|
 |
|
TurboTax Business
+ QuickBooks
+ Help to Set-up
=
Save Money
Year after Year |
|
|
Best
Sellers!
$11.87
|
Payroll tax Social Security Fica and Futa Limit
|
|
Quicken
Deluxe
2008
|
Buy
Now
$44.99
|
|
Personal Finance made easy
Pay bills with checks or
online, create family budgets, download bank transactions,
track tax data, monitor net worth and asset allocation, plan
for retirement, college or new home, find hidden tax
deductions
|
|
Quicken
Premier
2008 |
Buy
Now
$$71.99
(after rebate) |
|
Same great features as
Quicken Deluxe Plus
Analyze investments;
Investment tutorials; Tools to minimize capital gains tax;
Morningstar ratings on your funds; Generate schedule A, B, D
tax reports.
|
|
Same great features
|
|
Quicken
2008
Home & Business
for Schedule C filers |
Buy
Now
$79.99
|
|
Same great features as
Quicken Deluxe and Quicken Premier Plus
Create & customize
estimates & invoices; generate business reports; track
mileage; track multiple jobs per customer; accounts receivable
reports; track accounts payable; guidance for starting &
running a business.
|
Best Sellers!
$11.87
$11.87
Hidden Financial Risk
Understanding
Off-Balance Sheet Accounting
$27.17
Explains methods by debt is hidden and the failure by
management and auditors and investors to detect and eliminate
these tools of deception
|
FICA Tax (941
Tax)
limit - Fica Limit
|
|
Social Security tax includes FICA
6.2% and Medicare 1.45%. The FICA tax limit (Social Security)
changes annually. The Medicare tax has no limit. Employer FICA
tax and Employee FICA have the same limits. Both FICA tax rate
(6.2%) and Medicare tax rate (1.45%) as a rule do not change.
In addition to FICA tax limit and Social Security Limit, other tax
limits and tax rate (s) can be found on this webpage. |
|
2004
Social Security Wage Base
limit
2005
Social security Wage Base
limit- NEW 2004 Medicare Wage Base limit
2005 Medicare Wage Base limit
top |
$ 87,900
$ 90,000Unlimited
Unlimited |
|
|
|
|
FUTA Tax (940)
limit |
|
2004 Federal Unemployment
limit |
$ 7,000 |
|
Shortcuts, tips, resources for payroll taxes and human
resources |
|
QuickBooks
Payroll
top |
|
|
|
|
For deducting or reimbursing
2004 business mileage on a
personally owned vehicle
2005 business mileage |
| 2004 Mileage- Business rate |
|
.375 cents per mile
(2004)
.405
cents per mile for 2005
|
|
2004 Mileage -Charity rate |
|
.14 cents per mile
(2004)
.15 cents per mile
for 2005 |
| 2004 Milage -Medical and moving
rate |
|
.14 cents per mile (2004)
.14 cents per mile
for 2005 |
|
Payroll tax rules
Part A and
Part B for
employees or owners using a company vehicle |
|
2003
rates and limits - Social Security, Mileage, Pension, 401K, IRA
top |
2004 Maximum contributions and limits to pensions, IRA,
and 401 K
|
|
2004 Maximum employee
401K contribution limit |
2004 $13,000 +$3,000
(over age 50)
2005 $14,000 +$4,000 (over age 50)
2006 $15,000 +$5,000 (over age 50) |
|
2004 Catch up contribution
Limit
(over age 50) |
$ 3,000
(included in above)
|
|
2004
Employer
contribution to 401K is limited
2004 total
additions (employer contribution plus employee contribution)
cannot exceed lesser of :
top |
Up
to 25% of compensation
Under age 50:
$41,000 or 100 % of compensation.
Age 50 +:
$44,000 or 100 % of compensation |
|
2004 Maximum Annual
Compensation limits for determining benefits or contributions
under a qualified plan
(401(a)(17), 404(l), 408(k)(3)(C), &
408(k)(6)(D)
Note: for 2005 definition of a key employee
in a top-heavy plan is
increased from $130,000 to
$135,000
top |
$ 205,000 (2004)
$ 210,000 (2005)
|
|
2004 Maximum Annual Defined Contribution-
Employer Contributions for 2004 to an employee SEP-IRA cannot
exceed
the lesser of the following amounts:
2004 Simplified Employee Pension
Employers contribution for employees is based on the plan
document, which cannot be more restrictive than including all
employees who performed services for the employer in the last 3 of 5
years with earnings greater than:
Employees covered under collective bargaining employees & certain
nonresident aliens may also be exclude.
Special rules apply to the self-employed. See publication 560 (www.irs.gov)
for a worksheet on how to calculate a 2004 SEP contribution for a
self employed Schedule C Filer. For the 2003 worksheet,
click
here.
Learn more- The ABCs of SEP Plans
Checklist- are you in compliance with IRS SEP rules and regs?
Pdf
top |
25% of the employee's W2 compensation (up to $205,000)
or
$ 41,000 (2004)
$
42,000 (2005)
$450 for 2004
$450 for 2005 |
|
2004 Simple
Retirement Account (Simple IRA)
Maximum Pretax Employee contribution
Learn more- The ABCs of Simple Plans
Checklist- are you in compliance with IRS Simple rules and regs?
Pdf |
$ 9,000
+ over age 50 catch up
(2005 $10,000) |
| 2004 Simple Catch up
Deferral (over age 50)
top |
$ 1,500
(2005 $2,000)
(2006 $2,500) |
|
2004 Limit to
Traditional IRA, nondeductible IRA, or Roth IRA.
Who can contribute |
$ 3,000 +
over age 50 catch up
(2005 $4,000) |
|
IRA Catch up Deferral
(over age 50) |
$ 500 |
|
Learn about small business pensions
top |
|
|
2004 Maximum Earnings for Retirees
|
|
2004
Maximum retirement earnings
before
Social Security benefits are reduced
(One dollar in benefits will be withheld for every $2 in earnings
above the limit).
|
over
age 65
2004 under age 65 reduction begins
2005 under age 65 reduction begins
top |
unlimited earnings permitted - no reduction
earnings over $ 11,640 ($970 / mo)
earnings over $12,000 ($1000/ mo) |
|
In the year the individual reaches full
retirement age, earnings months prior to attaining full
retirement age - One dollar in benefits will be withheld for every
$3 in earnings above the limit of $31,080 (2004) |
|
|
Minimum Wage hourly rates
|
|
Link to a chart of all States Minimum Wage rates |
|
Federal
minimum wage
top |
|
|
Individual Rates
download publication 505 for orig
source
-
$4,850 2004 Standard
deduction for Single
-
$4,850 2004 Standard
deduction for Married filing separately
-
$7,150 2004 Standard
deduction for Head of household
-
$9,700 2004 Standard
deduction for Married filing Joint
-
800
2004 Taxpayer claimed as a dependent
Exemption amount $3,100
Deduction for personal exemption phase out begins
Single $142,700-$265,200
Married $214,050-$336,550
HOH $178,350-$300,850
Deduction for itemized deductions phase out
begins when
AGI Threshold
Married, Single, HOH $142,700
Married Filing Separate $71,350 |
|
|
2004 Individual Tax Rates |
10% |
15% |
25% |
28% |
33% |
35% |
|
Single |
7,150
|
next 21,900
to 29,050 |
next
41,300
to 70,350 |
next
76,400
to 146,750 |
next
172,350
to 319,100 |
amounts over
319,100 |
|
Head Of Household |
10,200
|
next 28,700
to 38,900 |
next
61,600
to 100,500 |
next
62,200
to 162,700 |
next
156,400
to 319,100 |
amounts over
319,100 |
|
Married Joint |
14,300
|
next 43,800
to 58,100
|
next
59,150
to 117,250 |
next
61,400
to 178,650 |
next
140,450
to 319,100 |
amounts over
319,100 |
Click here to download IRS Publication 505 containing
these rates
For tax forms and extensions to file individual tax returns click
here
Top |
Click here for:
2004 Corporate Rates
|
|
top |
|
When tax breaks expire |
|
2004 Deduction for
educator expenses- deduction has been extended
for 2004
2005 Child care credit reduce to $700 from $1000
2005 Married couple standard deduction reverts from twice that
of single to 174% of single
2005 10% bracket is reduced
|
| |
|
| |
2004 Gift Tax
| |
2004 Federal gift tax exclusion
2004 Estate Tax Applicable Exclusion Amount
top |
$ 11,000
$1,500,000 |
|
Self Employed Health Insurance Deduction
| |
Deductible Percentage
for
2004 health insurance premiums
100%
(2002=70%
2003=100%)
top |
|
Health Savings Accounts (HSA)
|
|
High Deductible Health Plan and Contribution Limits
| |
Maximum
Annual Deductible |
Annual out-of- pocket does not exceed |
|
2004 Self -only coverage annual deductible |
$1,000-$2,600 |
$5,000 |
|
2004 Family coverage annual deductible |
$2,000-$5,150 |
$10,000 |
|
|
|
Learn more about Health Savings Accounts and administrative
requirements |
|
|
| |
2004
Section 179 depreciation $102,000
see more
The amount of investment qualifying for this
immediate deduction begins to phase out for small businesses with
investment in excess of $410,000
Regs(2003) now permit Section 179 on off-the-shelf
software
Leasehold property placed in service
before 1/1/2006 - 15 year SL
(subsequent owners of the leasehold property required to depreciate
over 39 Years)
Elect to deduct $5000 start-up & $5000
organizational expenses in the year the business begins.
Effective for expenses incurred after 10/22/04. Be sure to read more
on the details of this rule.
Deductions reduced by the amount of which
the cumulative cost of start-up or organizational expenditures
exceed $50,000 respectively
|
2004 Luxury Auto depreciation rules: |
|
|
|
A car is
defined as a four-wheel passenger automobile designed for use
on public roads and is rated at 6,000 pounds or less
unloaded gross vehicle weight |
1st year depreciation limit |
$2,960 including any Sec 179 deduction Plus:
for new vehicles bought in 2004 - additional 50%
1st-year bonus depreciation. The first-year depreciation
amount for passenger automobiles, light trucks, and vans
increases by $7,650.
Total 1st year $10610
|
|
Special use vehicles (over 6000lbs loaded) now
exempt from luxury auto rules and can be deducted under section 179
|
SUVs (over 6000lbs)
Heavy Trucks & Vans
read more |
$25,000 including any sec 179 deduction
$102,000 including any sec 179 deduction |
Publication 946 has a nice table for limits on depreciation of vehicles
placed in service in 2003 and earlier
The 50% and 30% bonus depreciation options expire December 31, 2004.
top |
|
|
|
|
3 years from tax period due
date or 3 years from date original return received whichever is
later
unless the taxpayer fails to include on a return any information
with respect to a
listed transaction
then the statute of limitations will not expire before 1 year after
the Secretary is furnished with the information.
See more Statute of Limitations guidelines |
|
|
2003
rates and limits -
Social Security, Mileage, Pension, 401K, IRA
|
|
