2007 Federal Tax Schedules

All numbers are adjusted for inflation.

 

Married individuals filing joint returns and surviving spouses

If taxable income is: Tax is:
$1 - $15,650 10% of taxable income
$15,651 - $63,700 15% of taxable income
$63,701 - $128,500 25% of taxable income
$128,501 - $195,850 28% of taxable income
$195,851 - $349,700 33% of taxable income
Over $349,700 35% of taxable income

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Heads of Households

If taxable income is: Tax is:
$1 - $11,200 10% of taxable income
$11,201 - $42,650 15% of taxable income
$42,651 - $110,100 25% of taxable income
$110,101 - $178,350 28% of taxable income
$178,351 - $349,700 33% of taxable income
Over $349,700 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 - $7,825 10% of taxable income
$7,826 - $31,850 15% of taxable income
$31,851 - $77,100 25% of taxable income
$77,101 - $160,850 28% of taxable income
$160,851 - $349,700 33% of taxable income
Over $349,700 35% of taxable income

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Married individuals filing separate returns

If taxable income is: Tax is:
$1 - $7,825 10% of taxable income
$7,826 - $31,850 15% of taxable income
$31,851 - $64,250 25% of taxable income
$64,251 - $97,925 28% of taxable income
$97,926 - $174,850 33% of taxable income
Over $174,850 35% of taxable income

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Standard Deduction

Single $5,350
Married filing Jointly/Surviving spouses $10,700
Married filing separately $5,350
Head of household $7,850
Additional for elderly or blind (married) $1,050
Additional for elderly or blind (head of household) $1,300
Additional for elderly or blind (single) $1,300
Taxpayer dependent of another greater of $850 or $300 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

$3,400 (zero for individual who is dependent of another taxpayer)

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FICA & self-employment tax

Taxable wages for social security up to $97,500
Maximum social security $6,045
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 age 65 and eight months $12,960
Thereafter No limit

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Retirement plan limitations

IRA Contribution Limit $4,000
     50 & over catch-up $1,000
SIMPLE Deferral Limit $10,500
     50 & over catch-up $2,500
401(k) Deferral Limit $15,500
     50 & over catch-up $5,000

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Retirement plan Cost of Living Adjustments (COLAs)

Category For 2007
Compensation Cap for Plan Purposes $225,000
Compensation for Highly Compensated Definition $100,000
Compensation for HCE Definition and Top Paid 20% $100,000
Key Employee Compensation - Officer $145,000
Key Employee Compensation - 1% Owner $150,000
Deferral Limit for 401(k) & SAR-SEPs $15,500
Deferral Limit for 403(b) Plans $15,500
Deferral Limit for 457(b) Plans $15,500
Deferral Limit for SIMPLE IRA Plans $10,500
Maximum Match for SIMPLE IRA Plans $10,500
Minimum Earnings for SEP Contribution Plans $500
Social Security Wage Base OASDI $97,500
Medicare Wage Base Unlimited

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Section 179 Deduction

$112,000 for property placed in service in calendar years 2007.
(SUV Limit - $25,000)
Investment Limitation - $450,000 of qualified property placed in service during 2007.

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Kiddie tax unearned income maximum

$1,700

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Adoption Tax Credit

Expenses up to $11,390 (subject to modified AGI phase-out beginning at $170,820 
to completely phased out at $210,820) per child
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Alternative Motor Vehicle Credit

$3,400 maximum for taxpayer buying a hybrid or lean burn vehicle in 2007. This tax credit is adjusted quarterly when a particular manufacturer has sold 60,000 combined units after December 31, 2005.

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Education Loan Interest Deduction

$2,500

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Education Loan Interest Deduction (for AGI)

$2,500

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Estate Tax Exemption

Federal $2,000,000
State of Tennessee $1,000,000

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Top Estate Tax Rate

45%

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Annual Gift Exclusion

$12,000

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Standard mileage allowance

Business 48.5 cents/mile
Charitable activities 14 cents/mile
Medical expense 20 cents/mile
Moving expense 20 cents/mile

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

Personal exemption
Single $156,400/$278,900
Joint returns & surviving spouses $234,600/$357,100
Married filing separately $117,300/$178,550
Head of household $195,500/$318,000
Itemized deductions
Single/Joint/Head of Household $156,400
Married filing separately $78,200
College Savings bond interest exclusion
Single/Head of Household $65,600/$80,600
Joint $98,400/$128,400
Married filing separately $0
IRA deductibility (with company pension)
Single/Head of Household $52,000 - 62,000
Joint, when taxpayer has company pension $83,000 - 103,000
Joint, when spouse has company pension $156,000 -166,000
Married filing separately $0-$10,000
Roth IRA eligibility
Single/Head of household $99,000 - 114,000
Joint $156,000 - 166,000
Married filing separately $0 - 10,000
Rollover of regular IRA to Roth IRA $100,000 (not allowed for married filing separately)
Child credit
• $1,000 per child for 2007 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
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 $47,000 - 57,000
Joint $94,000 - 114,000
Married filing separately $0
Education loan interest deduction
Single/Head of Household $55,000 - $70,000
Joint $110,000 - 140,000
Married filing separately $0
Higher Education Deduction
Single $65,000/$80,000
Joint $130,000/$160,000
Married filing separately $0


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