Tax Facts
April 17, 2007, is the deadline for filing your 2006 tax return with the IRS. Below are some quick tax facts for 2006 that may be helpful references for you as you fill out your tax return. For more complete information, please visit www.irs.gov.
2006 Tax Brackets
Taxable Income |
Tax Rate |
$0 - $7,550 |
10% |
$7,550 - $30,650 |
15% |
$30,650 - $74,200 |
25% |
$74,550 - $154,800 |
28% |
$154,800 - $336,550 |
33% |
$336,550 + |
35% |
Taxable Income |
Tax Rate |
$0 - $15,100 |
10% |
$15,100 - $61,300 |
15% |
$61,300 - $123,700 |
25% |
$123,700 - $188,450 |
28% |
$188,450 - $336,550 |
33% |
$336,550 + |
35% |
Taxable Income |
Tax Rate |
$0 - $7,550 |
10% |
$7,550 - $30,650 |
15% |
$30,650 - $61,850 |
25% |
$61,850 - $94,225 |
28% |
$94,225 - $168,275 |
33% |
$168,275 + |
35% |
Taxable Income |
Tax Rate |
$0 - $10,750 |
10% |
$10,750 - $41,050 |
15% |
$41,050 - $106,000 |
25% |
$106,000 - $171,650 |
28% |
$171,650 - $336,650 |
33% |
$336,650 + |
35% |
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2006 Standard Deductions
Single |
$5,150 |
Head of Household |
$7,550 |
Married Filing Jointly/Qualifying Widow(er) |
$10,300 |
Married Filing Separately |
$5,150 |
Blind or age 65 – Single (not a surviving spouse) |
$6,400 |
Blind or age 65 – Head of Household (not a surviving spouse) |
$8,800 |
Blind or age 65 – Married Filing Jointly/Qualifying Widow(er) |
$11,300 |
Blind or age 65 – Married Filing Separately |
$6,150 |
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Adjusted Gross Income (AGI) Limitations for Itemized Deductions
All itemized deductions – except medical deductions, casualty losses, investment interest, and gambling losses (to offset winnings) – are reduced by 3% of the excess over the AGI limit or the lesser of 80% of the allowable deductions. Starting in 2006, the limitation is reduced every two years by one third.
Filing Status |
AGI Limit |
Married Filing Separately |
$75,250 |
All Others |
$150,500 |
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Standard Mileage Deductions
In addition to driving mileages, parking fees and transportation tolls are also deductible.
Travel Purpose |
2006 Deduction |
2007 Deduction* |
Deductible Business |
$0.445/mile |
$0.485/mile* |
Charitable |
$0.14/mile |
$0.14/mile* |
Travel for Katrina Relief |
$0.32/mile |
N/A after 2006 |
Medical |
$0.18/mile |
$0.20/mile* |
Moving |
$0.18/mile |
$0.20/mile* |
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Personal Exemptions
Qualifying dependents are children who are under the age of 19 or who are full-time students under the age of 24.
Each Dependent |
$3,300 |
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Exemption Phaseout Thresholds for High Income Individuals
For high income individuals, the personal exemption is reduced by 2% for each $2,500 of AGI over the following amounts. Starting in 2006, the limitation is reduced every two years by one third.
Filing Status |
Exemption Phaseout
Threshold (2006) |
Single |
$150,500 |
Head of Household |
$188,150 |
Married Filing Jointly/Qualifying Widow(er) |
$225,750 |
Married Filing Separately |
$112,500 |
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Kiddie Tax
If a child under the age of 18 has investment income of more than $1,700, the excess amount over $1,700 is taxed at the parents' top tax rate.
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Social Security
FICA applies to the first $94,200 (2006) or $97,500 (2007) that is earned. |
Type of Tax |
Tax Rate |
FICA – Employer and Employee |
6.2% |
Medicare* – Employer and Employee |
1.45% |
*There is no income cap limit for Medicare tax. |
Age |
Limit |
62-65 and 6 months |
$12,480 |
65 and 8 months and older |
No limit |
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Gift & Estate Taxes
2006 Gift Tax Exclusion (per donee) |
$12,000 |
2006 Estate Tax Exclusion |
$2,000,000 |
Maximum Estate and Gift Tax Rate |
50% |
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