Under A SIMPLE Plan $10,000 $10,000 $10,500 $10,500 $11,500
SIMPLE Plan Deferral Limit – Age 50 $12,000 $12,500 $13,000 $13,000 $14,000
Limit on Annual Benefit From A Defined Benefit Plan $170,000 $175,000 $180,000 $185,000 $195,000
Earnings Definition of Highly Compensated Employee $95,000 $100,000 $100,000 $105,000 $110,000
Limit on Deductible Contributions to Defined Contribution Plans $42,000 $44,000 $45,000 $46,000 $49,000
Compensation Limit To Trigger a SEP $450 $450 $500 $500 $550

Estate And Gift Amounts

2005

2006

2007

 2008 2009
Annual Gift Exclusion $11,000 $12,000 $12,000 $12,000 $13,000
Lifetime Gift Exclusion

$1 million

$1 million

$1 million

$1 million

$1 million
Estate Tax Exclusion $1.5 million $2 million $2 million $2 million $3.5 million