Retirement Limits
401(k)/403(b)/457 Elective Deferral Limit: $15500
401(k)/403(b)/457 Catch-Up Contribution Limit: $5000
SIMPLE Elective Deferral Limit: $10500 ($2500 catch-up)
Maximum Defined Contribution Pension Contribution: $46000
Defined Contribution Compensation Limit: $230000
Maximum Defined Benefit Pension: $185000
Highly-Compensated Employee: $105000
Key Employee: $150000
IRA Contribution Limit: $5000
IRA Catch-Up Contribution: $1000
Traditional IRA AGI Contribution Limits: $0-$10000 if No Pension/Not MFS, $53000-$63000 S w/pension, $85000-$105000 MFJ w/2 pensions, $159000-$169000 MFJ w/1 pension
Roth IRA AGI Contribution Limits: $101000-$116000 S/HH/QW, $159000-$169000 MFJ, $0-$10000 MFS
Roth IRA Conversion AGI Limit: $100,000
Saver's Credit AGI Limits: $53000 MFJ, $39750 HH, $26500 S
Social Security Taxable Wage Base: $102000
50% Social Security Benefit Taxation Threshold: $25000 Single, $32000 MFJ
85% Social Security Benefit Taxation Threshold: $34000 Single, $44000 MFJ
Extra Standard Deduction for Over 65 or Blind: $1350 Per Incident for Singles, $1050 Per Incident for MFJ
Business Related Limits
Mileage Rate: $0.505 Business, $.014 Charitable, $.019 Moving and Medical
Fringe Benefit Transit Pass Limit: $115 Per Month
Fringe Benefit Parking Pass Limit: $220 Per Month
Child Care Fringe Benefit Limit: $5000
179 Expensing Limit: $128000 in assets, phases out between $510000-$638000 in total assets
Housing Related Limits
Mortgage Acquisition Debt Limit: $1,000,000
Mortgage Home Equity Debt Limit: $100,000 (Diasallowed Under AMT)
Casualty and Theft Deduction Floor: 10% of AGI + $100 (Disallowed Under AMT)
IRA First Time Homebuyer Distribution Limit: $10000
Real Estate Passive Loss Limits: $25000 in Loss, Phases Out Between $100000-$150000 AGI
DC First Time Homebuyers Credit: $5000, Phases Out Between $70000-$90000 ($110000-$130000 MFJ)
Education Related Limits
Coverdell ESA Limits: $2000 Per Child, Phases Out Between $190,000-$220,000 MFJ (Half That for Others)
Tuition and Fee Deduction Limits: $4000 Limit, Disallowed After $160,000 AGI MFJ (Half That for Others)
Hope Credit: 100% of first $1200 in expenses, 50% of $1101-$2400
Lifetime Learning Credit: 20% of up to $10000 in expenses
Hope and Lifetime Learning Credits AGI Phaseout: $48000-$58000 ($96000-$116000 MFJ, $0 MFS)
Education Savings Bond Interest Exclusion Phaseout: $67100-$82100 ($100650-$130650 MFJ)
Student Loan Interest Limits: $2500 Interest Amount, Phases Out Between $115000-$145000 AGI ($55000-$70000 for non-MFJ, $0 for MFS)
Educator Expense Deduction: $250 Per Teacher
Child Related Limits
Personal Exemption:$3500
Personal Exemption Phaseout: $239950-$362450 MFJ/QW, $199950-$322450 HH, $159950-$282450 S, $119975-$181225 MFS
Child Tax Credit: $1000 Per Child, Phases Out at $110000 AGI MFJ/QW, $75000 S/HH, $55000 MFS
Refundable CTC Begins at $12050
Education Credit Phaseout: $94000-$114000 MFJ, $47000-$57000 others
Dependent Care Credit Expenditure Limit: $3000 for One Child, $6000 for Two Children
Child Care Fringe Benefit Limit: $5000
Adoption Credit Limit: $11650 Per Child, Phases Out Between $174730-$214730 AGI
Kiddie Tax Limit: $900
Dependent Standard Deduction: $900, or $300 Plus Earned Income
Health Care Related Limits
HSA Contribution Limit: $2900 single, $5800 family
Over 55 Catch-Up Contribution: $900
HDHP Deductible Minimum: $1100 Single, $2200 Family
HDHP Out of Pocket Max: $5600 Single, $11200 Family
Medical Expense Deduction Floor: 7.5% of AGI (10% if in AMT)
Long Term Care Insurance Premium Limit: <40=$310, 40-50=$580, 50-60=$1150, 60-70=$3080, 70<$3850
Miscellaneous Limits
Standard Deduction: $5450 S/MFS, $8000 HH, $10900 MFJ/QW
Itemized Deduction Phaseout (Pease): $159950 of AGI (Half for MFS)
Miscellaneous Itemized Deduction Floor: 2% of AGI (Disallowed Under AMT)
Capital Loss Limit: $3000
Gift Limit: $12000
Foreign Earned Income Exclusion: $87600
Death Tax Exemption: $2,000,000/45% Rate
Ex-pat Trigger: $139000
Earned Income Credit AGI Limits:
MFJ No Kids: $15880
MFJ 1 Kid: $36995
MFJ 2/More Kids: $41646
Others No Kids: $12880
Others 1 Kid: $33995
Others 2/More Kids: $38646
Max Investment Income for EIC: $2950
The mortgage interest deduction becomes signficantly more valuable once you enter the AMT exemption phaseout range, above roughly $150k gross income for a joint return. Once the AMT exemption starts to phase out, your AMT marginal rate is 1.25 times 26.5%, or 33.125%. If you are in the 28% AMT bracket (above $175 for joint returns), your AMT marginal rate jumps to 35%.
If you are actually liable for the AMT, your state income tax is not deductible at the margin and that tax rate adds directly to the federal rate. For example, in California you might face a 9.3% state tax rate plus the 33% to 35% federal AMT marginal rate. If you are paying AMT, your mortage interest could save you 44.3 cents on the dollar! That's probably much more tax savings than you expected.
Home mortgage (improvement and purchase) interest and charitable deductions are both significantly more valuable under than AMT than under the regular tax. They become, in effect, above-the-line deductions against a higher marginal rate.
Posted by: AMTbuff | 2007.11.13 at 06:30 PM