Rebel Smith Quillin, CPA

ADJUSTED GROSS INCOME PHASEOUT RANGES

Description IRC
Sec(s).		 Notes Joint Return Single/Head of
Household
(HOH)		 Married Filing Separately
Adoption credit/exclusion
2004
2005		 23 and 137 1
$155,860-$195,860
$159,450-$199,450
$155,860-$195,860
$159,450-$199,450
No credit
No credit
AMT exemption 55(d) 3 $150,000-$382,000 $112,500-$273,500 $75,000-$191,000
Child Credit 24 1,5 $110,000-? $75,000-? $55,000-?
Coverdell Education Savings 530 1
$190,000-$220,000
$95,000-$110,000
$95,000-$110,000
Dependent care credit (35% credit reduced by 1% by each $2,000 or portion thereof AGI over amount shown; minimum credit is 20%) 21   $15,000-$43,000 $15,000-$43,000 No credit
Education loan interest exp.
2004
2005		 221(b)(2) 1
$100,000-$130,000
$105,000-$135,000
$50,000-$65,000
$50,000-$65,000
no deduction
no deduction
Elderly/disabled Credit 22 4,6 $10,000-$25,000 $7,500-$17,500 $5,000-$12,500
Hope Scholarship Credit
2004
2005		 25A 1
$85,000-$105,000
$87,000-$107,000
$42,000-$52,000
$43,000-$53,000
no credit
no credit
IRA ded. w/pension coverage
2004
2005		 219(g) 1,2
$65,000-$75,000
$70,000-$80,000
$45,000-$55,000
$50,000-$60,000
$0-$10,000
$0-$10,000
IRA deduction with spouse having pension coverage 219(g)(7) 1 $150,000-$160,000 not applicable not applicable
Itemized deduction reduction
2004
2005		 68 1 $142,700-?
$145,950-?		 $142,700-?
$145,950-?		 $71,350-?
$72,975-?
Lifetime Learning Credit
2004
2005		 25A 1
$85,000-$105,000
$87,000-$107,000
$42,000-$52,000
$43,000-$53,000
no credit
no credit
Passive activity rehabilitation
credit exception		 469(i) 1 $200,000-$250,000 $200,000-$250,000 $100,000-$125,000
Passive rental losss ($25,000) exception 469(i) 1 $100,000-$150,000 $100,000-$150,000 $50,000-$75,000
Personal Exemptions
2004

2005		 151  
$214,050-$336,550

$218,950-$341,450
$142,700-$265,00 single
$178,350-$300,850 (HOH)
$145,950-$268,450 single
$182,450-$304,950 (HOH)
$107,025-$168,275

$109,475-$170,725

Retirement contribution credit
50% credit

20% credit

10% credit		 25B 1
up to $30,000

$30,001-$32,500

$32,501-$50,000
up to $15,000 (s)
up to $22,500 (h)
$15,001-$16,250(s)
$22,501-$24,375(h)
$16,241-$25,000(s)
$24,376-$37,500(h)
up to $15,000

$15,001-$16,250

$16,251-$25,000

Rollover to Roth IRA 408A 1 $100,000 $100,000 not allowed
Roth IRA 408A 1 $150,000-$160,000 $95,000-$110,000 $0-$10,000
Savings bond interest exclusion
2004
2005		 135 1
$89,750-$119,750
$91,850-$121,850
$59,850-$74,850
$61,200-$76,200
no exclusion
no exclusion
Tuition deduction
$4,000 deduction
$2,000 deduction		 222 1 $130,000
$160,000		 $65,000
$80,000		 no deduction
no deduction

Notes:

  1. Modifications to adjusted gross income apply. The modifications vary depending on the relevant Code section.
  2. Increases for future years are specifically provided in the statute.
  3. Phaseout applies to alternative minimum taxable income rather than AGI.
  4. Married individuals filing separately can claim the credit only if they lived apart during the entire year.
  5. Size of the phaseout range depends on the number of qualifying children in the family.
  6. Married individuals normally must file a joint return to take the credit even though a married filing separately phase out range is shown.

Rebel Smith Quillin
Phone: (512) 266-3358
Fax: (512) 266-3359