As of Oct. 17, 2007, Fast Tax Facts 2007.Welcome to California CPA's annual at-a-glance compilation of federal and state tax information. User-friendly tax rate schedules, facts, figures and assorted data make this section a handy companion. Keep it within arm's reach as you enter busy season. [ILLUSTRATION OMITTED] special thanks to: The CalCPA Committee on Taxation, Chair Daniel Crosbie; John DiCarlo, CPA; Ann Ngo, CPA; and Rebecca Christiansen for compiling this information.
2007 TAX DATA SCHEDULE
2007 2007
Federal California
Standard Deductions
Single $5,350 $3,516
Married Filing Jointly, Surviving 10,700 7,032
Spouse
Married Filing Separately 5,350 3,516
Head of Household 7,850 7,032
Additional for Age 65 and Older or 1,050
Blind -- Married
Additional for Age 65 and Older or 1,300
Blind -- Unmarried
(per individual for each
situation, age or blind)
Taxpayer Claimed as a Dependent 850 850
Personal or Dependent Exemption 3,400
(Social Security Number required)
California Exemption Credits
Single, Married Filing Separately, $94
Head of Household
Married Filing Jointly, Surviving 188
Spouse
Dependent 294
Blind or Age 65 and Older 94
Senior Head of Household Credit
2% of California taxable income, $1,146
maximum California AGI of $60,791
with maximum credit of
Joint Custody Head of Household
Credit and Dependent Parent Credit
Each is 30% of net tax with $374
maximum credit of
Child and Dependent Care Credit
Percentage of federal credit for
California AGI limits
$0-40,000 50%
40,001-70,000 43%
70,001-100,000 34%
100,001 or more 0%
Teacher's Retention Credit
This California tax credit has
been repealed effective for years
beginning on or after Jan. 1,
2007.
California Renter's Credit
Married Filing Jointly, Head of $120
Household, Surviving Spouse if
AGI is below $66,544
Single or Married Filing Separately 60
if AGI is below $33,272
IRC Sec. 179 Deduction $125,000 $25,000
Beginning of Personal Exemption
Phaseout Range -- Based on Federal
A GI
Single $156,400 $155,416
Married Filing Jointly, Surviving 234,600 310,837
Spouse
Married Filing Separately 117,300 155,416
Head of Household 195,500 233,129
Beginning of Itemized Deduction
Phaseout Range -- Based on Federal
AGI
Single $156,400 $155,416
Married Filing Jointly, Surviving 156,400 310,837
Spouse
Married Filing Separately 78,200 155,416
Head of Household 156,400 233,129
Rate Reduced over federal AGI 3% 6%
limits
Schedule A Medical Deduction
Based on federal AGI 7.5% 7.5%
Schedule A Miscellaneous Deduction
Based on federal AGI 2% 2%
Alternative Minimum Tax (AMT) Rate
AMTI Less Exemption up to $175,000 26%
AMTI Less Exemption over $175,000 28%
($87,500 if Married Filing
Separately)
AMTI Less Exemption 7%
AMT Exemption Amounts
Married Filing Jointly, Surviving $45,000 $76,207
Spouse
Single, Head of Household 33,750 57,156
Married Filing Separately 22,500 38,102
Estate or Trust 22,500 38,102
AMT Exemption Phaseout Amounts
Married Filing Jointly, Surviving $150,000 $285,776
Spouse
Single, Head of Household 112,500 214,333
Married Filing Separately, Estate 75,000 142,887
or Trust
Self-Employed Health Insurance
Premiums
Adjustment for AGI, percentage of 100% 100%
total qualifying health insurance
premiums
Auto Standard Mileage Allowances
Business .485 .485
Charity work -- general .14 .14
Medical or moving .20 .20
U.S. Savings Bond Interest
Exclusion Phaseout Based on
codified AGI
Joint Return $98,400-128,400
All Other Returns 65,600-80,600
California SDI
Federal tax deduction*
Annual wage limit $83,389
Rate 0.60%
Tax 500.33
*Amounts paid to a voluntary program in lieu of the state programs are
not deductible, but may be a credit on California return.
2007 FEDERAL TAX RATE SCHEDULE
Taxable But Of The
Income Not Amount
Is Over Over Pay +% Over
Single
$0 $7,825 $0.00 10% $0
7,825 31,850 782.50 15% 7,825
31,850 77,100 4,386.25 25% 31,850
77,100 160,850 15,698.75 28% 77,100
160,850 349,700 39,148.75 33% 160,850
349,700 and more 101,469.25 35% 349,700
Head of Household
$0 $11,200 $0.00 10% $0
11,200 42,650 1,120.00 15% 11,200
42,650 110,100 5,837.50 25% 42,650
110,100 178,350 22,700.00 28% 110,100
178,350 349,700 41,810.00 33% 178,350
349,700 and more 98,355.50 35% 349,700
Married Filing Jointly or Qualifying Widow(er)
$0 $15,650 $0.00 10% $0
15,650 63,700 1,565.00 15% 15,650
63,700 128,500 8,772.50 25% 63,700
128,500 195,850 24,972.50 28% 128,500
195,850 349,700 43,830.50 33% 195,850
349,700 and more 94,601.00 35% 349,700
Married Filing Separately
$0 $7,825 $0.00 10% $0
7,825 31,850 782.50 15% 7,825
31,850 64,250 4,386.25 25% 31,850
64,250 97,925 12,486.25 28% 64,250
97,925 174,850 21,915.25 33% 97,925
174,850 and more 47,300.50 35% 174,850
Estate or Nongrantor Trust
$0 $2,150 $0.00 15% $0
2,150 5,000 322.50 25% 2,150
5,000 7,650 1,035.00 28% 5,000
7,650 10,450 1,777.00 33% 7,650
10,450 and more 2,701.00 35% 10,450
2007 STATE TAX RATE SCHEDULE
Taxable But Of The
Income Not Amount
Is Over Over Pay +% Over
Single, Married Filing Separately, Fiduciary Return
$0 $6,827 $0.00 1.0% $0
6,827 16,185 68.27 2.0% 6,827
16,185 25,544 255.43 4.0% 16,185
25,544 35,460 629.79 6.0% 25,544
35,460 44,814 1,224.75 8.0% 35,460
44,814 and more 1,973.07 9.3% 41,814
An additional 1% surcharge applies to taxable income in excess of $1
million.
Married Filing Jointly or Qualifying Widow(er)
$0 $13,654 $0.00 1.0% $0
13,654 32,370 136.54 2.0% 13,654
32,370 51,088 510.86 4.0% 32,370
51,088 70,920 1,259.58 6.0% 51,088
70,920 89,628 2,449.50 8.0% 70,920
89,628 and more 3,946.14 9.3% 89,628
An additional 1% surcharge applies to taxable income in excess of $1
million.
Head of Household
$0 $13,662 $0.00 1.0% $0
13,662 32,370 136.62 2.0% 13,662
32,370 41,728 510.78 4.0% 32,370
41,728 51,643 885.10 6.0% 41,728
51,643 61,000 1,480.00 8.0% 51,643
61,000 and more 2,228.56 9.3% 61,000
An additional 1% surcharge applies to taxable income in excess of $1
million.
LUXURY AUTO LIMIT
Taxpayer leasing so-called "luxury" autos needs to add back an amount to
income to offset the full deduction of the lease payments.
Year First Second Third Thereafter
2006 2,960 4,800 2,850 1,775
2007 3,060 4,900 2,850 1,775
SOCIAL SECURITY & MEDICARE TAXES
2006 2007
Social Security Tax
Maximum wage base $94,200 $97,500
Social Security rate -- employee 6.2% 6.2%
Social Security rate -- self-employed 12.4% 12.4%
Medicare Tax
Maximum wage base Unlimited Unlimited
Medicare rate -- employee 1.45% 1.45%
Medicare rate -- self-employed 2.9% 2.9%
Earned Income Ceilings for Social Security Benefits
Under full retirement age $12,480 $12,960
Full retirement age Unlimited Unlimited
Monthly Medicare Part B Premium $88.50 $93.50
RETIREMENT PLAN LIMITATIONS
2006 2007
Maximum 401(k) or 403(b) Deferral $15,000 $15,500
Maximum Defined Contribution Plan 44,000 45,000
Contribution
Maximum Annual Benefit for Defined Benefit 175,000 180,000
Plans
Annual Compensation Limit for Computing 220,000 225,000
Plan Benefits
Annual Compensation Limit for the 100,000 100,000
Definition of Highly Compensated
Employee IRC Section 414(q)
Compensation Minimum for SEP plan 450 500
Maximum Contribution for SIMPLE plan 10,000 10,500
Catch-up Contribution for 401(k) or 403(b) 5,000 5,000
for taxpayers age 50 and older
Catch-up Contribution for SIMPLE for 2,500 2,500
taxpayers age 50 and older
Key Employee for Top Heavy Purposes:
* Officers Earning Over $140,000 $145,000
* A 5-percent Owner or a 1-percent Owner 150,000 150,000
Earning Over
TRADITIONAL & ROTH IRAs
2006 2007
Contribution Limit $4,000 $4,000
Catch-up Contribution age 50 and older 1,000 1,000
IRA Deduction Phaseout for Active
Participants
Single $50,000-60,000
Married Filing Jointly 80,000-100,000
IRA Deduction Phaseout for Spousal
Contributions
Married Filing jointly 150,000-160,000
Roth IRA Contribution Phaseout
Single $99,000-114,000
Married Filing Jointly 156,000-166,000
Married Filing Separately 0-10,000
Roth IRA Conversion Phaseout
Single $100,000
Married Filing Jointly 100,000
Married Filing Separately Ineligible
IRA & PENSION CREDIT
Tax Credit Rate applied to maximum contribution of $2,000 Based on AGI
for various pension/IRA plans
Joint Filers Heads of Household All Other Filers Credit Rate
$0-31,000 $0-23,250 $0-15,500 50%
31,001-34,000 23,251-25,500 15,501-17,000 20%
34,001-52,000 25,501-39,000 17,001-26,000 10%
Over 52,000 Over 39,000 Over 26,000 0%
ESTATE AND GIFT TAX
Phaseout and Repeal of Estate and Generation-Skipping Transfer Taxes
Calendar Estate/GST tax Highest estate
Year transfer exemption and gift tax rate
2007 2 million 45%
2008 2 million 45%
2009 3.5 million 45%
2010 Not applicable, Top individual rate
taxes repealed under bill (gift tax only)
Gift tax:
Annual Gift Limitation of $12,000 for 2007.
Lifetime Exemption of $1 million after Dec. 31, 2001.
EDUCATION-RELATED TAX BENEFITS
Coverdell Educational Savings Accounts
Annual Contribution Limit $2,000
Contribution Phaseout based on modified AGI
Single $95,000-110,000
Married Filing Jointly 190,000-220,000
Student Loan Interest Deduction
Maximum interest deduction $2,500
Deduction phaseout based on modified AGI
Single $55,000-70,000
Married Filing Jointly $110,000-140,000
2006 EXPIRED DEDUCTIONS The following deductions expired Dec. 31, 2006: * Relief for Hurricanes Katrina, Rita and Wilma * Qualified electric vehicle credit VALUABLE PHONE NUMBERS TAX PRACTITIONER HOTLINES IRS Priority Service (866) 860-4259 FTB (916) 845-7057 FTB Fax (916) 845-6377 EDD (888) 745-3886 BOE (800) 401-3661 APPLICATION FOR TAXPAYER ID Federal Form SS-4 (800) 829-4933 Federal Form SS-4 Fax (859) 669-5760 Federal Online: www.irs.gov EDD Form DE 1 (916) 654-8706 EDD Form DE 1 Fax (916) 654-9211 Fast Tax Facts is designed to provide general guidance to CalCPA members. CalCPA is not engaged in rendering accounting or other professional advice. Numbers in Fast Tax Facts are subject to change. The online version of Fast Tax Facts will be updated for tax law changes. Check it out at www.calcpa.org/fasttaxfacts. want it to go? Log on to www.calcpa.org/fasttaxfacts and download a PDF. discuss tax topics To join CalCPA's TaxTalk Listserve, e-mail taxtalk-subscribe@yahoogroups.com tax news Access tax news archives at www.calcpa.org/californiacpa. |
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