Tax Facts at a Glance
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This information on this
page is
provided to assist businesses and individuals. It is
accurate to the best of our knowledge.
|
 |
|
However, nothing on this
page should be used to answer any particular financial question or
be considered professional advice.
|
|
Please
contact us for specific advice. |
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|
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20+ Common Questions Answered!
Read our Ask a CPA feature for general information on your taxes and
finances.
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Deductions
For the 2007 Tax Year
(see
below for 2008) |
|
|
Federal |
California |
|
Standard Deductions |
|
Single |
$5,350 |
$3,516 |
|
Married Filing Jointly or Surviving
Spouse
or Domestic Partner (California only) |
$10,700 |
$7.032 |
|
Married Filing Separately |
$5,350 |
$3,516 |
|
Head of Household |
$7,850 |
$7,032 |
|
Additional for 65 or Older or Blind -
Married |
$1,050 |
|
|
Additional for 65 and Older Blind -
Unmarried |
$1,250 |
|
|
Taxpayer claimed as a dependent
|
$850* on $300 + of earned income |
$850 |
|
Personal/Dependent Exemption
Social Security Number is required - $50 penalty |
$3,400
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Deductions
For the 2008 Tax Year
(see
above for 2007) |
| |
Federal |
California |
| Standard Deductions |
|
Single |
$5,450 |
Not yet
available |
| Married Filing Jointly or
Surviving Spouse |
$10,900 |
| Married Filing Separately |
$5,450 |
| Head of Household |
$8,000 |
| Additional for 65 or Older or
Blind - Married |
$1,050 |
| Additional for 65 and Older Blind
- Unmarried |
$1,350 |
| Taxpayer claimed as a dependent
|
$900 on $300 + of
earned income |
|
Personal/Dependent
Exemption
Social Security Number is required - $50 penalty |
$3,300 |
|
 |
|
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Automobile Standard
Mileage Allowances
|
|
|
2007 |
2008 |
|
Business |
48.5/mil |
.505/mile |
|
Charity |
.14/mile |
.14/mile |
|
Medical/Moving |
.20/mile |
.19/mile |
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California Credits
For the 2007 Tax Year
|
|
|
|
California |
|
California Exemption Credits |
|
Single/Separate or Head of Household |
|
$94 |
|
Joint/Surviving Spouse/Domestic Partner |
|
$188 |
|
Dependent |
|
$294 |
|
Blind or over 65 |
|
$94 |
|
Senior Head of Household Credit |
2% of California taxable income, maximum California AGI
of $60,791 maximum credit of $1,146 |
|
Joint Custody Head of Household
Credit -
and -
Dependent Parent Credit |
Each is 30% of net tax, with maximum credit of $374 |
|
Child and Dependent Care Credit
California
allows a percentage of federal credit based on the California
AGI .
California allows these credits: |
|
California
AGI from $0 to $40,000 |
|
50% |
|
California
AGI from $40,001 to $70,000 |
|
43 |
|
California
AGI from $70,001 to $100,000 |
|
34 |
|
California
AGI over $100,001 |
|
0% |
|
Renter's Credit |
|
Joint/Head-of-Household/Surviving Spouse
if AGI is below $66,544 |
|
$120 |
|
Single/Married Filing Separate if AGI
is below $33,272 |
|
$60 |
|
 |
|
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Tax Data 2007
for Tax Year 2007 unless otherwise indicated
|
| |
Federal |
California |
| Section 179
Deduction |
125,000 |
25,000 |
|
Beginning of
Personal Exemption Phase-out
Range based on Federal
AGI
|
| Single |
$156,400 |
California doesn't have Personal Exemptions which
are handled in the same way as the federal |
| Married Filing
Jointly |
$234,600 |
| Married Filing
Separately |
$117,300 |
| Head of Household |
$195,500 |
| Surviving Spouse |
$234,600 |
|
Beginning of
Itemized Deduction Phase-out
Range based on
AGI
|
| Single |
$156,400 |
$155,416 |
| Married Filing
Jointly/Surviving Spouse/Domestic Partner (for California only) |
$156,400 |
$310,837 |
| Married/Domestic
Partner (for California only) Filing
Separately |
$78,200 |
$155,416 |
| Head of Household |
$156,400 |
$233,129 |
| Rate Reduced over
federal
AGI
limits |
3% |
6% |
|
Schedule A
Threshold/Limits |
| Medical (of
AGI ) based on federal threshold |
7.5% |
Follows federal |
| Miscellaneous (of
AGI ) based on federal threshold |
2% |
|
Alternative Minimum
Tax (AMT) Rate |
|
AMTI Less Exemption up to $175,000 |
26% |
7% |
AMTI Less Exemption over $175,000
($87,500) if Married Filing Separately |
28% |
7% |
|
AMT Exemption
Amounts |
| Married Filing
Jointly/Surviving Spouse/Domestic Partner (for California only) |
$66,250 |
$70,531 |
| Single, Head of
Household |
$44,350 |
$52,898 |
| Married Filing
Separately, Estates and Trusts |
$33,125 |
$35,263 |
|
AMT Exemption
Phase-out Amounts |
| Married Filing
Jointly/Surviving Spouse |
$150,000 |
$264,488 |
| Single and Head of
Household |
$112,500 |
$198,366 |
| Married Filing
Separately/Domestic Partner Filing Separately (for California
only), Estates, and Trusts |
$75,000 |
$132,242 |
|
Self-Employed Health
Insurance
Adjustment for
AGI : |
| Percentage of total
qualifying payments for health insurance |
100% |
Follows federal |
|
Maximum Rate
SEP
-IRA
and Keogh Profit Sharing |
20% |
|
Beginning/Ending of
U.S. Savings Bond Interest Exclusion
Based on Modified
AGI
|
| Joint Return |
$98,400/ $128,400 |
Federal rules only |
| Unmarried |
$65,600/ $80,600 |
| Married/Domestic
Partner (for California only) Filing
Separately |
No
Exclusion |
|
California SDI
(Deductible as a tax for federal purposes. Amounts
paid to a voluntary program in lieu of the state programs are
not deductible, but may be creditable on Form 540 with
multiple employees.) |
| |
2007 |
2008 |
| Wages – Total annual
limit |
83,389 |
86,698 |
| Rate |
0.69% |
0.8% |
| Tax |
$500.33 |
$635.34 |
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|
Federal Tax Rate Schedule
2007
|
|
Taxable Income is Over |
But Not over |
Pay |
+ % |
Of the Amount Over |
|
Single Individuals |
|
$0 |
$7,825 |
$0 |
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 |
|
Unmarried
Head of Household |
|
$0 |
$11,200 |
$0 |
10% |
$0 |
|
$11,200 |
$42,650 |
$1,120 |
15% |
$11,200 |
|
$42,650 |
$110,100 |
$5,837.50 |
25% |
$42,650 |
|
$110,100 |
$178,350 |
$22,700 |
28% |
$110,100 |
|
$178,350 |
$349,700 |
$41,810 |
33% |
$178,350 |
|
$349,700 |
and more |
$98,355.50 |
35% |
$349,700 |
|
Married Individuals Filing Jointly and Qualifying widow(er) |
|
$0 |
$15,650 |
$0 |
10% |
$0 |
|
$15,650 |
$63,700 |
$1,565 |
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 |
$43,850.50 |
33% |
$195,850 |
|
$349,700 |
and more |
$94,601 |
35% |
$349,700 |
|
Married Individuals Filing Separately |
|
$0 |
$7,825 |
$0 |
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 |
$11,658.75 |
28% |
$64,250 |
|
$97,925 |
$174,850 |
$21,915.25 |
33% |
$97,925 |
|
$174,850 |
and more |
$47,300.50 |
35% |
$174,850 |
|
|
|
|
|
|
|
California Tax Rate Schedule
2007
|
|
Taxable Income is Over |
But Not over |
Pay |
+ % |
Of the Amount Over |
|
Single Individuals, Married/Domestic Partner Filing Separately, Fiduciary Tax
Returns |
|
$0 |
$6,827 |
$0 |
1% |
$0 |
|
$6,827 |
$16,185 |
$68.27 |
2% |
$6,827 |
|
$16,185 |
$25,544 |
$255.43 |
4% |
$16,185 |
|
$25,544 |
$35,460 |
$629.79 |
6% |
$25,544 |
|
$35,460 |
$44,814 |
$1,224.75 |
8% |
$35,460 |
|
$44,814 |
and more |
$1,973.07 |
9.3% |
$44,814 |
|
Married/Domestic Partner Filing Jointly, Qualifying Widow(er) |
|
$0 |
$13,654 |
$0 |
1% |
$0 |
|
$13,654 |
$32,370 |
$136.54 |
2% |
$13,654 |
|
$32,370 |
$51,088 |
$510.86 |
4% |
$32,370 |
|
$51,088 |
$70,920 |
$1,259.58 |
6% |
$51,088 |
|
$70,920 |
$89,628 |
$2,449.50 |
8% |
$70,920 |
|
$89,628 |
and more |
$3,946.14 |
9.3% |
$89,628 |
|
Unmarried Head of Household |
|
$0 |
$13,662 |
$0 |
1% |
$0 |
|
$13,662 |
$32,370 |
$136.62 |
2% |
$13,662 |
|
$32,370 |
$41,728 |
$510.78 |
4% |
$32,370 |
|
$41,728 |
$51,643 |
$885.10 |
6% |
$41,728 |
|
$51,643 |
$61,000 |
$1,480 |
8% |
$51,643 |
|
$61,000 |
and more |
$2,228.56 |
9.3% |
$61,000 |
|
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Luxury
Auto Depreciation Limit
|
|
Year |
1st Year |
2nd Year |
3rd Year |
4th Year |
| 2002 |
$3,060 |
$4,900 |
$2,950 |
$1,775 |
| 2003 |
$3,060 |
$4,900 |
$2,950 |
$1,775 |
| 2004 |
$2,960 |
$4,800 |
$2,850 |
$1,675 |
| 2005 |
$2,960 |
$4,700 |
$2,850 |
$1,675 |
| 2006 |
$2,960 |
$4,800 |
$2,850 |
$1,775 |
| 2007 |
$3,060 |
$4,900 |
$2,850 |
$1,775 |
|
|
|
|
|
FICA
and Self Employment Tax
2008 and 2007
|
|
|
2008 |
2007 |
|
Maximum FICA Tax Rate |
|
Wage Base (Income subject to Social
Security Tax) |
$102,000 |
$97,500 |
|
FICA Tax Rate |
6.2% |
6.2% |
|
SE Tax Rate |
12.4% |
12.4% |
|
Maximum Medicare |
|
HI Wage Base |
Unlimited |
Unlimited |
|
Medicare
HI Rate |
1.45% |
1.45% |
|
Medicare
HI Self-Employment Rate |
2.9% |
2.9% |
|
Maximum Total
FICA/Medicare or SE Tax |
Unlimited |
Unlimited |
|
Earned Income Ceilings for Social
Security Benefits |
|
Under age 65 (or full retirement age) |
$13,560 |
$12,960 |
|
65-70 (or full retirement age) |
Unlimited |
Unlimited |
|
Age 70 and older |
Unlimited |
Unlimited |
|
Medicare Part B Premium |
$96.40/month |
$93.50/month |
|
Surcharges may apply with incomes above |
|
married |
$164,000 |
$160,000 |
|
single |
$82,000 |
$80,000 |
|
|
|
|
|
|
|
|
2008 |
2007 |
|
Maximum 401(k)/403(b) Deferral |
$15,500 |
$15,500 |
|
Maximum Defined Contribution Plan
Contribution |
$46,000 |
$45,000 |
|
Maximum Annual Benefit for Defined
Benefit Plans |
$185,000 |
$180,000 |
|
Annual Compensation Limit for Computing
Plan Benefits |
$230,000 |
$225,000 |
|
Annual Compensation Limit for the
Definition of Highly Compensated Employee, Section 414 (q)
(1) |
$105,000 |
$100,000 |
|
Compensation Minimum for SEP coverage |
$500 |
$500 |
|
Maximum Contribution for
SIMPLES |
$10,500 |
$10,500 |
|
Catch-up Contribution (taxpayers 50 and
older)
Applies to deferral plans only |
$5,000 |
$5,000 |
|
Key Employee for Top Heavy Purposes
A "Key Employee" is one of these three: |
|
·
Officers earning over
|
$145,000 |
$130,000 |
|
·
A 5% Owner of Employer earning any
amount
|
|
·
A 1% Owner of Employer earning over
|
$150,000 |
$150,000 |
|
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Traditional and Roth
IRA's
2008 and 2007
|
|
|
2008 |
2007 |
|
Contribution Limit |
$5,000 |
$4,000 |
|
Catch-up Contribution (50 and older) |
$1,000 |
$1,000 |
|
IRA Deduction Phase-out for Special
Contributions |
|
Single |
$53,000 -
$63,000 |
$52,000 - $53,000 |
|
Married Filing Jointly |
$85,000 - $105,000 |
$83,000 - $103,000 |
|
IRA Deduction Phase-out for Spousal
Contributions |
|
Married Filing Separately |
$0, - $10,000 |
|
Married Filing Jointly |
$159,000 - $169,000 |
$156,000 - $166,000 |
|
Roth IRA Contribution |
|
Single |
$101,000 -
$106,000 |
$99,000 - $114,000 |
|
Married Filing Jointly |
$159,000 - $169,000 |
$156,000 - $166,000 |
|
Married Filing Separately |
$0 - $10,000 |
|
Roth IRA Conversion Phase-out |
|
Single |
$100,000 |
|
Married Filing Jointly |
$100,000 |
|
Married Filing Separately |
Ineligible |
|
|
|
|
Estate
and Gift Tax
Phase-out and Repeal of Estate and
Generation-Skipping Transfer Tax. |
|
Calendar Year |
Estate/GST tax
Death time transfer Exemption |
Highest estate and gift
tax rates |
| 2002 |
$1million/$1.1
million |
50% |
| 2003 |
$1million/$1.1
million |
49% |
| 2004 |
$1.5 million |
48% |
| 2005 |
$1.5 million |
47% |
| 2006 |
$2 million |
46% |
| 2007-08 |
$2 million |
45% |
| 2009 |
$3.5 million |
45% |
| 2010 |
Not applicable
(taxes repealed) |
Top individual
rate (gift tax only) |
|
Gift tax: Annual Gift
Limitation of $11,000 for 2002 and later years. Lifetime
Exemption of $1 million after December 31, 2001. |
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Education-Related Tax
Benefits 2007
Deduction
for Qualified Higher Education Costs |
| Filing Status |
Adjusted
Gross Income |
Maximum
deduction |
|
Single, head of household, qualifying widower |
<$65,000 |
$4,000 |
|
$65,000 - $80,000 |
$2,000 |
| over $80,000 |
$0 |
|
Married, filing jointly |
< $130,000 |
$4,000 |
| $130,000-
$160,000 |
$2,000 |
| over $160,000 |
$0 |
| |
|
Coverdell Education Savings
Accounts |
|
Annual Contribution Limit |
$2,000 |
|
Income Eligibility
|
|
Single |
$95,000 - $110,000 |
|
Married Filing Jointly |
$190,000
As a couple's income increases from $190,000 to $220,000,
their contribution limit phases out |
|
Student Loan Deductions
Deduct interest for the life of the
loan.
Beginning incoming Phase-Out range: |
|
Single |
$55,000 |
|
Married Filing Jointly |
$110,000 |
|
|
|
|
|
This information on this
page is
provided to assist businesses and individuals. It is
accurate to the best of our knowledge.
|
|
However, nothing on this
page should be used to answer any particular financial question or
be considered professional advice.
|
|
Please
contact us for specific advice.
|
|
