2006 Federal Taxes

Call Us Today
913-856-7596 or
Email Us

2006 Federal Taxes

Minimum standard deduction

This deduction reduces taxable income based on the average of certain medical, interest, charitable, and tax expenses. If the actual expenses are higher than this amount, use Schedule A..

Tax rates

The tax rates for gross income minus the standard deduction and personal exemptions are set out below. Use Form 1040.

Earned income credit

This credit against taxes changes with income and number of children. It can be as high as $4,400.  Use the Earned Income Credit Worksheet in the tax return instructions for further information on this tax credit.

Marriage penalty/bonus

While each case is unique and must be examined on its own merits, it is important to consider whether the divorce should be completed before the end of the calendar year since the taxpayer's filing status is determined on December 31 of the tax year. For more information on the laws involving divorce or separation, you can go to the family law section of my website and if you wish to start the process, you can go to our client information form.

Dependency exemption

This deduction of $3,300 per person reduces taxable income based on the cost of raising children.  If these deductions are transferred to the non-custodial parent, use Form 8332 or attach a copy of the court order giving you the exemption unconditionally.

Child care credit

This credit against taxes is for work related child care expenses.  The credit changes with income and number of children.  Use Form 2441 to figure the amount of the credit.  You will need the information for each child care provider available.

Child tax credit

This credit against taxes is $1,000 per child for up to two children under 17.  Use the Child Tax Credit Worksheet in the tax return instructions.   There is also an Additional Child Tax Credit Worksheet available for those with three or more qualifying children.

IRA and Elective Deferral Contributions

Traditional IRA contribution limit for 2006 is $4,000, and the additional contribution if age 50 or older is $1,000.  The Roth IRA contribution limit for 2006 is $4,000 and the additional contribution limit if age 50 or older is $1,000.  401(k), 403(b), 457 plan and Salary-reduction SEP’s have limitations of $15,000.  SIMPLE plans have limitations of $1,000, with additional contributions if age 50 or older of $2,500, while the other elective deferrals have additional contribution limitations of $5,000.

IRS Mileage Rates

Business rates are 44.5 cents for 2006; charitable volunteer rates are at 14 cents per mile for non-Katrina volunteers and 32 cents for Katrina volunteer activities.  Any medical and moving expenses are 18 cents per mile.

Vega Law Offices, LLC
Gardner, Kansas Family Law Attorney
504 N. Walnut Street
Gardner, Kansas 66030-1824
Phone: 913-856-7596
Fax: 913-440-4676
E-mail Us

Vega Law Offices, LLC of Gardner, Kansas, provides divorce and family law, small business law, tax law, estate planning and traffic violation defense. We represent clients throughout the entire state of Kansas, including Johnson County, Wyandotte County, Miami County, Douglas County and Franklin County, and the communities of Olathe, Paola, Lawrence, Ottawa, Louisburg, Leawood, Edgerton, Fairway, Lenexa, Merriam, Mission, New Century, Overland Park, Roeland Park, Shawnee, Spring Hill, Stanley, Stilwell and Westwood.