It would increase the standard deduction for all couples by an additional $500 in 2005, and by $250 for single filers.

For single filers, the dividing line is $3,750.

The limit for single filers is $100.

In 2005, that zone included married couples with annual incomes of $150,000 to $382,000, and single filers making $112,500 to $273,000.

Exemption of $3,000 for single filers and $4,000 for married couples.

Individuals could contribute up to $2,500 a year, subject to certain income limits from $60,000 for single filers to $120,000 for joint returns.

But full credits are available only to single filers with modified adjusted gross income below $41,000 and to couples with less than $82,000.

For a single filer earning $50,000, the new reduction would translate into a saving of $208.

And, since they would also be filing their taxes as single filers, their overall tax liabilities might be higher.

But they begin to phase out for couples with adjusted gross income of $80,000 or for single filers at $40,000.