Of course, the most common changes for any tax year are items which are indexed for inflation. For 2006, this includes:
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Personal exemptions are increased to $3,300.
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Standard deductions are increased to $10,300 for married couples filing a joint return and qualifying widow(er)s; $5,150 for singles and married individuals filing separate returns; and $7,550 for heads of household. There’s more about filing status here.
- Standard deductions have also been increased for seniors and the blind.
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The maximum earned income tax credit (EITC) is $4,536 for taxpayers with two or more qualifying children, $2,747 for those with one child and $412 for people with no children.
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The maximum Hope credit rises to $1,650 (100% of the first $1,100 of eligible expenses and 50% of the next $1,100 of expenses). These dollar amounts are doubled for students attending an eligible educational institution in the Gulf Opportunity Zone. Phaseouts apply.
