|
Here are some tax changes for 2009. Deductions and Exemptions | Standard Deduction1 | Deduction | | Single | $ 5,700 | | Married filing jointly | $11,400 | | Married filing separately | $ 5,700 | | Head of household | $ 8,350 | | Personal Exemption2 | $ 3,650 |
1For a married taxpayer
aged 65 or older or blind the deduction is increased by $1,100 ($2,200 if both 65 and blind ). For a single taxpayer
aged 65 or older or blind the deduction is increased by $1,400 ($2,800 if both 65 and blind). To
itemize, you must have deductions that are equal to or above the standard deduction levels.
NOTE: In 2009 you
can add property taxes and sales tax paid on purchase of a new automobile to your standard deduction without itemizing. 2No personal exemption is allowed to an individual who is eligible to be claimed as a dependent
on another taxpayer’s return. Also, the tax benefit of the personal exemption is phased out for higher income taxpayers. Back to top
Standard Mileage Rate For Business | 55 cents | For Medical | 24 cents | | For Charity
| 14 cents | For
Moving | 24 cents |
Back to top
Maximum Retirement Contributions
| Individual Retirement
Arrangements (IRA) | under age 50 | $
5,000 | | | age 50 and
over | $ 6,000 | | SIMPLE IRA | under age 50 | $11,500 | | | age 50 and over | $14,000 | | 401(k) Plan | under
age 50 | $16,500 | | | age 50 and over | $22,000 |
Back to top
Adjusted Gross Income Phaseout Levels
IRA Deduction Roth IRA Eligibility Itemized Deductions Personal Exemption Child Tax Credit Hope/Lifetime Credit | IRA Deduction (with Co. Pension) | Phaseout Level | | Single / Head of household | $55,000 - 85,000 | | Married filing jointly | $89,000 - 109,000 | | Married filing separately | $0 - 10,000 | | When spouse has company pension | $166,000 - 176,000 |
| Roth IRA Eligibility | Phaseout Level | | Single / Head of household | $105,000 - 120,000 | | Married filing jointly | $166,000 - 176,000 | | Married filing separately | $0 - 10,000 | | Rollover of Regular IRA to Roth IRA | 100,000 (no limit
in 2010) |
| Itemized Deductions | Phaseout Level | Single / Head of household/
Married filing jointly | $166,800 | | Married filing separately | $83,400 |
| Personal Exemption | Phaseout Level | | Single | $166,800 - 289,300 | | Head of household | $208,500 - 331,000 | | Married joint & Surviving spouses | $250,200 - 372,700 | | Married filing separately | $125,100 - 186,350 |
| Child tax credit ($1,000 per child) | Phaseout Level | | Single / Head of household | Starts at $75,000 | | Married filing jointly | Starts at $110,00 | | Married filing separately | Starts at $55,000 |
Back to top
|