 |
McCusker
& Associates - December 2009 Tax Update
 Happy
Holidays!
If
you haven’t had time to work on your holiday gift list
just yet, you can look to Congress for inspiration. They’ve
been busy as elves on Christmas Eve, compiling a gift list
that they hope will surely brighten up your holiday season.
Healthcare reform, financial bailouts, cash for clunkers,
home buyers’ credits -- these are but a few of the goodies
they have in store for you.
But,
I’m just not sure they have this gift thing quite figured
out. You see, I think their plan is that you will
have to pay for these gifts. I’m sure their failure
to enunciate this point is just an oversight by our well intentioned
friends down in Washington. Fortunately we won’t have
to pay just yet, as there’s been little in the way of
tax changes this year. So while we wait for the soon-to-arrive
bill, here are some tax facts for years 2009 and 2010. Enjoy
the reprieve.
| Tax
Facts |
| Standard Deductions: |
2009 |
2010 |
Married
Joint |
$11,400 |
$11,400 |
Married Separate |
5,700 |
5,700 |
Single |
5,700 |
5,700 |
Head of Household |
8,350 |
8,400 |
| |
|
|
| Personal Exemption Amounts: |
$3,650 |
$3,650 |
| |
|
|
| 2009 Tax Brackets: |
|
|
Married Joint |
Taxable Income |
Rate |
| |
$0 - $16,750 |
10% |
| |
16,751 – 68,000 |
15% |
| |
68,001 – 137,300 |
25% |
| |
137,301 – 209,250 |
28% |
| |
209,251 – 373,650 |
33% |
| |
over $373,650 |
35% |
Single |
Taxable Income |
Rate |
| |
$0 - $ 8,375 |
10% |
| |
8,376– 34,000 |
15% |
| |
34,001– 82,400 |
25% |
| |
82,401– 171,850 |
28% |
| |
171,851 – 373,650 |
33% |
| |
over $372,650 |
35% |
Head of Household |
Taxable Income |
Rate |
| |
$0 - $11,950 |
10% |
| |
11,951 – 45,550 |
15% |
| |
45,551 – 117,650 |
25% |
| |
117,651 – 190,550 |
28% |
| |
190,551– 373,650 |
33% |
| |
over $373,650 |
35% |
| |
|
|
| 2009/2010 Capital Gains Tax Rate:
Federal 15%, Mass 5.3% (In 2009 taxpayers with a marginal
tax bracket of 15% or below will pay 0% federal capital
gains tax) |
| |
|
|
| Traditional & Roth IRA Contribution Limit |
2009 |
2010 |
| |
$5,000 |
$5,000 |
| Additional Allowable Contribution if > 50 yrs old |
1,000 |
1,000 |
| |
|
|
| 401(k) and 403(b) Employee Contribution Limits
|
16,500 |
16,500 |
| Additional Allowable Contribution if > 50 yrs old
|
5,500 |
5,500 |
| |
|
|
| SEP/IRA Contribution Limits (Self-Employed) |
49,000 |
49,000 |
| |
|
|
| SIMPLE IRA Employee Contribution Limits |
11,500 |
11,500 |
| Additional Allowable Contribution if > 50 yrs old |
2,500 |
2,500 |
| |
|
|
| Standard Mileage Rates for Auto Use: |
2009 |
|
Business |
55.0 cents/mi |
|
Charitable |
14.0 |
|
Medical |
24.0 |
|
Moving |
24.0 |
|
| |
|
|
2009 Child Tax Credit (for children
under 17 at Dec 31): $1,000
2009 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 |
2009 |
2010 |
| |
$13,000 |
$13,000 |
I
hope this was of value. As always I welcome your questions
and feedback.
Jim
|
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