Adjustments for inflation are made to various tax numbers each year, and tax laws with phase-in and phase-out provisions cause some numbers to change annually. The numbers for 2004 in the chart below apply to your 2004 returns, and the numbers for 2005 should be used in your 2005 tax planning.
– 2005– – 2004–
* Standard deduction
* Single $5,000 $4,850
* Married filing jointly 10,000 9,700
* Married filing separately 5,000 4,850
* Head of household 7,300 7,150
* Additional deduction –
Single 65 and older/blind $1,250 $1,200
Married 65 and older/blind 1,000 950
* Personal exemption $3,200 $3,100
* Personal exemption phase-out (AGI)
* Single $145,950-268,450 $142,700-265,200
* Joint returns & surviving spouses 218,950-341,450 214,050-336,550
* Married filing separately 109,475-170,725 107,025-168,275
* Head of household 182,450-304,950 178,350-300,850
* Limit on itemized deductions (AGI)
* Single/joint/head of household $145,950 $142,700
* Married filing separately 72,975 71,350
* Adoption credit $10,630 $10,390
* Kiddie tax threshold $1,600 $1,600
* Nanny tax threshold $1,400 $1,400
* Social security tax wage base $90,000 $87,900
* Medicare tax wage base No limit No limit
* Social security earnings limit
* Under age 65 $12,000 $11,640
* Age 65 and over No limit No limit