 |
McCusker
& Associates - November, 2006
 Hi
Everybody,
Now
that the mid-term elections are over, I thought it might be
time to come out with a little “negative advertising”
of my own.
Here it is: “It’s almost tax time again.”
I
hope this revelation doesn’t cause me to suffer the
same fate as one of our local politicians. However, I thought
with the year end fast approaching it would be a good time
to update you on some of the tax changes that have taken effect
this year. So before the impact of the elections find their
way into our tax code and makes us all feel blue, here’s
what our friends in Washington have crafted for 2006 to keep
us in the red for now.
| Tax
Facts: |
|
|
| Standard
Deductions: |
2006 |
2007 |
| |
Married
Joint |
$10,300 |
$10,700 |
| |
Married
Separate |
$5,150 |
$5,350 |
| |
Single |
$5,150 |
$5,350 |
| |
Head
of Household |
$7,550 |
$7,850 |
| |
|
|
|
Personal
Exemptions:
|
$3,300 |
$3,400 |
2007
Tax Brackets:
|
|
|
| |
Married
Joint: |
|
|
| |
Taxable
Income: |
|
Rate: |
| |
$0
- $15,650 |
|
10% |
| |
$15,651
- $63,700 |
|
15% |
| |
$63,701
- $128,500 |
|
25% |
| |
$128,501
- $195,850 |
|
28% |
| |
$195,851
- $349,700 |
|
33% |
| |
over
$349,700 |
|
35% |
| |
|
|
|
| |
Single: |
|
|
| |
Taxable
Income: |
|
Rate: |
| |
$0
- $7,825 |
|
10% |
| |
$7,826 - $31,850 |
|
15% |
| |
$31,851
- $77,100 |
|
25% |
| |
$77,101 - $160,850 |
|
28% |
| |
$160,851
- $349,700 |
|
33% |
| |
over
$349,700 |
|
35% |
| |
|
|
|
| |
Head
of Household: |
|
|
| |
Taxable
Income: |
|
Rate: |
| |
$0
- $11,200 |
|
10% |
| |
$11,201 - $42,650 |
|
15% |
| |
$42,651
- $110,100 |
|
25% |
| |
$110,101 - $178,350 |
|
28% |
| |
$178,351
- $349,700 |
|
33% |
| |
over
$349,700 |
|
35% |
| |
| 2006/2007
Capital Gains Tax Rate: Federal 15%, Mass 5.3% |
| |
|
|
|
| |
|
2006 |
2007 |
| Traditional
& Roth IRA Contribution Limit |
$4,000 |
$4,000 |
| Additional
Allowable Contribution if >50 yrs old |
$1,000 |
$1,000 |
| |
|
|
|
| 401(k)
and 403(b) Employee Contribution Limits |
$15,000 |
$15,500 |
| Additional
Allowable Contribution if >50 yrs old |
$5,000 |
$5,000 |
| |
|
|
| SEP/IRA
Contribution Limits (Self-Employed) |
$44,000 |
$45,000 |
| Additional
Allowable Contribution if >50 yrs old |
$5,000 |
$5,000 |
| |
|
|
| SEP/IRA
Employee Contribution Limits |
$10,000 |
$10,500 |
| Additional
Allowable Contribution if >50 yrs old |
$2,500 |
$2,500 |
| |
|
|
| Standard
Mileage Rates for Auto Use: |
| |
Business |
48.5
cents/mile |
|
| |
Charitable |
14.0
cents/mile |
|
| |
Medical |
20.0
cents/mile |
|
| |
Moving |
20.0
cents/mile |
|
| |
|
|
| 2006
Child Tax Credit (children <17 at Dec. 31)
|
$1,000 |
|
| |
2006
“Kiddie Tax”: unearned income of
children <18 (was <14 in 2005) in excess of $1,700
will be taxed at the parents’ marginal tax rate. |
| |
|
|
|
| 2006/2007
Annual Gift Tax Exclusion |
$12,000 |
|
I
hope this was of value to you. As always, please feel free
to send an email
or call me at 978-256-1323. I welcome your questions and feedback.
Jim
McCusker
 P.S.
We were profiled in the Boston Globe
earlier this month. No
joy in splitsville, but advisor can help (Word
file)
|
 |
