| Completax Planning, Inc. |
| 1100 Lincoln Avenue Suite 104 Napa, CA 94558 707-257-3995 800-244-3995 707-257-1306 fax |
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| JUNE 2007 NEWSLETTER |
| Previous Newsletter Issues |
Time to update some of the changes for
2007.
Mileage rates:
Business 48.5 cents/mile
Medical 20.0 cents/mile
Charitable 14.0 cents/mile
Standard deduction:
The standard deduction for 2007 is:
Single filing $ 5,350
Married, filing separate $ 5,350
Head of Household $ 7,850
Married, filing jointly $10,700
If over 65 or blind the amount is higher
for each filing status.
The exemption amount for 2007 is
increased to $3,400 per dependent.
You will lose part of the benefit of your
exemptions if your adjusted gross
income is above the phase out limits.
Retirement plan contributions:
Traditional IRA (under age 50) $4,000
Traditional IRA (over age 50) $5,000
Roth (under age 50) $4,000
Roth (over age 50) $5,000
There are some limitations to the above
maximum contributions due to adjusted
gross income levels.
SEP 25% of wages or
20% of SE income
401K (under age 50) $15,500
401K (over age 50) $20,500
2007.
Mileage rates:
Business 48.5 cents/mile
Medical 20.0 cents/mile
Charitable 14.0 cents/mile
Standard deduction:
The standard deduction for 2007 is:
Single filing $ 5,350
Married, filing separate $ 5,350
Head of Household $ 7,850
Married, filing jointly $10,700
If over 65 or blind the amount is higher
for each filing status.
The exemption amount for 2007 is
increased to $3,400 per dependent.
You will lose part of the benefit of your
exemptions if your adjusted gross
income is above the phase out limits.
Retirement plan contributions:
Traditional IRA (under age 50) $4,000
Traditional IRA (over age 50) $5,000
Roth (under age 50) $4,000
Roth (over age 50) $5,000
There are some limitations to the above
maximum contributions due to adjusted
gross income levels.
SEP 25% of wages or
20% of SE income
401K (under age 50) $15,500
401K (over age 50) $20,500
Charitable contributions
New recordkeeping requirements for
cash contributions. You cannot
deduct a cash contribution, regardless
of the amount, unless you keep a
record of the contribution (i.e., a
canceled check, a bank statement
containing name of charity, the date
and the amount)
Student Loan Interest Deduction
For 2007, the amount of the student
loan interest deduction is phased out if
you modified adjusted gross income is
between $55,000 and $70,000
(between $110,000 and $140,000 if
married filing jointly).
Long-Term Care Premiums
The maximum amount of qualified long-
term care premiums you can include
as medical expenses has increased.
The deduction is based on age. (For
age 51 – 60 - $1,110, 61 to 70 -
$2,950, age 71 and over - $3,680).
These are just a few of the changes
that seem to be common questions,
concerns to our clients. If you have
any specific questions please do not
hesitate to contact us by phone or e-
mail during the summer.
A personal note from Terry: As many
of you know, my daughter Molly
passed away on March 5th. It has
been an especially difficult time for my
wife, Nikki, and I and we want to
personally thank all for your support
and patience during this time.
New recordkeeping requirements for
cash contributions. You cannot
deduct a cash contribution, regardless
of the amount, unless you keep a
record of the contribution (i.e., a
canceled check, a bank statement
containing name of charity, the date
and the amount)
Student Loan Interest Deduction
For 2007, the amount of the student
loan interest deduction is phased out if
you modified adjusted gross income is
between $55,000 and $70,000
(between $110,000 and $140,000 if
married filing jointly).
Long-Term Care Premiums
The maximum amount of qualified long-
term care premiums you can include
as medical expenses has increased.
The deduction is based on age. (For
age 51 – 60 - $1,110, 61 to 70 -
$2,950, age 71 and over - $3,680).
These are just a few of the changes
that seem to be common questions,
concerns to our clients. If you have
any specific questions please do not
hesitate to contact us by phone or e-
mail during the summer.
A personal note from Terry: As many
of you know, my daughter Molly
passed away on March 5th. It has
been an especially difficult time for my
wife, Nikki, and I and we want to
personally thank all for your support
and patience during this time.