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600 Main Street, Platte City, MO 64079 (816) 858-5100
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E-Mail:
Frank:
fdreiss@FerrinAccounting.com
Connie:
cplattner@FerrinAccounting.com
Dale:
daleferrin@excite.com
Or contact us at the following
Phone:
{816} 858-5100
Fax:
{816} 858-2199
FORMS TO DOWNLOAD:
[PDF Formats)
Summary A
Summary B
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Deductions….
The standard deduction for Married filers is $10,300 plus $1,000 for each one over age 65.
Single filers is $5,150 plus $1,300 if age 65. Household heads get $7,300 and $10,000 for qualified Widowers with child you’re finished writing your newsletter, convert it to a Web site and post it.
Filing Status…
No requirement to file a return, if your income is below the following amounts:
Status.........not 65 ......... Age 65 +
Single..........$ 8450.......... 9750
Married,(J)........16900..... 15600
Married, both 65 .............18900
M.F.S................ 5150....... 6450
Widower+Child..13600...14900
H.of H..............10850........11850
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Per Diem Rates?
A few changes again. The daily rate for meals and lodging is $99. Seperated the lodging is $60 and the meals and incidentals rate is $39.
Social Security Benefits…
Recipients will receive a benefit increase of 3.5%. However Medicare Part B premiums will rise to $93.50 per month.
Retirees between ages 62 and the 65+ full retirement age can have earned income of $12,480. Each $2 earned over this will reduce the benefits by $1.
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Mileage Rates?
Business mileage rates for year 2006 of 44.5¢ per mile increases to 48.5¢ for 2007. Just one set of rates so far in both years.
RATES as of.........Jan.1 2007
Business ................48.5¢
Charitable..............14.0¢
Medical...................22.0¢
Moving....................22.0¢
Katrina charity work...34.0¢
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Capital Gains…
Again in 2006 the maximum rate on long-term capital gains is still 15%, unless selling collectibles such as gold coins or antiques, the rate is 28%. Short-term gains (assets held under one year) are taxed at ordinary income tax rates, which can be high as 35%.
Dividends?
Dividends on investments may enjoy a special rate of 15% or less. To qualify must own the stock for 60 days before or after the normal dividend date.
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IRA Funding Limits?
If an active participant in an employer retirement plan with income under $50,000 for singles and under $80,000 for married filing joint, each can contribute up to $4,000 or $4,500 if 50 or older in 2006. The first 10,000 of income above these amounts, will be subject to the phase-out regs. Non-working Spousal IRAs are not subject to above income limits on working spouses, but have a phase-out starting at $150,000.
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Energy Credits?
Next year energy-savings home improvements may cut your tax bill. Can claim 10% of cost, up to $200 for windows or up to $500 on doors, furnaces or water heaters the are energy efficient. Electric or hybrid cars & SUV's may qualify for up to $2,600 credit.
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Social Security Tax…
The 2006 taxable base is $90,000 and the 2006 base wage will be $94,200 at the rate of 7.65%. Earnings above this base will be taxed at 1.45%.
Self-Employment tax will be 15.3% on the first 94,200 and 2.9% on balance of income.
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© Copyright 2006 FACTS
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