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New in the 2009 Tax Code
This page summarizes important changes that could affect your
IRS tax payments for 2009
The Income Tax Brackets Have Changed.
Singles:
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10% Tax Bracket – $0-$8,350
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15% Tax Bracket – $8,350-$33,950
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25% Tax Bracket – $33,950-$82,250
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28% Tax Bracket – $82,250-$171,550
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33% Tax Bracket – $171,550-$372,950
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35% Tax Bracket – $372,950+
Married Filing Jointly:
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10% Tax Bracket – $0-$16,700
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15% Tax Bracket – $16,700-$67,900
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25% Tax Bracket – $67,900-$137,050
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28% Tax Bracket – $137,050-$208,850
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33% Tax Bracket – $208,850-$372,950
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35% Tax Bracket – $372,950+
Married Filing Separately:
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10% Tax Bracket – $0-$8,350
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15% Tax Bracket – $8,350-$33,950
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25% Tax Bracket – $33,950-$68,525
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28% Tax Bracket – $68,525-$104,425
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33% Tax Bracket – $104,425-$186,475
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35% Tax Bracket – $186,475+
Head Of Household:
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10% Tax Bracket – $0-$11,950
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15% Tax Bracket – $11,950-$45,500
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25% Tax Bracket – $45,500-$117,450
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28% Tax Bracket – $117,450-$190,200
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33% Tax Bracket – $190,200-$372,950
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35% Tax Bracket – $372,950+
The Standard Deduction Went Up.
The standard deduction for single filers goes up to $5,700 from $5,450 last year.
For joint filers the deduction will be $11,400, which is up from $10,900.
The Amount You Can Save In Your 401K Retirement Account Went Up.
Under 50? You can now contribute $16,500 each year.
Over 50? You can now contribute $22,000 each year.
The Amount You Can Save In Your Traditional Or Roth IRA Account.
Under 50? You can now contribute $5,000 each year.
Over 50? You can now contribute $6,000 each year.
The Mileage Deduction Has Decreased.
In 2008 you were able to deduct $.585 per mile for business travel, but in 2009 that deduction has dropped to $.55 per mile. Just be sure you are actually traveling for business if you take this deduction!
The Gift Tax Exclusion Went Up.
The gift tax exclusion is now $13,000, up $1,000 from 2008. This means you can give up to $13,000 tax free to anyone else, up to a maximum of $1 million in your life.
The Earned Income Tax Credit Has Gone Up.
The maximum tax credit for low and moderate income workers and families with two or more children is now $5,028, up from $4,824 in 2008. Income limit on this credit is now $43,415 for 2009, up from $41,646 last year.
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