1995 Tax Facts
Provided by Freal and Saulness, CPAs, Woodinville
Standard mileage rate for 1995 is 30 cents per mile. Charity mileage remains the same at 12 cents per mile and medical and moving mileage remains the same at 9 cents per mile.
Mortgage interest or equity loan interest is still deductible if indebtedness is secured by qualified residence (principal or second home).
Self-employment tax is 15.3% for 1995 on the first $61,200 and 2.9% on the excess over $61,200.
Personal exemption is not allowed to an individual who is eligible to be carried on another taxpayer's return. The personal exemption for 1995 is $2,500. Exemption phases out at $114,700 for single and $172,050 for 1995 married couples.
The standard deduction for married couples if $6,550. The standard deduction for single persons is $3,900. An additional $750 is allowed for elderly married and $950 for elderly single. Dependents standard deduction is the greater of $650 or the earned income. The itemized deduction phaseout begins at $114,700.
Kiddie tax on unearned income (interest, dividends, etc.) for a child under 14 is expensive and complicated. Dependent children must file a return if this type of unearned income is over $650 and if it exceeds $1,300, then it is taxable at the parent's rate.
Dependent care providers must furnish name, address, and Social Security number to a taxpayer in order for the taxpayer to claim the child care exemption in 1995 for children under age 13. A Form W-10 completed by the provider is the proper medium, but a copy of the provider's Social Security card or driver's license (if it shows the security number) will suffice.
The maximum EIC for no children is $314. Maximum income is $9,230. The maximum for one child is $2,094 and for two children is $3,110. Maximum income is $24,396 for one child and $26,673 for two children.
The maximum amount that you can earn and still draw Social Security without a penalty is $8,160 for ages 62-64 and $11,280 for ages 65-69; and, of course, there is no limit after age 70.