Quick Tax Facts

Standard Deduction

Single: $5,000
Head of Household: $7,300
Married Filing Joint: $10,000
Married Filing Separately: $5,000
Qualifying Widow/Widower: $10,000
Dependent: $600-$5,000*
Additional Amount if Blind: $1,000
Additional Amount if age 65 or older: $1,000
More information about the standard deduction and filing status.
* Dependents must calculate their standard deduction using an IRS Worksheet.

Personal Exemption

Per taxpayer and dependent: $3,200
More information about personal exemptions.

Phaseout of Personal Exemptions

The amount you can claim for personal exemptions starts to phase out once you reach certain income thresholds. If your income is within these ranges, your personal exemptions will be reduced. If your income exceeds the amounts listed below, your personal exemption is completely eliminated.

Single: $145,950 - $268,450
Head of Household: $182,450 - $304,950
Married Filing Joint: $218,950 - $341,450
Married Filing Separately: $109,475 - $170,725
Qualifying Widow/Widower: $218,950 - $341,450
More information about the personal exemptions.

Phaseout of Itemized Deductions

The dollar value of your itemized deductions begins to be reduced once your income reaches a certain threshold. Top quality tax software will help you accurately calculate your itemized deductions and any phaseouts. Phaseout begins at:
Single: $145,950
Head of Household: $145,950
Married Filing Joint: $145,950
Married Filing Separately: $72,975
Qualifying Widow/Widower: $145,950
More information about the itemized deductions.

Retirement Plan Limits

You can save for retirement up to the maximum dollar limit. Maximum contributions vary by the type of retirement plan:
Traditional or Roth IRA: $4,000 ($4,500 if age 50 or older)*
SEP IRA: $42,000**
SIMPLE IRA: $10,000 ($12,000 if age 50 or older)
401(k): $14,000 ($18,000 if age 50 or older)
403(b): $14,000 ($18,000 if age 50 or older)
Defined Contribution Pension: $42,000
Defined Benefit Pension: $170,000
More information about retirement planning.
*If you fund both a traditional and Roth IRA, your total contribution to cannot exceed $4,000 (or $4,500) combined.
**SEP IRA contributions are calculated on an IRS worksheet. Your maximum contribution may be less than $42,000.

Tax Rates for 2005