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* ADOPTION TAX CREDIT increases to $10,960.
* ESTATE TAX top rate drops to 46% and the ESTATE TAX
EXEMPTION amount increases to $2 million. The ANNUAL
GIFT TAX EXCLUSION increases to $12,000.
* SECTION 179 maximum deduction increases to $108,000.
Phase-out threshold increases to $430,000.
* 401(k) MAXIMUM salary deferral increases to $15,000
(50 and older catch-up limit increases to $5,000).
* SIMPLE maximum salary deferral remains at $10,000 but
50 and older catch-up increases to $2,500.
* IRA maximum contribution remains at $4,000, but 50
and older catch-up increases to $1,000.
* STANDARD MILEAGE RATE for business driving changes to
44.5¢ a mile. Rate for medical and moving mileage
changes to 18¢ a mile. Rate for charitable driving
stays at 14¢ a mile.
* SOCIAL SECURITY taxable wage limit increases to
$94,200. Retirees under age 65 can earn up to $12,480
without losing benefits.
* HEALTH SAVINGS ACCOUNTS (HSAs) allow under age 65
taxpayers with high-deductible health insurance to
set aside pretax dollars that can be withdrawn tax-free
for medical expenses. For 2005, the individual
set-aside amount increases to $2,700; the family
amount increases to $5,450. Those 55 or older can put
an extra $700 in an HSA.
* KIDDIE TAX threshold increases to $1,700.
* NANNY TAX threshold increases to $1,500.
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