CCH Logo
Contact Us | CCH Online Store | Site Map    

  
navigation tabnavigation tab Home 
navigation tabnavigation tab About Us 
navigation tabnavigation tab Order Products 
navigation tabnavigation tab Press Center 
navigation tabnavigation tab Customer Service 
navigation tabnavigation tab Career Opportunities 
navigation tab
   HomePress CenterPress Releases
 
Press Releases
List By Date
Banking/Finance Institutions
Business Law
Corporate
Health Care and Entitlements
Human Resources
Securities
Tax
News Archives

For assistance with
stories, including
interviews with CCH
subject experts,
please contact
 
Eric Scott
847-267-2179
eric.scott@wolterskluwer.com

 

Contact Information

Leslie Bonacum
847-267-7153
mediahelp@cch.com
Neil Allen
847-267-2179
neil.allen@wolterskluwer.com

New Year Brings Tax Changes

(RIVERWOODS, ILL., January 9, 2006) – Annual inflation adjustments and scheduled increases will bring modest tax benefits to many taxpayers in 2006, according to CCH, a Wolters Kluwer business and a leading provider of tax and accounting law information, software and services (CCHGroup.com). But with the beginning of the new year, Congress has also heaped on special tax opportunities for energy conservation and an unwelcome helping of uncertainty to those subject to the alternative minimum tax (AMT).

Energy-Saving Credits – Beginning this year, individuals can earn tax credits based on purchases of energy-saving cars and home improvements.

AMT Uncertainty – At the start of 2006, the exemptions for the alternative minimum tax decreased from $58,000 to $45,000 for joint filers and from $40,250 to $33,750 for unmarried filers. Both the House and the Senate have passed AMT provisions that would preserve or increase the previous exemption amounts, but taxpayers who might be affected by the alternative minimum tax in 2006 will have to wait until Congress agrees on an amount – supposing that happens – to know how big a bite the AMT might take from their 2006 incomes.

Standard Deductions For 2006, the standard deduction increases to $10,300 for married couples filing jointly; $5,150 for single taxpayers or married taxpayers filing separately; and $7,550 for heads of households. The additional standard deduction for those ages 65 or older or who are blind remains at $1,000 for married individuals and surviving spouses, $1,250 for unmarried filers.

Personal ExemptionEach personal exemption will be worth $3,300 on 2006 returns.

Mileage Deductions The 2006 mileage deductions are 44.5 cents per mile for business use of a car; 18 cents per mile for medical or moving expenses; 14 cents per mile for charitable use. However, the rate for miles driven for charities providing Hurricane Katrina relief will be 32 cents per mile for deduction purposes and 44.5 cents per mile for reimbursement purposes.

IRA Contributions The amount you can contribute to a traditional or Roth IRA remains to be $4,000 per year.  The limit on additional annual “catch up” contributions for those age 50 and older increases to $1,000.

 IRA Phaseouts In 2006, the ability for those covered by a qualified plan to make a deductible contribution to an IRA will begin to phase out at $50,000 in adjusted gross income and end at $60,000 for single filers. For marrieds filing jointly, the phaseout range is $75,000 to $85,000.

 Contributions to 401(k)s, 403b and SEP Plans The annual limit on elective deferrals to 401(k), 403(b) and SEP plans increases to $15,000 for 2006.  The annual limit on “catch-up” contributions to these plans for those 50 and older increases to $5,000.

 FICA, Social Security Changes The FICA wage base increases to $94,200.  Workers under full retirement age who are receiving Social Security benefits can earn up to $12,480 in 2006, or $1,040 per month, without having their benefits reduced.

 Tax Brackets Increase Tax brackets have been adjusted for inflation to produce the following for 2006 :

Married Filing Jointly (& Surviving Spouse)

2006 Taxable Income

Tax Rate

$0-$15,100

10%

$15,100-$61,300

15%

$61,300-$123,700

25%

$123,700-$188,450

28%

$188,450-$336,550

33%

over $ 336,550

35%

Married Filing Separately

2006 Taxable Income

Tax Rate

$0-$7,550

10%

$7,550-$30,650

15%

$30,650-$61,850

25%

$61,850-$94,225

28%

$94,225-$168,275

33%

over $168,275

35%

Single Filers

2006 Taxable Income

Tax Rate

$0-$7,550

10%

$7,550-$30,650

15%

$30,650-$74,200

25%

$74,200-$154,800

28%

$154,800-$336,550

33%

over $ 336,550

35%

Head of Household

2006 Taxable Income

Tax Rate

$0-$10,750

10%

$10,750-$41,050

15%

$41,050-$106,000

25%

$106,000-$171,650

28%

$171,650-$336,550

33%

over $336,550

35%

About CCH, a Wolters Kluwer business

CCH, a Wolters Kluwer business (cchgroup.com) is a leading provider of tax, audit and accounting information, software and services. It has served tax, accounting and business professionals and their clients since 1913. Among its market-leading products are The ProSystem fx® Office, CCH® Tax Research NetWork™, Accounting Research Manager™ and the U.S. Master Tax Guide®. CCH is based in Riverwoods, Ill.

Wolters Kluwer is a leading multinational publisher and information services company. Wolters Kluwer has annual revenues (2004) of €3.3 billion, employs approximately 18,400 people worldwide and maintains operations across Europe, North America and Asia Pacific. Wolters Kluwer is headquartered in Amsterdam, the Netherlands (www.wolterskluwer.com). Its depositary receipts of shares are quoted on the Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.

-- ### --

nb-06-28

       


   © 2018, CCH INCORPORATED. All rights reserved.   

  Back to Top | Print this Page   
spacer