Key 2007 Exemptions and Deductions

Listed here for your reference are key deduction rates for 2007.

Personal Exemptions

The personal exemption for each qualifying dependent increases by $100 for 2007.

  2007 2006
Exemption $3,400 $3,300

The exemption phases out by 2% for each $2,500 ($1,250 for married filing separately) by which your income is over:

  2007 Phase Out
Single $156,400
Married Filing Separately $117,300
Married Filing Jointly $234,600
Head of Household $195,500

2007 Alert: This phaseout amount is now reduced by 1/3 in 2007.

Standard Deductions

Standard deductions for those who do not itemize are as follows:

  2007 2006
Single $5,350 $5,150
Married Filing Separately $5,350 $5,150
Married Filing Joint $10,700 $10,300
Head of Household $7,850 $7,550

If 65 or over and/or blind add:

  2007 2006
Single/Head of Household $1,300 $1,250
Married/Surviving Spouse $1,050 $1,000

Itemized Deduction Phaseout

Deductions are reduced by 3% of every dollar of Adjusted Gross Income (AGI) over $156,400 ($78,200 if married filing separately) up to a maximum phaseout of 80% of your itemized deductions. Your medical expenses, investment interest, casualty losses and gambling losses are excluded.

2007 Alert: The phaseout amount noted above is now reduced by 1/3 in 2007.

Standard Mileage Rates

The standard mileage rates for 2007 are:

Mileage 2007 Rate/Mile
Business Travel $0.485
Medical/Moving $0.20
Charitable Work $0.14