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iTax Tidbits |
Tax
Tidbits: The tax laws are massive and complicated; but
we'll keep this tiny corner updated with bits of useful or interesting information.
- The Wage base for Social Security tax for the year 2008 is $102,000.00 and the maximum Social Security tax is $6,324.00. (This does NOT include Medicare tax. There is no limit on wages for the Medicare tax.)
- The year 2007"Section 179" expensing
provision for smaller business is $125,000 and the phaseout threshold
begins if the cost of section 179 property placed in service during
the year exceeds $500,000.
- The pay-in limit for 401(k) retirement plans
is $15,500 for the year 2007, with an extra $5,000 for those age 50
by the end of this year. For SIMPLE's: $10,500 (and an extra $2,500
for age 50 and over).
- The earnings limit for Social Security beneficiaries
between ages 62 and 65 and eight months is $12,960. For each $2 above
that, $1 of benefits is lost.
- The mileage rate for business use of a car is $0.485 per mile in 2007. Medical mileage is limited to $0.20 and charitable mileage is limited to $0.14. (VA charitable mileage = $0.18.)
- The Kiddie Tax applies to children with unearned income under age 18 (changed from age 14 in previous years).
Compare your tax rate with the rates in 1913. If you're interested in seeing the first income tax form (Year 1913), click here. Check out the top tax bracket rate. (6% on income over $500,000.00)