Each city has one or more "wealth zones" -- ZIP codes with high
adjusted gross incomes. We include the ratio of wealthy people to advisors in each city's wealth zones, along with AGI and number of households in those zones and a cool fact about each city.
Also, the maximum yearly contribution is subject to a pro rata phase-out for taxpayers filing jointly with modified
adjusted gross incomes between $167,000 and $177,000 (for single taxpayers with modified
adjusted gross incomes between $105,000 and $120,000).
The credit will phase out for individuals with modified
adjusted gross incomes between $125,000 and $145,000; and for those filing jointly with modified
adjusted gross incomes between $225,000 and $245,000.
You qualify for this level with
adjusted gross incomes of $60,041, according to IRS figures.
Elimination of income limits on Roth IRA conversions: For tax years beginning after 2009, taxpayers may make conversions of traditional IRAs to Roth IRAs without regard to their
adjusted gross incomes. For conversions occurring in 2010 (unless the taxpayer elects otherwise), the amount includible in gross income as a result of the conversion is included ratably in 2011 and 2012; income inclusion is accelerated if converted amounts are distributed before 2012.
Temporary Suspension of Charitable Contribution Limits A provision in the Katrina Emergency Tax Relief Act of 2005 allows donors to make cash gifts to charities by the end of this year to deduct an amount equal to virtually 100 percent of their
adjusted gross incomes. Caution: As of Nov.
Noting that many taxpayers with
adjusted gross incomes in the $60,000 to $70,000 range might be subject to the AMT in the future as a result of new credits allowed under the Taxpayer Relief Act of 1997, Mares offered these suggestions:
One CBO revenue-raising option would be to eliminate the income tax thresholds on these benefits entirely and require all beneficiaries to include 85% of their benefits in their
adjusted gross incomes. The report says that many more, but not all, Social Security recipients would be required to pay income tax on their benefits but that the policy option would raise $116 billion by 2002.
The credit will be phased out for taxpayers with
adjusted gross incomes between $60,000 and $75,000.
In addition, the credit is phased out for taxpayers with modified
adjusted gross incomes above $75,000, with full phase-out at $115,000.