Tax Changes For Year 2005
There have been plenty of changes made for the year
2005. The following is a brief list of
some items that will hopefully enhance your year-round tax planning:
·
The standard mileage rate for cars used in:
o
Business 40.5
cents per mile
o
Charitable Travel 14.0 cents per mile
o
Medical Travel 15.0
cents per mile
·
The personal exemption increases to $3,200.
·
The social security taxable wage base increases to $90,000.
·
The voluntary elective deferral for 401(k) plans increases
to $14,000. The catch up provision for
those at least age 50 by the end of 2005 increases to $4,000.
·
The voluntary elective deferral for Simple IRA plans
increases to $10,000. The catch up
provision for those at least age 50 and over by the end of 2005 increases to
$2,000.
·
The contribution to a Traditional IRA increases to $4,000, and
the catch up provision for those at least age 50 by the end of 2005 is $500.
·
Effective January 1, 2005, the minimum wage in New York
State increases to $6 per hour.
·
Also, effective January 1, 2004, the New York State credit
for state unemployment against federal unemployment decreases, making the
federal unemployment rate 1.1% up from .8%.
If you have any questions regarding the above information,
please do not hesitate to contact us.
