 |
McCusker
& Associates - October, 2005
 Hi
Everybody,
Taxes
are probably the last thing on your mind at this time of the
year, unless of course you’re just finishing up the 2004 filing.
But, we are heading into the final quarter of 2005 so I wanted
to give you a heads up on some of the tax changes in store
for this year.
Toward
that end, I’ve put together a summary sheet of some of the
more common tax items that likely will have an impact on your
2005 tax filing. As always, if you need clarification on any
of these items please call or email.
Who knows, perhaps you can actually use this information to
do a little tax planning before the onslaught of holiday shopping,
turkey and yuletide punch renders us all senseless.
| Tax
Facts: |
|
| 2005
Standard Deductions: |
|
| |
Married
Joint |
$10,000 |
| |
Married
Separate |
$5,000 |
| |
Single |
$5,000 |
| |
Head
of Household |
$7,300 |
| |
|
|
2005
Tax Brackets:
|
|
| |
Married
Joint: |
|
| |
Taxable
Income: |
Rate: |
| |
$0
- $15,000 |
10% |
| |
$15,101
- $61,300 |
15% |
| |
$61,
301 - $123,700 |
25% |
| |
$123,701
- $188,450 |
28% |
| |
$188,451
- $336,550 |
33% |
| |
over
$336,551 |
35% |
| |
|
|
| |
Single |
|
| |
Taxable
Income: |
Rate: |
| |
$0
- $7,550 |
10% |
| |
$7,551 - $30,650 |
15% |
| |
$30,651
- $74,200 |
25% |
| |
$74,201 - $154,800 |
28% |
| |
$154,801
- $336,550 |
33% |
| |
over
$336,551 |
35% |
| |
| 2005
Capital Gains Tax Rate: Federal 15%, Mass 5.3% |
| |
|
|
| 2005
Traditional & Roth IRA Contribution Limit |
$4,000 |
| Additional
Allowable Contribution if > 50 yrs old |
$500 |
| |
|
|
| 2005
401(k) and 403(b) Employee Contribution Limits |
$14,000 |
| Additional
Allowable Contribution if > 50 yrs old |
$4,000 |
| |
|
| 2005
SEP/IRA Contribution Limits (Self-Employed) |
$42,000 |
| |
|
| 2005
Standard Mileage rate for Business Auto Use: |
| |
Jan.1
through Aug. 31 |
40.5
cents/mi. |
| |
Sept.
1 through Dec. 31 |
48.5
cents/mi. |
| |
|
| 2005
Child Tax Credit (for children under 17 at Dec. 31) |
$1,000
|
| |
|
|
| 2005
Annual Gift Tax Exclusion |
$12,000 |
As
always, if you have any questions please give us a call (978-256-1323)
or email.
Jim
|
|
