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2007 TAX FACTS
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For 2007, the standard deduction is $5,350 for single individuals and to $10,700 for married couples. You'll benefit by itemizing once allowable deductions exceed the applicable standard deduction. Itemized deductions include medical expenses (over 7.5% of AGI), state and local income taxes (or sales taxes), real estate taxes, mortgage interest, charitable contributions, and unreimbursed employee business expenses.
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For 2007, the personal exemption is $3,400. You'll claim a personal exemption for yourself, your spouse, and each of your dependents.
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The maximum earnings subject to social security taxes is $97,500 in 2007 up from $94,200 in 2006.
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The standard mileage rate will be $.485 per business mile for 2007, up from .445 per business mile in 2006.
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The maximum annual contribution into a 401(k) plan or a 403(b) plan is $15,500 in 2007. And if you're 50 or older by December 31, 2007, you can contribute an extra $5,000 into your 401(k) or 403(b) account this year through salary deferrals.
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The maximum contribution into an IRA is $4,000 per individual for 2007. And if you're 50 or older, you can contribute an extra an extra $1,000 for 2007. You have until April 15, 2008 to contribute to your IRA for 2007.
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