2007 TAX INFORMATION

Personal Exemption	$3,400 per person (none if filing as a dependent).
Exemption Phaseout	Starts at $234,600 (MFJ), $195,500 (H of H), $156,400 (single), $117,300 (MFS).
Maximum Salary Deferrals	$15,500 for 401(k), 501(c), 457 and 403(b) plans. ($20,000 if over 50) $10,500 the Simple, $13,000 if 50 or older.
Max. Retirement Plan Contributions	IRA (Regular and Roth): $4,000; $5,000 if 50 or older Defined Contribution Plans: $45,000 Defined Benefit Plans: $180,000 Roth phaseout begins @ $99K AGI for Single; $156K for MFJ; $0 for MFS.
Standard Mileage Rates	Business: 48.5 cents; Charity 14 cents; Medical/Moving 20 cents
Itemized Deduction Phaseout	Starts at AGI over $156,400 (MFJ, H of H, S), $78,200 (MFS).
Social Security	7.65% (6.2 % SS +1.45 % Medicare) SS levied on first $97,500 in wages only ($6,045 max. SS paid by any individual). Household help: SS tax levied only after $1,500 paid.
Kiddie Tax (Children under 18)	First $850 not taxed; $850 to $1,700 at child's rate; over $1,700 at parents' rate.
Foreign Income Exclusion	$85,700.
Section 179 Limit	$125,000 max. aggregate, less phaseout as total 179 property placed in '07 exceeds $500,000.
Capital Gains Rates* *Non-collectables ("Collectables" are taxed at 28%.)	Assets held 1 year or less: taxed at ordinary income rates. Assets held more than 1 year: 15% for taxpayers in brackets higher than 15%, 5% for taxpayers in 15% or lower tax bracket.
Child Tax Credit	$1,000 for each child under age 17. Phaseout begins at $75K AGI for Single; $110K for MFJ and $55K for MFS.
AMT Rates	26% of income up to $175,000 ($87,500 (MFS)); 28% thereafter.
AMT Exemption	$33,750 (S, H of H); $45,000 (MFJ); $22,500 (MFS). Phaseout begins at $150K; $112.5K and $75K, respectively.
Dividend Income	5% for 10% and 15% income tax rate payers; 15% for taxpayers in brackets higher than 15%.
Annual Gift Exclusion	$12,000.
Estate Tax Exclusion	$2,000,000.
Retirement Plan Withdrawals Mandatory	Age 70-1/2.
Home Sale Exclusion	$250,000(S), $ 500,000 (MFJ).
ESTATES AND TRUSTS
If Taxable Income Is:	The Tax Is:
Not over $2,150	15% of taxable income.
Over $2,150 but not over $5,000	$323 plus 25% of the amount over $2,150.
Over $5,000 but not over $7,650	$1,035 plus 28% of the amount over $5,000.
Over $7,650 but not over $10,450	$1,777 plus 33% of the amount over $7,650.
Over $10,450	$2,701 plus 35% of the amount over $10,450.
MARRIED FILING JOINT/SURVIVING SPOUSE
If Taxable Income Is:	The Tax Is:
Not over $15,650	10% of taxable income.
Over $15,650 but not over $63,700	$1,565 plus 15% of the amount over $15,650.
Over $63,700 but not over $128,500	$8,773 plus 25% of the amount over $63,700.
Over $128,500 but not over $195,850	$24,973 plus 28% of the amount over $128,500.
Over $195,800 but not over $349,700	$43,831 plus 33% of the amount over $195,850.
Over $349,700	$94,601 plus 35% of the amount over $349,700.
* Standard deduction $ 10,700 (+$1,050 for each spouse age 65+or blind, $2,100 for each spouse age 65+and blind). * Standard deduction (SD) for the dependents is the greater of $850 or earned income plus $300 (not to exceed the SD for dependent's filing status). HEAD OF HOUSEHOLD
If Taxable Income Is:	The Tax Is:
Not over $11,200	10% of taxable income.
Over $11,200 but not over $42,650	$1,120 plus 15% of the amount over $11,200.
Over $42,650 but not over $110,100	$5,838 plus 25% of the amount over $42,650.
Over $110,100 but not over $178,350	$22,700 plus 28% of the amount over $110,100.
Over $178,350 but not over $349,700	$41,810 plus 33% of the amount over $178,350.
Over $349,700	$98,356 plus 35% of the amount over $349,700.
* Standard deduction $ 7,850 (+$1,300 for each spouse age 65+or blind, $2,600 for each spouse age 65+ and blind). * Standard deduction (SD) for the dependents is the greater of $850 or earned income plus $300 (not to exceed the SD for dependent's filing status). SINGLE
If Taxable Income Is:	The Tax Is:
Not over $7,825	10% of taxable income.
Over $7,825 but not over $31,850	$783 plus 15% of the amount over $7,825.
Over $31,850 but not over $77,100	$4,386 plus 25% of the amount over $31,850.
Over $77,100 but not over $160,850	$15,699 plus 28% of the amount over $77,100.
Over $160,850 but not over $349,700	$39,149 plus 33% of the amount over $160,850.
Over $349,700	$101,469 plus 35% of the amount over $349,700.
* Standard deduction $ 5,350 (+$1,300 for each spouse age 65+or blind, $2,600 for each spouse age 65+ and blind). * Standard deduction (SD) for the dependents is the greater of $850 or earned income plus $300 (not to exceed the SD for dependent's filing status). MARRIED FILING SEPARATE RETURNS
If Taxable Income Is:	The Tax Is:
Not over $7,825	10% of taxable income.
Over $7,825 but not over $31,850	$783 plus 15% of the amount over $7,825.
Over $31,850 but not over $64,250	$4,386 plus 25% of the amount over $31,850.
Over $64,250 but not over $97,925	$12,486 plus 28% of the amount over $64,250.
Over $97,925 but not over $174,850	$21,915 plus 33% of the amount over $97,925.
Over $174,850	$47,301 plus 35% of the amount over $174,850.
* Standard deduction $ 5,350 (+ $1,050 for each spouse age 65+or blind, $2,100 for each spouse age 65+ and blind). * Standard deduction (SD) for the dependents is the greater of $850 or earned income plus $300 (not to exceed the SD for dependent's filing status). CORPORATE TAX RATES
If Taxable Income Is:	The Tax Is:
$0 to $50,000	15%
Over $50,000 but not over $75,000	$7,500 plus 25% of excess over $50,000.
Over 75,000 but not over $100,000	$13,750 plus 34% of amount over $75,000.
Over $100,000 but not over $335,000	$22,250 plus 39% of the amount over $100,000.
Over $335,000 but not over $10,000,000	$113,900 plus 34% of the amount over $335,000.

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This article originally appeared in The Business Owner Journal, the periodical of choice for owners of small and midsize private businesses. All rights reserved, D.L. Perkins LLC. © 2010.

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