2007 tax numbers

[Martha]

Social Security Taxable Wage Base $97,500

Medicare Taxable Wage Base No limit

Individual Retirement Accounts Lesser of $4,000 or 100% of earned income

Roth and traditional IRA additional annual “catch-up” contributions for account owners age 50 and older $1,000

Defined contribution plan dollar limit on additions to qualified plans, 403(b) plans and SEP plans $45,000
Maximum compensation used to determine contributions $225,000

Elective deferral limits for 401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs Lesser of $15,500 or 100% participant's compensation

Additional catch-up contributions (individuals age 50 or older) for 401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs $5,000

Elective deferral limits for SIMPLE 401(k) plans and SIMPLE IRA plans Lesser of $10,500 or 100% participant's compensation.

Additional catch-up contributions (individuals age 50 or older) for SIMPLE 401(k) plans and SIMPLE IRA plans $2,500

Compensation defining highly compensated employee $100,000

Compensation threshold used to determine a key employee in a top-heavy plan $1 for more than 5% owners; $145,000 for officers; $150,000 for more than

Compensation triggering Simplified Employee Pension (SEP) contribution requirement $500

Driving Deductions 2007:
Business mileage, cents per mile 48.5
Charitable mileage, cents per mile 14
Medical and moving mileage, cents per mile 20



Standard Deductions 2007
Married filing jointly or surviving spouse $10,700
single and married filing separately $5,350
Heads of Household $7,850


Itemized Deduction Phase-Out 2007
Married filing separately $78,200
Phase-out for all others $156,400

Personal Exemption
Amount $3,400

Kiddie Tax Net unearned income for an under-age-18 child that is not subject to the “kiddie tax” $1,700

Annual exclusion for gifts, Amount you can give to each recipient $12,000
​

 

[Martha]

Let me know if I made any mistakes.

I did not include the AMT exemption amount because odds are it will change before year end.

 

[REWahoo]

Martha, great summary. Only thing I didn't see the are the 2007 HSA contribution limits.

From the treasury.gov website:

Self-only HDHP coverage - contribution limit $2,850
Family HDHP coverage - contribution limit $5,650
2007 catch-up contribution - additional $800 per individual over age 55

 

[TeeRuh]

Question?

Itemized Deduction Phase-Out 2007

Married filing separately $78,200
Phase-out for all others $156,400​

Martha, I'm not familiar with the term "Itemized Deduction Phase-Out"; can you explain?

Thanks,
t.r.

 

[Martha]

Martha, I'm not familiar with the term "Itemized Deduction Phase-Out"; can you explain?

Thanks,
t.r.

Basically, what happens are your itemized deductions get reduced the higher your income. For 2007, deductions are reduced by 2% of AGI in excess of $156,400 for joint and single taxpayers. Last year, the phase out was even greater, running at a 3% rate. The phase out is being phased out.

 

[Martha]

Here are all the 2007 phase out amounts and rules: Tax Guide Online - Individuals

For example, personal exemptions are eliminated at high incomes. Also, the ability to deduct IRA contributions are eliminated at certain income levels, if you have a retirement plan available through work.

 

[TeeRuh]

Thanks! (Actually haven't been able to itemize for quite a few years so guess that's why I've not encountered this.)

t.r.