| 2006 Tax Updates at a Glance |
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Some recent tax law changes are effective for the
2006 Tax Year. If these items affect you, be sure to
mention them during your appointment.
Standard Mileage Rates
The Standard Mileage Rate allowed for business expenses is 44.5
cents a mile.
The Standard Mileage Rate allowed for medical purposes is 18 cents
a mile.
The Standard Mileage Rate allowed for moving (relocating)
purposes is also 18 cents a mile.
Retirement Savings Plans
You may be able to take an IRA deduction if you were covered by a
retirement plan, your modified adjusted gross income is less than
$85,000, and you are Married Filing Jointly.
If you are age 50 or older at the end of 2006, the amount that you
may be able to deduct as an IRA contribution is raised to $5,000.
A 401(k) or 403(b) plan can include a qualified Roth contribution
program. Under the program, designated Roth contributions are
treated as elected deferrals, except that the contribution is included
in income. A qualified distribution from a Roth account is not
included in income.
Certain Increases in Tax Items
You are allowed a $3,300 deduction for each exemption to which
you are entitled.
The adoption credit and the maximum exclusion from income of
benefits under an employer’s adoption assistance program are
increased to $10,960.
You may be able to claim a new tax credit for the purchase of
qualified energy efficiency improvements to your existing home. You
may be able to claim a tax credit for the purchase of solar water
heating, photovoltaic equipment, or fuel cell property.
For business and other tax updates, schedule an
appointment with us to go over new and existing tax
laws. We ask that our current clients please inform us
of any changes. We need to hear from you as early as
possible so that we can provide the best tax services
that are advantageous to you, our client.
2006 Tax Year. If these items affect you, be sure to
mention them during your appointment.
Standard Mileage Rates
The Standard Mileage Rate allowed for business expenses is 44.5
cents a mile.
The Standard Mileage Rate allowed for medical purposes is 18 cents
a mile.
The Standard Mileage Rate allowed for moving (relocating)
purposes is also 18 cents a mile.
Retirement Savings Plans
You may be able to take an IRA deduction if you were covered by a
retirement plan, your modified adjusted gross income is less than
$85,000, and you are Married Filing Jointly.
If you are age 50 or older at the end of 2006, the amount that you
may be able to deduct as an IRA contribution is raised to $5,000.
A 401(k) or 403(b) plan can include a qualified Roth contribution
program. Under the program, designated Roth contributions are
treated as elected deferrals, except that the contribution is included
in income. A qualified distribution from a Roth account is not
included in income.
Certain Increases in Tax Items
You are allowed a $3,300 deduction for each exemption to which
you are entitled.
The adoption credit and the maximum exclusion from income of
benefits under an employer’s adoption assistance program are
increased to $10,960.
You may be able to claim a new tax credit for the purchase of
qualified energy efficiency improvements to your existing home. You
may be able to claim a tax credit for the purchase of solar water
heating, photovoltaic equipment, or fuel cell property.
For business and other tax updates, schedule an
appointment with us to go over new and existing tax
laws. We ask that our current clients please inform us
of any changes. We need to hear from you as early as
possible so that we can provide the best tax services
that are advantageous to you, our client.
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| The Bottom Line Financial Services, Inc. Your Mortgage and Tax Professionals 258 South 11th Street Phone: 215.238.0230 Fax: 215.238.0240 TheBottomLine@TheBottomLineInc.net |
