As of Oct. 18, 2006, Fast Tax Facts 2006.Welcome to our annual at-a-glance compilation Compiling a program. See compiler. of federal and state tax information. User-friendly user-friendly - Programmer-hostile. Generally used by hackers in a critical tone, to describe systems that hold the user's hand so obsessively that they make it painful for the more experienced and knowledgeable to get any work done. tax rate schedules, facts, figures and assorted data make this time-saving time-saving adj → que ahorra tiempo time-saving adj → qui fait gagner du temps time-saving time adj → section a handy companion. Keep it within arm's reach reach of the arm; the distance the arm can reach. See also: Arm as you enter the upcoming busy season. [ILLUSTRATION OMITTED] special thanks to: the CalCPA Committee on Taxation, especially John DiCarlo, CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. ; Ann ANN, Scotch law. Half a year's stipend over and above what is owing for the incumbency due to a minister's relict, or child, or next of kin, after his decease. Wishaw. Also, an abbreviation of annus, year; also of annates. In the old law French writers, ann or rather an, signifies a year. Ngo, CPA; Lisa Edeling, CPA; and the FTB FTB Franchise Tax Board (California; they collect income and sales tax) FTB Family Tax Benefit (Australian welfare assistance) FTB First Time Buyer (housing) for compiling com·pile tr.v. com·piled, com·pil·ing, com·piles 1. To gather into a single book. 2. To put together or compose from materials gathered from several sources: this information.
2006 TAX DATA SCHEDULE
2006 2006
Federal California
Standard Deductions
Single $5,150 $3,410
Married Filing Jointly, Surviving Spouse 10,300 6,820
Married Filing Separately 5,150 3,410
Head of Household 7,550 6,820
Additional for Age 65 and Older or 1,000
Blind -- Married
Additional for Age 65 and Older or 1,250
Blind -- Unmarried
(per individual for each situation,
age or blind)
Taxpayer Claimed as a Dependent 850 850
Personal or Dependent Exemption 3,300
(Social Security Number required)
California Exemption Credits
Single, Married Filing Separately, Head $91
of Household
Married Filing Jointly, Surviving Spouse 182
Dependent 285
Blind or Age 65 and Older 91
Senior Head of Household Credit
2% of California taxable income, maximum $1,111
California AGI of $58,963 with maximum
credit of
Joint Custody Head of Household Credit
and Dependent Parent Credit
Each is 30% of net tax with maximum $363
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
suspended for taxable years 2004,
2005, and 2006.
California Renter's Credit
Married Filing Jointly, Head of $120
Household, Surviving Spouse if AGI is $64,544
below
Single or Married Filing Separately if 60
AGI is below $32,272
IRC Sec. 179 Deduction $108,000 $25,000
Beginning of Personal Exemption Phaseout
Range -- Based on Federal AGI
Single $150,500 $150,743
Married Filing Jointly, Surviving Spouse 225,750 301,491
Married Filing Separately 112,875 150,743
Head of Household 188,150 226,119
Beginning of Itemized Deduction Phaseout
Range -- Based on Federal AGI
Single $150,500 $150,743
Married Filing Jointly, Surviving Spouse 150,500 301,491
Married Filing Separately 75,250 150,743
Head of Household 150,500 226,119
Rate Reduced over federal AGI limits 3% 6%
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
($87,500 if Married Filing Separately) 28%
AMTI Less Exemption 7%
AMT Exemption Amounts
Married Filing Jointly, Surviving Spouse $62,550 $73,916
Single, Head of Household 42,500 55,437
Married Filing Separately 31,275 36,956
Estate or Trust 22,500 36,956
AMT Exemption Phaseout Amounts
Married Filing Jointly, Surviving Spouse $150,000 $277,183
Single, Head of Household 112,500 207,888
Married Filing Separately, Estate or 75,000 138,591
Trust
Self-Employed Health Insurance Premiums
Adjustment for AGI, percentage of total 100% 100%
qualifying health insurance premiums
Auto Standard Mileage Allowances
Business .445 .445
Charity work -- general .14 .14
Charity work -- Hurricane Katrina .32 .32
Medical or moving .18 .18
U.S. Savings Bond Interest Exclusion
Phaseout Based on codified AGI
Joint Return $94,700/124,700
All Other Returns 63,100/78,100
California SDI
Federal tax deduction*
Annual wage limit $79,418
Rate 0.80%
Tax 635.34
*Amounts paid to a voluntary program in lieu of the state programs are
not deductible but may be a credit on California return.
2006 FEDERAL TAX RATE SCHEDULE
Taxable Of The
Income But Not Amount
Is Over Over Pay +% Over
Single
$0 $7,550 $0.00 10% $0
7,550 30,650 755.00 15% 7,550
30,650 74,200 4,220.00 25% 30,650
74,200 154,800 15,107.50 28% 74,200
154,800 336,550 37,675.50 33% 154,800
336,550 and more 97,653.00 35% 336,550
Head of Household
$0 $10,750 $0.00 10% $0
10,750 41,050 1,075.00 15% 10,750
41,050 106,000 5,620.00 25% 41,050
106,000 171,650 21,857.50 28% 106,000
171,650 336,550 40,239.50 33% 171,650
336,550 and more 94,656.50 35% 336,550
Married Filing Jointly or Qualifying Widow(er)
$0 $15,100 $0.00 10% $0
15,100 61,300 1,510.00 15% 15,100
61,300 123,700 8,440.00 25% 61,300
123,700 188,450 24,040.00 28% 123,700
188,450 336,550 42,170.00 33% 188,450
336,550 and more 91,043.00 35% 336,550
Married Filing Separately
$0 $7,550 $0.00 10% $0
7,550 30,650 755.00 15% 7,550
30,650 61,850 4,220.00 25% 30,650
61,850 94,225 12,020.00 28% 61,850
94,225 168,275 21,085.00 33% 94,225
168,275 and more 45,521.50 35% 168,275
Estate or Nongrantor Trust
$0 $2,050 $0.00 15% $0
2,050 4,850 307.50 25% 2,050
4,850 7,400 1,007.50 28% 4,850
7,400 10,050 1,721.50 33% 7,400
10,050 and more 2,596.00 35% 10,050
2006 STATE TAX RATE SCHEDULE
Taxable Of The
Income But Not Amount
Is Over Over Pay +% Over
Single, Married Filing Separately, Fiduciary Return
$0 $6,622 $0.00 1.0% $0
6,622 15,698 66.22 2.0% 6,622
15,698 24,776 247.74 4.0% 15,698
24,776 34,394 610.86 6.0% 24,776
34,394 43,467 1,187.94 8.0% 34,394
43,467 and more 1,913.78 9.3% 43,467
An additional 1% surcharge applies to taxable income in excess of $1
million.
Married Filing Jointly or Qualifying Widow(er)
$0 $13,244 $0.00 1.0% $0
13,244 31,396 132.44 2.0% 13,244
31,396 49,552 495.48 4.0% 31,396
49,552 68,788 1,221.72 6.0% 49,552
68,788 86,934 2,375.88 8.0% 68,788
86,934 and more 3,827.56 9.3% 86,934
An additional 1% surcharge applies to taxable income in excess of $1
million.
Head of Household
$0 $13,251 $0.00 1.0% $0
13,251 31,397 132.51 2.0% 13,251
31,397 40,473 495.43 4.0% 31,397
40,473 50,090 858.47 6.0% 40,473
50,090 59,166 1,435.49 8.0% 50,090
59,166 and more 2,161.57 9.3% 59,166
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
2005 2,960 4,700 2,850 1,675
2006 2,960 4,800 2,850 1,775
SOCIAL SECURITY & MEDICARE TAXES
2005 2006
Social Security Tax
Maximum wage base $90,000 $94,200
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 $12,000 $12,480
Full retirement age Unlimited Unlimited
Monthly Medicare Part B Premium $78.20 $88.50
RETIREMENT PLAN LIMITATIONS
2005 2006
Maximum 401(k) or 403(b) Deferral $14,000 $15,000
Maximum Defined Contribution Plan Contribution 42,000 44,000
Maximum Annual Benefit for Defined Benefit Plans 170,000 175,000
Annual Compensation Limit for Computing Plan 210,000 220,000
Benefits
Annual Compensation Limit for the
Definition of Highly Compensated Employee IRC 95,000 100,000
Section 414(q)
Compensation Minimum for SEP plan 450 450
Maximum Contribution for SIMPLE plan 10,000 10,000
Catch-up Contribution for 401(k) or 403(b) for 4,000 5,000
taxpayers age 50 and older
Catch-up Contribution for SIMPLE for taxpayers age 2,000 2,500
50 and older
Key Employee for Top Heavy Purposes:
* Officers Earning Over $135,000 $140,000
* A 5-percent Owner
* A 1-percent Owner Earning Over 150,000 150,000
TRADITIONAL & ROTH IRAS
2005 2006
Contribution Limit $4,000 $4,000
Catch-up Contribution age 50 and older 500 1,000
IRA Deduction Phaseout for Active Participants
Single $50,000-60,000
Married Filing Jointly 75,000-85,000
IRA Deduction Phaseout for Spousal
Contributions
Married Filing jointly 150,000-160,000
Roth IRA Contribution Phaseout
Single $95,000-110,000
Married Filing Jointly 150,000-160,000
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
$0-30,000 $0-22,500 $0-15,000 50%
30,000-32,500 22,500-24,375 15,000-16,250 20%
32,500-50,000 24,375-37,500 16,250-25,000 10%
Over 50,000 Over 37,500 Over 25,000 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
2006 2 million 46%
2007 2 million 45%
2008 2 million 45%
2009 3.5 million 45%
2010 Not applicable, Top individual rate under bill
taxes repealed (gift tax only)
Gift tax:
Annual Gift Limitation of $12,000 for 2006.
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 $2,000
Deduction phaseout based on modified AGI
Single $50,000-65,000
Married Filing Jointly $105,000-135,000
2005 EXPIRED ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. DEDUCTIONS The following deductions expired Dec. 31, 2005: * State and local sales taxes sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. * Qualified higher education expenses Qualified Higher Education Expense Expenses such as tuition and tuition related expenses that an individual, spouse, or child must pay to an eligible post-secondary institution. * Qualified teacher expenses * Clean-fuel vehicles Note: Effective Jan. 1, 2006, IRC (Internet Relay Chat) Computer conferencing on the Internet. There are hundreds of IRC channels on numerous subjects that are hosted on IRC servers around the world. After joining a channel, your messages are broadcast to everyone listening to that channel. Sec. 30C provides a tax credit for qualified alternative fuel vehicle Alternative fuel vehicle Conventional fuels such as gasoline and diesel are gradually being replaced by alternative fuels such as gaseous fuels (natural gas and propane), alcohol (methanol and ethanol), and hydrogen. refueling (QAFVR) property. The maximum credit is $1,000 for nondepreciable QAFVR property and the maximum credit is $30,000 for depreciable depreciable Of, relating to, or being a long-term tangible asset that is subject to depreciation. QAFVR property. VALUABLE PHONE NUMBERS Tax Practitioner practitioner /prac·ti·tion·er/ (prak-tish´un-er) one who has met the requirements of and is engaged in the practice of medicine, dentistry, or nursing. nurse practitioner see under nurse. Hotlines Hotlines was an American reality television series about adventures in exotic, fun hotspots. The series was hosted by Deirdre Delaney, Scott Gurney, Ivana Bozilovic and Stacy Kamano, the first two of whom were also its producers. IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. Priority Service (866) 860-4259 FTB (916) 845-7057 FTB Fax (916) 845-6377 EDD Noun 1. EdD - a doctor's degree in education DEd, Doctor of Education doctor's degree, doctorate - one of the highest earned academic degrees conferred by a university (888) 745-3886 BOE BOE Based on Experience BOE Board of Education BOE Boletín Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip (800) 401-3661 Application for Taxpayer ID Number Federal Form SS-4 (800) 829-4933 Federal Form SS-4 Fax (859) 669-5760 Federal Online: www.irs.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. EDD Form DE 1 (916) 654-8706 EDD Form DE 1 Fax (916) 654-9211 Fast Tax Facts is FACTS I Federal Agencies' Centralized Trial-Balance System designed to provide general guidance to CalCPA members. CalCPA is not engaged in rendering See render. (graphics, text) rendering - The conversion of a high-level object-based description into a graphical image for display. For example, ray-tracing takes a mathematical model of a three-dimensional object or scene and converts it into a bitmap image. 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 To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. a PDF (Portable Document Format) The de facto standard for document publishing from Adobe. On the Web, there are countless brochures, data sheets, white papers and technical manuals in the PDF format. . discuss tax topic To join CalCPA's TaxTalk Listserve, e-mail taxtalk-subscribe@yahoogroups.com. tax news Access tax news archives archives Repository for an organized body of records. Archives are produced or received by a public, semipublic, institutional, or business entity in the transaction of its affairs and are preserved by it or its successors. at www.calcpa.org/californiacpa. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion