2005 Federal Tax Schedules

All numbers are adjusted for inflation.

 

Married individuals filing joint returns and surviving spouses

If taxable income is: Tax is:
$1 - $14,600 10% of taxable income
$14,601 - $59,400 15% of taxable income
$59,401 - $119,950 25% of taxable income
$119,951 - $182,800 28% of taxable income
$182,801 - $326,450 33% of taxable income
Over $326,450 35% of taxable income

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Heads of Households

If taxable income is: Tax is:
$1 - $10,450 10% of taxable income
$10,451 - $39,800 15% of taxable income
$39,801 - $102,800 25% of taxable income
$102,801 - $166,450 28% of taxable income
$166,451 - $326,450 33% of taxable income
Over $326,450 35% of taxable income

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Single individuals (other than surviving spouses and heads of households)

If taxable income is: Tax is:
$1 - $7,300 10% of taxable income
$7,301 - $29,700 15% of taxable income
$29,701 - $71,950 25% of taxable income
$71,951 - $150,150 28% of taxable income
$150,151 - $326,450 33% of taxable income
Over $326,450 35% of taxable income

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Married individuals filing separate returns

If taxable income is: Tax is:
$1 - $7,300 10% of taxable income
$7,301 - $29,700 15% of taxable income
$29,701 - $59,975 25% of taxable income
$59,976 - $91,400 28% of taxable income
$91,401 - $163,225 33% of taxable income
Over $163,225 35% of taxable income

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Standard Deduction

Single $5,000
Married filing Jointly/Surviving spouses $10,000
Married filing separately $5,000
Head of household $7,300
Additional for elderly or blind (married) $1,000
Additional for elderly or blind (single) $1,250
Taxpayer dependent of another greater of $800 or $250 plus earned income, not to exceed regular standard deduction

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Maximum/minimum rate for net long-term capital gains

Over 12 months 15%/5%
Over 5 years Eliminated

 

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Personal exemption

$3,200 (zero for individual who is dependent of another taxpayer)

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FICA & self-employment tax

Taxable wages for social security up to $90,000
Maximum social security $5,580
Social security tax rate for both employers and employees 6.20%
Social security tax rate for self-employed 12.4%
Taxable wages for Medicare All
Maximum Medicare tax No limit
Medicare tax rate for both employers and employees 1.45%
Medicare tax rate for self-employed 2.9%
Self-employed health insurance deduction 100%

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Social security earnings limit

Under full retirement age $12,000
After full retirement age is reached No limit

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Retirement plan limitations

IRA Contribution Limit $4,000
     50 & over catch-up $500
SIMPLE Deferral Limit $10,000
     50 & over catch-up $2,000
401(k) Deferral Limit $14,000
     50 & over catch-up $4,000

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Retirement plan Cost of Living Adjustments (COLAs)

Category For 2005
Compensation Cap for Plan Purposes $210,000
Compensation for Highly Compensated Definition $95,000
Compensation for HCE Definition and Top Paid 20% $95,000
Key Employee Compensation - Officer $135,000
Key Employee Compensation - 1% Owner $150,000
Deferral Limit for 401(k) & SAR-SEPs $14,000
Deferral Limit for 403(b) Plans $14,000
Deferral Limit for 457(b) Plans $14,000
Deferral Limit for SIMPLE IRA Plans $10,000
Maximum Match for SIMPLE IRA Plans $10,000
Minimum Earnings for SEP Contribution Plans $450
Social Security Wage Base OASDI $90,000
Medicare Wage Base Unlimited

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Section 179 Deduction

$105,000 for property placed in service in calendar years 2005.
(SUV Limit - $25,000)

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Kiddie tax unearned income maximum

$1,600

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Adoption Tax Credit

Expenses up to $10,630 (subject to modified AGI phase-out beginning at $150,000 
to completely phased out at $190,000) per child

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Education Loan Interest Deduction

$2,500

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Higher Education Deduction

$4,000/$2,000

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Estate Tax Exemption

$1,500,000

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Top Estate Tax Rate

47%

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Annual Gift Exclusion

$11,000

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Standard mileage allowance

Business 40.5 cents/mile
Charitable activities 14 cents/mile
Medical expense 15 cents/mile
Moving expense 15 cents/mile

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Phase-out income levels (based on adjusted or modified adjusted gross income)

Personal exemption
Single $145,950/$268,450
Joint returns & surviving spouses $218,950/$341,450
Married filing separately $109,475/$170,725
Head of household $182,450/$304,950
Itemized deductions
Single/Joint/Head of Household $145,950
Married filing separately $72,975
College Savings bond interest exclusion
Single/Head of Household $61,200/$76,200
Joint $91,850/$121,850
Married filing separately $0
IRA deductibility (with company pension)
Single/Head of Household $50,000 - 60,000
Joint, when taxpayer has company pension $70,000 - 80,000
Joint, when spouse has company pension $150,000 -160,000
Married filing separately $0-$10,000
Roth IRA eligibility
Single/Head of household $95,000 - 110,000
Joint $150,000 - 160,000
Married filing separately $0 - 10,000
Rollover of regular IRA to Roth IRA $100,000 (not allowed for married filing separately)
Education IRA
Single/Head of household
$95,000 - 110,000
Married filing separately $95,000 - 110,000
Joint $190,000 - 220,000
HOPE/Lifetime learning credits
Single/Head of household $43,000 - 53,000
Joint $87,000 - 107,000
Married filing separately $0
Education loan interest deduction
Single/Head of Household $50,000 - $65,000
Joint $105,000 - 135,000
Married filing separately $0
Child credit
• $1,000 per child for 2005 for one or more qualifying children
Single/Head of household starts at $75,000
Joint starts at $110,000
Married filing separately starts at $55,000
Higher Education Deduction
Single $65,000/$80,000
Joint $130,000/$160,000
Married filing separately $0

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