| 2007 Tax Rates | Standard Deductions/Personal Exemption | New for 2007 |
Various Adjustments of Tax Numbers for 2007
(Most references to AGI mean modified adjusted gross income for that deduction)
| Maximum Salary Deferrals: | $15,500 for 401(k), 403(b), 501(c), 457 plans; $10,500 for SIMPLE; see 'Retirement Plans' for contribution limits for age 50+: (additional $5,00/$2,500 catch-up) |
| Traditional IRA Contributions Limit: | $4,000 (up to amount of earned income for the year)
--additional catch-up $1,000 for age 50+ maximum $45,000 for a SEP-IRA |
Traditional IRA Contributions Deduction Phaseout: (when also eligible to contribute to a retirement plan at work) |
MFJ, QW: $83,000-$103,000 S, HH: $52,000-$62,000 MFS: 0-$10,000 And when taxpayer not plan eligible, but spouse covered by a plan: $156,000-$166,000 see 'Retirement Plans' regarding contribution limits |
Roth IRA Contributions Phaseout: |
MFJ: $156,000-$166,000 S, HH: $99,000-$114,000 MFS: 0-$10,000 |
| Social Security: |
Under age 65, can earn up to $12,960 without repaying benefits. Preceding months in year of reaching age 65: $34,440. After reaching age 65, no limit. Benefits reduced $1 every $2 earned over limit. Earnings subject to SS tax: Employee: $97,500 (maximum $6,045) Household help: cash wages over $1,400 |
| Health Savings Account: | Maximum HSA deduction $2,850 individual coverage / $5,650 family coverage. |
| Educational Credit: | Hope Credit: 100% of first $1,100, 50% of next $1,100 tuition (first two years college) Lifetime Learning Credit: 20% of up to $10,000 tuition (any year college+) AGI phaseout: $47,000-$57,000 (S); $94,000-$114,000 (MFJ) |
| Student Loan Interest: | Up to $2,500 AGI phaseout: $110,000-$140,000 (MFJ), $55,000-$70,000 (individual) |
Earned Income Credit: |
Earned income/modified AGI under: One qualifying child: $33,241 ($35,241 MFJ) (maximum credit $2,853) Two qualifying children: $37,783 ($39,783 MFJ) (maximum credit $4,716) Qualifying without child: $12,590 ($14,590 MFJ) (maximum credit $428) (disqualified if investment income over $2,900, any filing status) |
| Adoption Credit | Up to $11,390 (phaseout $170,820-$210,820) |
| Standard Mileage Rates: |
Business: 48.5¢ (Depreciation conversion: 19¢) Charity: 14¢ Medical/Moving: 20¢ |
| Itemized Deduction phaseout: | starts at AGI of $156,400 ($78,200 MFS) |
| Personal Exemption phaseout: | Starts at AGI of: $117,300 MFS $156,400 S $195,500 HH $234,600 MFJ / QW |
| Section 179 Expense: | $125,000; placed-in-service phaseout $500,000 |
| Depreciation Limit: | Passenger auto limit, first year business: $3,060; Trucks, vans: $3,260 |
| Foreign Income Exclusion: | $85,700 |
| See the original 'NEW TAX LAWS' menu for ongoing changes for this year | |
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| 2007 Tax Rates | Standard Deductions/Personal Exemption | New for 2007 |
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