·         For 2005, the standard deduction for a single individual is $5,000 and for a married couple is $10,000. A person will benefit by itemizing once allowable deductions exceed the applicable standard deduction. Itemized deductions include state and local income taxes, real estate taxes, mortgage interest, charitable contributions, and non-reimbursed employee business expenses. 

• For 2005, the personal exemption is $3,200. Individuals will claim a personal deduction for themselves, their spouse, and their dependents.  

• The maximum earnings subject to social security taxes has been increased to $90,000 in 2005.

• The standard mileage rate has been increased to $.405 per mile in 2005 from $.375 per mile during 2004.

• The maximum annual contribution to a 401(k) plan or a 403(b) plan has been increased to $14,000 for 2005 from $13,000 in 2004.  And if you'll be 50 or older by December 31, 2005, you can contribute an extra $4,000 into your 401(k) or 403(b) account this year.