| Home Page/ Site Map | |
|---|
I.R.S. 2009 Tax deductions page 1 |
tax saving strategies, tax saving tips |
|---|
Oct. 16, 2008 For 2009, personal exemptions and standard deductions will rise and tax brackets will widen because of inflation adjustments.. By law, the dollar amounts for a variety of tax provisions must be revised each year to keep pace with inflation. As a result, more than three dozen tax benefits, affecting virtually every taxpayer, are being adjusted for 2009. Key changes affecting 2009 returns, filed by most taxpayers in early 2010, include the following: The value of each personal and dependency exemption, available to most taxpayers, is $3,650, up $150 from 2008.
The new standard deduction is $11,400 for married couples filing a joint return (up $500), $5,700 for singles and married individuals filing separately (up $250) and $8,350 for heads of household (up $350). Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes. Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $67,900, up from $65,100 in 2008. The maximum earned income tax credit for low and moderate income workers and working families with two or more children is $5,028, up from $4,824. The income limit for the credit for joint return filers with two or more children is $43,415, up from $41,646. The annual gift exclusion rises to $13,000, up from $12,000 in 2008. It's somewhat helpful considering the tough times we are experiencing in the nation. We will see what changes the new administration will add to this. |
|