Tax Limitations: 2007
Estate and Gifting
Estate tax exclusion$2,000,000
Estate subject to Probate$100,000 +
Gift tax annual exclusion $12,000
Qualified Plans
Salary deferrals into 401(k), 403(b), and 457 Plans $15,000
Catch-up contribution (age 50+) $5,000
Defined Contribution $45,000
Defined Benefit $180,000
IRA and Roth IRA $4,000
Catch-up contribution (age 50+) $1,000
IRA deduction phaseout for active participants:
Single $52,000 - $62,000
Married filing jointly (both active) $83,000 - $103,000
Only one active participant $156,000 - $166,000
Married - filing separately $0 - $10,000
Roth IRA phaseout:
Single $99,000 - $114,000
Married filing jointly $156,000 - $166,000
Education
Coverdell Education Savings Account (ESA) phaseout:
Single $95,000 - $110,000
Married filing jointly $190,000 - $220,000
Hope & Lifetime Learning Credit phaseout:
Unmarried $47,000 - $57,000
Married filing jointly $94,000 - $114,000
Hope Credit
100% up to $1,100 of qualified expenses
50% on next $1,100 of qualified expenses
Lifetime Learning Credit
20% of the first $10,000 of qualified expenses
Student loan interest deduction phaseout:
Unmarried $55,000 - $70,000
Married filing jointly $110,000 - $140,000
Deductions
Personal Exemption $3,400
Standard Deduction:
Single $5,350
Head of Household $7,850
Married filing jointly $10,700
Married - filing separately $5,350
Phaseout of Itemized Deductions:
Married - filing separately $78,200
All others $156,400
Standard Mileage Use Rates:
Business $0.485 per mile
Charitable $0.14 per mile
Medical or Moving $0.20 per mile
Social Security & Medicare
Social Security tax rate (employee) 6.20%
Social Security tax rate (self-employed) 12.40%
Social Security taxable wage base $97,500
Retirement earnings exempt amount* $12,960/year
* $1 in social security benefits will be withheld for every $2 in earning above this amount
Medicare tax rate (employee) 1.45%
Medicare tax rate (self-employed) 2.90%
Medicare taxable wage base Unlimited
Medicare Part B
Monthly premium $93.50
Deductible $131
Coinsurance 20%