All numbers are adjusted for inflation.
If taxable income is: Tax is: $1 - $15,100 10% of taxable income $15,101 - $61,300 15% of taxable income $61,301 - $123,700 25% of taxable income $123,701 - $188,450 28% of taxable income $188,451 - $336,550 33% of taxable income Over $336,550 35% of taxable income
If taxable income is: Tax is: $1 - $10,750 10% of taxable income $10,751 - $41,050 15% of taxable income $41,051 - $106,000 25% of taxable income $106,001 - $171,650 28% of taxable income $171,651 - $336,550 33% of taxable income Over $336,550 35% of taxable income
If taxable income is: Tax is: $1 - $7,550 10% of taxable income $7,551 - $30,650 15% of taxable income $30,651 - $74,200 25% of taxable income $74,201 - $154,800 28% of taxable income $154,801 - $336,550 33% of taxable income Over $336,550 35% of taxable income
If taxable income is: Tax is: $1 - $7,550 10% of taxable income $7,551 - $30,650 15% of taxable income $30,651 - $61,850 25% of taxable income $61,851 - $94,225 28% of taxable income $94,226 - $168,275 33% of taxable income Over $168,275 35% of taxable income
Single $5,150 Married filing Jointly/Surviving spouses $10,300 Married filing separately $5,150 Head of household $7,550 Additional for elderly or blind (married) $1,000 Additional for elderly or blind (head of household) $1,250 Additional for elderly or blind (single) $1,250 Taxpayer dependent of another greater of $850 or $300 plus earned income, not to exceed regular standard deduction
Over 12 months 15%/5% Over 5 years Eliminated
$3,300 (zero for individual who is dependent of another taxpayer)
Taxable wages for social security up to $94,200 Maximum social security $5,840 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%
Under age 65 and eight months $12,480 Thereafter No limit
IRA Contribution Limit $4,000 50 & over catch-up $1,000 SIMPLE Deferral Limit $10,000 50 & over catch-up $2,500 401(k) Deferral Limit $15,000 50 & over catch-up $5,000
Category For 2006 Compensation Cap for Plan Purposes $220,000 Compensation for Highly Compensated Definition $100,000 Compensation for HCE Definition and Top Paid 20% $100,000 Key Employee Compensation - Officer $140,000 Key Employee Compensation - 1% Owner $150,000 Deferral Limit for 401(k) & SAR-SEPs $15,000 Deferral Limit for 403(b) Plans $15,000 Deferral Limit for 457(b) Plans $15,000 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 $94,200 Medicare Wage Base Unlimited
$108,000 for property placed in service in calendar years 2006.
(SUV Limit - $25,000)Investment Limitation - $430,000 of qualified property placed in service during 2006.
$1,700
Expenses up to $10,960 (subject to modified AGI phase-out beginning at $164,410
to completely phased out at $204,410) per child
Top
Alternative Motor Vehicle Credit
$3,400 maximum for taxpayer buying a hybrid or lean burn vehicle in 2006. Company paid expenses $10,960
$2,500
$2,500
Federal $2,000,000 State of Tennessee $1,000,000
46%
$12,000
Business 44.5 cents/mile Charitable activities 14 cents/mile Medical expense 18 cents/mile Moving expense 18 cents/mile
Personal exemption Single $150,500/$273,000 Joint returns & surviving spouses $225,750/$348,250 Married filing separately $112,875/$174,125 Head of household $188,150/$310,650 Itemized deductions Single/Joint/Head of Household $150,500 Married filing separately $72,250 College Savings bond interest exclusion Single/Head of Household $63,100/$78,100 Joint $94,700/$124,700 Married filing separately $0 IRA deductibility (with company pension) Single/Head of Household $50,000 - 60,000 Joint, when taxpayer has company pension $75,000 - 85,000 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) Child credit
• $1,000 per child for 2006 for one or more qualifying childrenSingle/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 $45,000 - 55,000 Joint $90,000 - 110,000 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 Higher Education Deduction Single $65,000/$80,000 Joint $130,000/$160,000 Married filing separately $0