[Name]

2005 Year-End Tax Planning: Planning Input

[Date]
You do not need to enter anything into shaded cells.

CONFIDENTIAL

Filing Status and Exemptions

Filing status
If married filing separately, live with spouse at any time during
year?
Taxpayer's age at end of year
Spouse's age at end of year
Taxpayer, spouse, or both blind?
Number of dependents
Number of dependents eligible for child tax credit
Income
Wages, salaries, tips, etc.
Tax-exempt interest
Taxable interest and ordinary dividends
Qualified dividends
Taxable state refunds
Business income (or loss)
Capital gain (or loss)
Other gains (or losses)
Taxable IRA and pension distributions
Rental real estate, royalties, partnerships, S corporations, etc.
Unemployment compensation
Social Security benefits: Total
Social Security benefits: Taxable
Other income
Total income

2004
Married Filing Separately

2005
Married Filing Separately

No

Yes
37
36
No
1
1

38
37
No
1
1

$42,000

$42,000
$0

25

25
$0
0
57,000
(3,000)
0
0
(2,016)
0

57,000
(3,000)

(2,016)
$0
0
$94,009

0
0
$94,009

[Name]
2005 Year-End Tax Planning: Planning Input
[Date]
Adjustments to Income
Taxpayer's traditional IRA contribution
Taxpayer covered by retirement plan?
Spouse's traditional IRA contribution
Spouse covered by retirement plan?
IRA deduction
Tuition and fees paid
Tuition and fees deduction
Health savings account deduction
Moving expenses
One-half of self-employment tax
Self-employed health insurance deduction
Self-employed SEP, SIMPLE, and qualified plans
Other adjustments
Total adjustments
Adjusted gross income
Standard deduction
Itemized Deductions
Medical and dental expenses: Total
Medical and dental expenses: Deductible
Real estate taxes
State and local taxes
Other taxes
Home mortgage interest and points
Investment interest
Gifts to charity
Casualty or theft loss(es)
Miscellaneous deductions not subject to 2% limitation
Miscellaneous deductions subject to 2% limitation: Total
Miscellaneous deductions subject to 2% limitation: Deductible
Total itemized deductions
Allowed itemized deductions
Itemized or standard deduction

$0
No
$0
No

No
No
$0
$4,000

$0
$4,000

0
3,000

0
3,000
0
4,090
0
0
0
7,090
$86,919

4,090

7,090
$86,919
$4,850

$5,000

$5,544

$5,544
0
0
5,000

0
0
5,000
0
6,987
0
0
0
0

6,987

350

350
0
$11,987
11,520
11,520

0
$11,987
11,569
11,569

[Name]
2005 Year-End Tax Planning: Planning Input
[Date]
Exemptions
Taxable income

6,200
$69,199

6,400
$68,950

[Name]
2005 Year-End Tax Planning: Planning Input
[Date]
Tax
Income tax
Self-employment tax
Total tax
Credits
Foreign tax credit
Credit for child and dependent care expenses
Credit for the elderly or the disabled
Education credits
Retirement savings contributions credit
Child tax credit
Other credits
Total credits
Tax after credits
Payments
Withholding
Estimated tax payments
Total payments
Refund (balance due)

14,354
8,180

14,172
8,180
$22,534

$22,352
$0
$0
$0
$0
$0
$0
1,301

$0
1,301
$1,301
$21,233

$1,301
$21,051
0
0

($21,233)

($21,051)

[Name]
2005 Year-End Tax Planning: Planning Summary
[Date]
Gray cells are calculated for you. You do not need to enter anything in them.

Filing Status and Exemptions

Filing status
Number of dependents

CONFIDENTIAL

2,004.00
Married Filing Separately
1.00

2,005.00
Married Filing Separately
1.00

Income
Wages, salaries, tips, etc.
Taxable interest and ordinary dividends
Taxable state refunds
Business income (or loss)
Capital gain (or loss)
Other gains (or losses)
Taxable IRA and pension distributions
Rental real estate, partnerships, S corporations
Unemployment compensation
Social Security benefits: Taxable
Other income
Total income

42,000.00
25.00
0.00
57,000.00
(3,000.00)
0.00
0.00
(2,016.00)
0.00
0.00
0.00
94,009.00

42,000.00
25.00
0.00
57,000.00
(3,000.00)
0.00
0.00
(2,016.00)
0.00
0.00
0.00
94,009.00

Adjustments to Income
IRA deduction
One-half of self-employment tax
Other adjustments
Total adjustments
Adjusted gross income

0.00
4,090.00
3,000.00
7,090.00
86,919.00

0.00
4,090.00
3,000.00
7,090.00
86,919.00

Deductions
Standard deduction
Allowed itemized deductions
Larger of itemized or standard deduction
Exemptions
Taxable Income

4,850.00
11,520.00
11,520.00
6,200.00
69,199.00

5,000.00
11,568.68
11,568.68
6,400.00
68,950.00

Tax

Income tax
Self-employment tax
Total tax
Credits
Tax after credits
Withholding
Estimated tax payments
Refund (balance due)
Effective tax rate
Marginal tax rate
Marginal tax rate: Self-employment income

14,219.00
8,180.00
22,399.00
1,301.00
21,098.00
0.00
0.00
(21,098.00)

14,172.00
8,180.00
22,352.00
0.00
22,352.00
0.00
0.00
(22,352.00)

0.21
0.28
0.43

0.21
0.28
0.43

[Name]
2005 Year-End Tax Planning: Taxable Social Security Income
[Date]
NOTE: If client received social security and made traditional IRA
contributions, see IRS Publication 590.
Gray cells are calculated for you. You do not need to enter anything in them.

CONFIDENTIAL

2004
1
2
3
4
5
6
7

Total Social Security income received

One-half of Social Security income received
Income as prescribed
Tax-exempt interest
Sum of lines 2, 3, and 4 above
Certain adjustments from 1040 (not including IRA)
Provisional income
Enter (a) $32,000 if married filing jointly, or

(b) $0 if married filing separately and lived

with spouse at any time during year, or
(c) $25,000 if all others
Subtract line 8 from line 7
Smaller of line 2, or 50% of line 9

9
10
11

12
13

14
15

Enter the smaller of line 10 or:

(a) $6,000 if married filing jointly, or
(b) $0 if married filing separately and lived
with spouse at any time during year, or
(c) $4,500 if all others
Amount from line 7
Enter (a) $44,000 if married filing jointly, or
(b) $0 if married filing separately and lived
with spouse at any time during year, or
(c) $34,000, all others
Subtract line 13 from line 12
Multiply line 14 by 0.85

2005
$0
0
0
0
0
0
0

$0
0
0
0
0
0
0

0
0
0

0
0
0

0
0

0
0

0
0
0

0
0
0

16
17
18

Add line 11 and line 15

Multiply line 1 by 0.85
Taxable Social Security income

0
0
0

0
0
0

[Name]
2005 Year-End Tax Planning: Adjustments
[Date]
NOTE: If client received Social Security income and made traditional IRA contributions, see IRS Publication 590.
You do not need to enter anything into shaded cells.

CONFIDENTIAL

2004
IRA Deduction
Traditional IRA contributions
Covered by retirement plan?
Skip next five lines?
Amount from Maximum Income table (see below)
Total income (not including Social Security income)
Other adjustments to income
Adjusted income to compare to maximum limits
If adjusted income is less than the maximum income,
difference
Multiply by 30% (.30) (or by 35% (.35) if age 50 or older),
not less than $200
Earned income

Taxpayer IRA

No

Spouse IRA

$0

$0

$0

$0
No

$0

$0

3,000

4,000

$0

$0

94,910
$0

Spouse

$55,000
75,000
160,000

10,000

No

$0
0

94,910

160,000
75,000

$0

Spouse IRA

Yes

$0
0

Taxpayer

Taxpayer IRA

No

Yes

Smallest of contribution, earned income, or maximum

2004 Maximum Income for IRA Deduction

Single or head of household
Qualifying widow(er)
Married filing jointly
If taxpayer covered by retirement plan
If spouse covered by retirement plan
If neither covered by retirement plan
Married filing separately
If lived with spouse during year

2005

75,000

$0

Actual Taxpayer
Amount

Actual
Spouse
Amount

$0
0

$0
0

0
0
0

0
0
0

If did not live with spouse during year

2005 Maximum Income for IRA Deduction

Single or head of household
Qualifying widow(er)
Married filing jointly
If taxpayer covered by retirement plan
If spouse covered by retirement plan
If neither covered by retirement plan
Married filing separately
If lived with spouse during year
If did not live with spouse during year

55,000

Taxpayer

Spouse

$60,000
80,000
160,000
160,000
80,000

80,000

10,000
60,000

IRA Maximum Deduction

Actual Taxpayer
Amount

3000
3500
3000

0
Actual
Spouse
Amount

$0
0

$0
0

0
0
0

0
0
0

0
60,000

0
0

2004
Taxpayer

Under age 50
Age 50 or older
Actual

55,000

2005
Spouse

3000
3500
3000

Taxpayer

4000
4500
4000

Spouse

4000
4500
4000

Tuition and Fees Deduction

Tuition and fees paid

2004
$

Total income
Adjustments other than tuition and fees deduction
Difference
Filing status
Total phaseout amount
Next level of phaseout
Tuition and fees deduction

$
$

94,009
7,090
86,919

Married Filing
Separately
$ 80,000
65,000

2004
Married
Filing Jointly

$ 160,000
130,000

94,009
7,090
86,919

Married Filing
Separately
$ 80,000
65,000
$

Phaseout Amounts for Tuition and Fees Deduction

Total phaseout amount

Next level of phaseout

2005
4,000

4,000

2005
Other

80,000
65,000

Married
Filing Jointly

$ 160,000
130,000

Other

80,000
65,000

[Name]
2005 Year-End Tax Planning: Standard Deduction, Itemized Deductions, and Exemptions
[Date]
You do not need to enter anything into shaded cells.

Allowed Itemized Deductions

Total itemized deductions
Medical, investment interest, and casualty
Difference (if 0, all allowed)
Difference multiplied by 0.80
Adjusted gross income
Threshold for itemized deduction phaseout
Excess (if 0 or less, all allowed)
Multiply excess by 0.03
Smaller of 80% of difference, or 3% of excess
Allowed itemized deductions

CONFIDENTIAL

2004

2005
$11,987
0
$11,987

$9,590
86,919
71,350
$15,569
467

$11,987
0
$11,987
$9,590
86,919
72,975
$13,944
418

467
$11,520

418
$11,569

2004 Standard Deduction

Married filing jointly or qualifying widow(er)

Single
Head of household
Married filing separately

Regular
$9,700
4,850
7,150
4,850

Additional
Additional
Over Age
Regular Deduction Deduction for
65 or Blind Deduction for Age
Blindness
$950
0
0
$0
1,200
0
0
0
1,200
0
0
0
950
4850
0
0

Regular
$10,000
5,000
7,300
5,000

Additional
Additional
Over Age
Regular Deduction Deduction for
65 or Blind Deduction for Age
Blindness
$1,000
0
0
$0
1,250
0
0
0
1,250
0
0
0
1,000
5000
0
0

2005 Standard Deduction

Married filing jointly or qualifying widow(er)

Single
Head of household
Married filing separately

[Name]
2005 Year-End Tax Planning: Standard Deduction, Itemized Deductions, and Exemptions
[Date]
Exemptions
Amount per exemption
Exemption Calculation:
Taxpayer and spouse personal exemption
Dependent exemptions
Total available exemptions
Adjusted gross income
Amount for filing status from table below
Difference
Difference divided
Multiply by 0.02
Multiply line above by total available exemptions
Allowed exemptions
Phaseout Amounts for Exemptions
Married filing jointly or qualifying widow(er)
Single
Head of household
Married filing separately

2004
$3,100

2005
$3,200

3,100
3,100

3,200
3,200
$6,200

$86,919
107,025
$0
0
0.0000

$6,400
$86,919
109,475
$0
0
0.0000

0
$6,200
2004
$ 214,050
142,700
178,350
107,025

0
$6,400
2005
$ 218,950
145,950
182,450
109,475

[Name]
2005 Year-End Tax Planning: Tax Calculations
[Date]
You do not need to enter anything into shaded cells.

CONFIDENTIAL

Self-Employment (SE) Tax

Maximum earnings
Social Security tax rate
Medicare tax rate
Self-employment income
Net earnings from self-employment

Social Security tax

Medicare tax
Total self-employment tax

2004
87,900
12.40%
2.90%
57,000
52,640

6,527
1,653
8,180

2005
90,000
12.40%
2.90%
57,000
52,640
6,527
1,653
8,180

2004 Individual Income Tax

Married filing jointly (MFJ) or qualifying widow(er) (QW) taxable income
$
- -$
14,300
10%
14,301 -58,100
15%
58,101 -117,250
25%
117,251 -178,650
28%
178,651 -319,100
33%
319,101 -
35%
Single taxable income
$

7,151
29,051
100,000
146,751
319,101

-------

7,150
29,050
70,350
146,750
319,100

10%
15%
25%
28%
33%
35%

minus
minus
minus
minus
minus
minus

715.00
6,525.00
10,042.50
18,975.00
25,357.00

minus
minus
minus
minus
minus
minus

357.50
3,262.50
5,373.00
12,710.50
19,092.50

Head of household (HOH) taxable income

$
- -10,201 -38,901 -100,501 -162,701 -319,101 --

10,200
38,900
100,500
162,700
319,100

10%
15%
25%
28%
33%
35%

minus
minus
minus
minus
minus
minus

510.00
4,400.00
7,415.00
15,550.00
21,932.00

7,150
29,050
58,625
89,325
159,550

10%
15%
25%
28%
33%
35%

minus
minus
minus
minus
minus
minus

357.50
3,262.50
5,021.25
9,487.50
12,678.50

2005 Individual Income Tax

Married filing jointly (MFJ) or qualifying widow(er) (QW) taxable income
$
- -$
14,600
10%
14,601 -59,400
15%
59,401 -119,950
25%
119,951 -182,800
28%
182,801 -326,450
33%
326,451 -
35%

minus
minus
minus
minus
minus
minus

730.00
6,670.00
10,268.50
19,408.50
25,937.50

Married filing separately (MFS) taxable income

$
- -$
7,151 -29,051 -58,626 -89,326 -159,551 --

Single taxable income

$

7,301
29,701
71,951
150,151
326,451

-------

Head of household (HOH) taxable income

$
- -10,451 --

7,300
29,700
71,950
150,150
326,450

10%
15%
25%
28%
33%
35%

minus
minus
minus
minus
minus
minus

365.00
3,335.00
5,493.50
13,001.00
19,530.00

10,450
39,800

10%
15%

minus
minus

522.50

39,801
102,801
166,451
326,451

-----

Married filing separately (MFS) taxable income

$
- -$
7,301 -29,701 -59,976 -91,401 -163,226 --

Capital Gains Tax

1. Taxable income
2. Qualified dividends
3. Capital gains
4. Dividends and capital gains
5. Investment interest expense
6. Net dividends and capital gains
7. Taxable income less line 6
8. Enter the smaller of:
The amount on line 1, or
$29,050 if single or MFS,
$58,100 if MFJ or QW,
$38,900 if HOH
9. If line 7 < line 8, amount from line 7
10. Subtract line 9 from line 8
11. Multiply line 10 by 5%
12. If line 6 not equal to line 10,
smaller of line 1 or line 6
13. Amount on line 10
14. Subtract line 13 from line 12
15. Multiply line 14 by 15%
16. Tax on amount on line 7

102,800
166,450
326,450

25%
28%
33%
35%

minus
minus
minus
minus

7,300
29,700
59,975
91,400
163,225

10%
15%
25%
28%
33%
35%

minus
minus
minus
minus
minus
minus

4,502.50
7,586.50
15,909.00
22,438.00

365.00
3,335.00
5,134.25
9,704.25
12,968.75

2004
$
69,199
$
$

(3,000)
(3,000)
-

$
$

69,199

2005
68,950

68,950

(3,000)
(3,000)
-

29,050

29,050

14,354

14,172

17. Add lines 11, 15, and 16

18. Tax on amount on line 1
19. Tax on all taxable income
Effective and Marginal Tax Rates
Effective tax rate
Marginal tax rate
Marginal tax rate: Self-employment income

$ 14,354
14,219
14,219
2004
20.55%
28.00%
43.30%

2005
20.55%
28.00%
43.30%

14,172
14,172
14,172

[Name]
2005 Year-End Tax Planning: Credits
[Date]
Gray cells are calculated for you. You do not need to enter anything in them.

Child Tax Credit

Maximum credit per child
Number of qualifying children
maximum amount
Phaseout
Maximum credit available
Tax
Certain other credits
If tax does not equal credits, difference
Smaller of tax or maximum credit

Child Tax Credit AGI Phaseout

Adjusted gross income
Filing status
Number of children eligible
Beginning phaseout
Ending phaseout
Actual phaseout

Filing Status
Married filing jointly
Single, head of household, qualified
widow(er)
Married filing separately

CONFIDENTIAL

2004
$1,000

2005
$1,000

$1,000
1,000

$1,000
$1,000
$0

$14,354
0
$14,354
$0

2004
$86,919

2005
$86,919

Married Filing
Separately

Married Filing
Separately

1
$55,000
64,001
1,000

1
$55,000
64,001
1,000

2004 Beginning 2005 Beginning

AGI Phaseout

$0
$14,172
0

AGI Phaseout

$110,000

$110,000

75,000
55,000

75,000
55,000

$14,172
$0