Quick Tax Facts

Important Tax Figures for 2007

Standard Deduction

Single: $5,350
Head of Household: $7,850
Married Filing Joint: $10,700
Married Filing Separately: $5,350
Qualifying Widow/Widower: $10,700
Dependent: $850-$5,350*
Additional Amount if Blind: $1,050
Additional Amount if age 65 or older: $1,050
More information about the standard deduction.
* Dependents must calculate their standard deduction using an IRS Worksheet.

Personal Exemption

Per taxpayer and dependent: $3,400
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: $156,400 - $278,900
Head of Household: $195,500 - $318,000
Married Filing Joint: $234,600 - $357,100
Married Filing Separately: $117,300 - $178,550
Qualifying Widow/Widower: $234,600 - $357,100
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: $156,400
Head of Household: $156,400
Married Filing Joint: $156,400
Married Filing Separately: $78,200
Qualifying Widow/Widower: $156,400
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 ($5,000 if age 50 or older)*
SEP IRA: $45,000**
SIMPLE IRA: $10,500 ($13,000 if age 50 or older)
401(k) plan: $15,500 ($20,500 if age 50 or older)
403(b) plan: $15,500 ($20,500 if age 50 or older)
457 plan: $15,500 ($20,500 if age 50 or older)
Defined Contribution Pension: $45,000
Defined Benefit Pension: $180,000
More information about retirement planning.
*If you fund both a traditional and Roth IRA, your total contribution to cannot exceed $4,000 (or $5,000) combined.
**SEP IRA contributions are calculated on an IRS worksheet. Your maximum contribution may be less than $45,000.

More 2007 Tax Information

Tax Rates for 2007
Standard Mileage Rate for 2007

_{Source: Internal Revenue Service, Revenue Procedure 2006-53 and IR-2006-162.}