2006 inflation adjustments.

2006 Inflation Adjustments

2006 income tax rates:

Rate (%)   MFJ                 Single              HOH

10         0-$15,100           0-$7,550            0-$10,750
15         $15,100-$61,300     $7,550-530,650      $10,150-$41,050
25         561,300-$123,700    $30,650-$14,200     $41,050-$106,000
28         $123,700-$188,450   $74,200-8154,800    $106,000-$171,650
33         $188,450-$336,550   8154,800-$336,550   $111,650-5336,550
35         Over $336,550       Over $336,550       Over $336,550

Rate (%)   MFS                 Estates/Trusts

10         0-57,550            N/A
15         57,550-$30,650      0-$2,050
25         $30,650-$61,850     $2,050-$4,850
28         861,850-$94,225     $4,850-$7,400
33         894,225-$168,275    $7,400-$10,050
35         Over $168,275       Over $10,050

2006 standard deduction:

Filing status                  Amount
Single                         $5,150
MFJ or qualifying spouse with  $10,300
  dependent child
MFS                            $5,150
HOH                            $7,550

2006 personal exemption is $3,300, phaseouts:

                                                No exemption
Filing status              Phaseout threshold   if AGI exceeds

Single                     $150,500             $273,000
MFJ or qualifying spouse   $225,750             $348,250
  with dependent child
MFS                        $112,875             $114,125
HOH                        $188,150             $310,650

2006 annual gift tax exemption is $12,000

Source: Rev. Proc. 2005-70

Lesli S. Laffie, J.D., LL.M.