 |
McCusker
& Associates - December 2008 Tax Update
 Happy
Holidays! “Change has come to America.” Yes, change
has certainly been the theme so far in 2008 – some of
it good and some of it bad.
The
ever changing financial landscape (bad) has left us all hoping
to put this year in our collective rear view mirrors. On the
political front (good), the change is perhaps more uplifting.
Regardless
of your political persuasion, I think we can all agree that
the election of our first African-American President was an
awe inspiring testament to the strength of our political framework.
And a hope that better times are in the offing. I wish President
Obama well with the many changes that lie ahead.
Unfortunately,
the one thing that hasn’t changed this year is the requirement
that we file our taxes. So to help you out while we wait and
pray for the markets to recover, here are some tax facts for
years 2008 and 2009.
| Tax
Facts |
| Standard Deductions: |
2008 |
2009 |
Married
Joint |
$10,900 |
$11,400 |
Married Separate |
5,450 |
5,700 |
Single |
5,450 |
5,700 |
Head of Household |
8,000 |
8,350 |
| |
|
|
| Personal Exemption Amounts: |
$3,500 |
$3,650 |
| |
|
|
| 2009 Tax Brackets: |
|
|
Married Joint |
Taxable Income |
Rate |
| |
$0 - $16,700 |
10% |
| |
16,701 – 67,900 |
15% |
| |
67,901 – 137,050 |
25% |
| |
137,051 – 208,850 |
28% |
| |
208,851 – 372,950 |
33% |
| |
over $372,950 |
35% |
Single |
Taxable Income |
Rate |
| |
$0 - $ 8,350 |
10% |
| |
8,351 – 33,950 |
15% |
| |
33,951 – 82,250 |
25% |
| |
82,251 – 171,550 |
28% |
| |
171,551 – 372,950 |
33% |
| |
over $372,950 |
35% |
Head of Household |
Taxable Income |
Rate |
| |
$0 - $11,950 |
10% |
| |
11,951 – 45,500 |
15% |
| |
45,501 – 117,450 |
25% |
| |
117,451 – 190,200 |
28% |
| |
190,201 – 372,950 |
33% |
| |
over $372,950 |
35% |
| |
|
|
| 2008/2009 Capital Gains Tax Rate:
Federal 15%, Mass 5.3% (In 2008 taxpayers with a marginal
tax bracket of 15% or below will pay 0% federal capital
gains tax) |
| |
|
|
| Traditional & Roth IRA Contribution Limit |
2008 |
2009 |
| |
$5,000 |
$5,000 |
| Additional Allowable Contribution if > 50 yrs old |
1,000 |
1,000 |
| |
|
|
| 401(k) and 403(b) Employee Contribution Limits
|
15,500 |
16,500 |
| Additional Allowable Contribution if > 50 yrs old
|
5,000 |
5,500 |
| |
|
|
| SEP/IRA Contribution Limits (Self-Employed) |
46,000 |
49,000 |
| Additional Allowable Contribution if > 50 yrs old
|
2,500 |
2,500 |
| |
|
|
| SIMPLE IRA Employee Contribution Limits |
10,500 |
11,500 |
| Additional Allowable Contribution if > 50 yrs old |
2,500 |
2,500 |
| |
|
|
| Standard Mileage Rates for Auto Use: |
2008 |
2009 |
Business |
50.5 cents/mi |
55.0 cents/mi |
Charitable |
14.0 |
14.0 |
Medical |
19.0 |
24.0 |
Moving |
19.0 |
24.0 |
| |
|
|
2008 Child Tax Credit (for children
under 17 at Dec 31): $1,000
2008 Charitable contributions –
cash contributions of any amount need to be evidenced
by proof of payment, either a cancelled check or receipt.
Contributions over $250 need a written acknowledgement
from the charity indicating date and amount. |
| |
|
|
| Annual Gift Tax Exclusion |
2008 |
2009 |
| |
$12,000 |
$13,000 |
I
hope this was of value. As always I welcome your questions
and feedback.
Jim
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