2007 Individual & Business Tax Information
Filing Requirements
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Filing Status
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Age
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Income
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Single
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under 65
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$8,750
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65 or older
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$10,050
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Head of Household
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under 65
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$11,250
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65 or older
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$12,550
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Married, filing jointly
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under 65 (both spouses)
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$17,500
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65 or older (one spouse)
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$18,550
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65 or older (both spouses)
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$19,600
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Married, filing separately
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any age
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$3,400
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Qualifying widow(er) with dependent child
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under 65
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$14,100
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65 or older
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$15,150
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Standard Deductions
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Filing Status
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Amount
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Single
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$5,350
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Married filing joint returns/Qualifying Widow(er)
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$10,700
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Head of household
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$7,850
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Married, filing separate return
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$5,350
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Dependent standard deduction minimum
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$850
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Exemptions
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Personal and Dependent Amount
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$3,400
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Single (Subject to phase-out)*
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$156,400/$278,900*
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Joint returns or surviving spouse (Subject to phase-out)*
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$234,600/$357,100*
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Head of Household (Subject to phase-out)*
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$195,500/$318,000*
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Married, filing separate return (Subject to phase-out)*
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$117,300/$178,550*
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Limit on Itemized Deductions
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Married, filing separate (phase-out starts)
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$78,200
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Others (phase-out starts)
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$156,400
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Casualty Loss (AGI Threshold)
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10%
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Medical Deduction (AGI Threshold)
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7.5%
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Miscellaneous Itemized (AGI Deduction Floor)
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2%
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Capital Gains Rate (Assets held more than 12 mos.)
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General Rate:
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15%
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Low Rate:
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5%
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High Rate:
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 Collectibles (coins, art,
antiques) |
28%
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Recaptured gain on real
estate (Sec. 1250 gain) |
25%
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Dividends, qualified (Post-December
31, 2002) |
15%
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Transportation & Travel
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Fringe Benefit: Employer-provided passes and vehicles
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$110/mo.
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Fringe Benefit: Qualified parking limit
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$215/mo.
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Business Mileage Rate
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48.5¢/mi.
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Charitable Mileage Rate
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14˘/mi.
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Medical and Moving Mileage Rate
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20˘/mi.
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Depreciation component of Standard Mileage Rate
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19˘/mi.
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High Cost Per Diem Travel Rate (after 10/31/03)
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$246
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Low Cost Per Diem Travel Rate (after 10/31/03)
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$148
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Retirement Pension Plans
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Maximum Annual Benefit for Defined Benefit Plan
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$180,000
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Maximum Annual Contribution Defined Contribution Plan
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$45,000
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Highly Compensated Employee Definition (In general)
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$100,000
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SEP De minimis Compensation Amount
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$500
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SEP Nondiscrimination Compensation Amount
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$225,000
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401(k) Maximum Compensation Amount
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$220,000
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401(k) Maximum Exclusion (In general)
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$15,500
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IRA Deduction Limit (In general)
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$4,000
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Catch-up Contributions
(Extra amount for individuals over age 49): |
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Traditional and
Roth IRAs |
$1000
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SIMPLEs |
$2,500
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401(k), 403(b)
and 457 Plans |
$5,000
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SIMPLE Contribution Limit
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$10,500
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Saver's Tax Credit (Maximum)
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$2,000
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Employer's Start-up Tax Credit
(For establishing retirement plan) |
$500
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Estate and Gift Taxes
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Gift Purposes
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$345,800
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| Estate Gift Purposes | $780,800 | |
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Annual Gift Tax Exclusion Amount (per person)
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$12,000
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State Death Tax Threshold Amount
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$3,100,000
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Estate/Gift Tax Rate (before phase-out)
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49%
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| State Death Tax Credit | 50% | |
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Payroll Taxes
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Soc. Sec. (Self-employed) Combined Rate (OASDI + Medicare)
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15.3%
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Soc. Sec. (Employer or Employee) Rate (OASDI + Medicare)
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7.65%
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OASDI Maximum Base
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$94,200
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Medicare Rate
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1.45%
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Social Security Rate
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6.2%
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FUTA Wage Base
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$7,000
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Nanny Tax Threshold
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$1,400
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Adjusted Gross Income Limits
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Casualty Loss Threshold
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10%
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Medical Deduction Threshold
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7.5%
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Miscellaneous Itemized Deduction Floor
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2%
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Education Provisions
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Hope Scholarship Credit
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$1,650
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Lifetime Learning Credit
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$2,000
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Coverdell Education Savings Account Contribution
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$2,000
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Higher Education Deduction
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$4,000
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Student Loan Interest Deduction
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$2,500
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U.S. Savings Bond Interest Exclusion (phase-out starts):
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Married, filing
joint return |
$124,700
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Single, Head of
Household |
$78,100
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Married filing
separate return |
$0
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Teacher's Classroom Expense Deduction
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$250
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Key Penalty Rates
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Failure to File Return
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5% per month (max 25%) of tax due
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Failure to Pay Tax
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1/2 of 1% per month (max 25%) of tax due
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Substantial Understatement of Tax
(greater than $5,000 or 10% of the proper tax) |
20% of the underpayment attributable to the understatement
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Home Sale Gain Exclusion
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Joint Filers
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$500,000
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Single Filers
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$250,000
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Federal Tax Rates
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10%
bracket ends at- |
15%
bracket ends at- |
25%
bracket ends at- |
28%
bracket ends at- |
33%
bracket ends at- |
35%
bracket ends at- |
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Married
filing separately |
$7,825
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$31,850
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$64,250
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$97,925
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$174,850
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Over $174,850
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Single
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$7,825
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$31,850
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$77,100
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$160,850
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$349,700
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Over
$349,700
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Head of
Household |
$11,200
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$42,650
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$110,100
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$178,350
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$349,700
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Over
$349,700
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Married filing
jointly or
Qualifying widow(er) |
$15,650
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$63,700
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$128,500
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$195,850
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$349,700
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Over
$349,700
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Source(s):
J.K. Lasser's - Your Income Tax 2008, IRS.gov, wikipedia.org