The IRS has issued the official 2006 figures for the many inflation adjustments required by the tax law. Rev. Proc. 2005-70 contains inflation adjustments under 37 tax law provisions, including the new gift tax annual exemption for 2006 ($12,000), the new income tax rate tables, and standard deductions and personal exemptions.
The revenue procedure also lists the maximum contribution levels for health savings accounts for 2006. For taxpayers with self-only coverage, the maximum 2006 contribution is $2,700; for family coverage, the maximum is $5,450. A Treasury press release and the BenefitsBlog have more details.
The items included in the Tax Update Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation.
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