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Quick Summary of the 2006 Tax Law ChangesSection 179 Expenses: (1) Expense up to $108,000, (2) Phase out threshold begins at $430,000, (3) amounts increase to $112,000 in 2007 with phase out going to $450,000 Adoption Credit: (1) Credit for 2006 is $10,960 per adopted child, (2) Phase out of credit begins at $164,410, (3) Credit goes to $11,390 in 2007 with phase out going to $170,820 Alternative Minimum Tax (AMT) increases in 2006 Capital gains Rates remain at 5% and 15% through 2007 Child and Dependant Care Credits: (1) maximum credit in 2006 is 35% with reduced credits starting at $15,000 of AGI, (2) Amount of eligible expense is $3,000 for one child and $6,000 for two or more Child Tax Credit: (1) Credit is extended to 2010, (2) Credit is $1,000 per child, (2) Child Tax Credit is refundable to a certain extend. Personal Exemption Amount increased to $3,300 for 2006 and $3,400 for 2007. Phase out based on AGI is possible. Residential Energy credits available. See News section on this site. Social Security: (1) Maximum wages subject to Social Security Tax is increased to $94,200 in 2006 and $97,500 in 2007 |
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