However, this contribution was limited and eventually phased out for single taxpayers
whose modified Adjusted Gross Income (AGI) ranged between $95,000 and $110,000, and married joint filers with combined income between $150,000 and $160,000.
In 2002 and 2003, single taxpayers
with adjusted gross income up to $65,000 ($130,000 on joint returns) would receive a maximum deduction of $3,000 per year.
While this has no effect on the single taxpayer
, a married couple may easily be underwithheld if their combined income is more than $250,000 but neither makes more than $200,000 individually.
The new law increases the phaseout range for married taxpayers filing a joint return so that it is twice the range for single taxpayers
Thus, married filing jointly taxpayers lose a portion of the combined basic standard deduction if they had filed as single taxpayers
In 2000, single taxpayers
with up to $26,250 in taxable income were in the 15% bracket, which jumps to $43,850 for joint filers.
Those eligible to contribute the full $2,000 a year are single taxpayers
with annual modified adjusted gross income (AGI) up to $95,000 and couples falling jointly with up to $150,000 of modified AGI.
can take a $60 credit if they have adjusted gross incomes of $25,000 or less.
For those with higher incomes than these thresholds, the tax credit is reduced and is phased out completely for single taxpayers
with a MAGI of $95,000 or more, and for married taxpayers with a MAGI of $170,000 or higher.
Therefore, the filing threshold in 2014, for taxpayers under 65 and not blind, is $10,150 for single taxpayers
and $20,300 for married couples filing jointly
TIPRA Section 301 includes some relief from the AMT for 2006, via a temporary increase in the AMT exemptions, which will be $62,550 for those married filing jointly and $42,500 for single taxpayers
(compared to $58,000 and $40,250, respectively, as provided in the Working Families Tax Relief Act of 2004).
Married taxpayers with less than $44,000 in income or single taxpayers
with less than $22,000 would pay no tax on Social Security benefits, indexed for inflation.