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

Standard Deductions/Personal Exemption New for 2007