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The following table provides some important tax information for 2009, compared with 2008. Save it as a handy planning reference.
| Social Security / Medicare |
2009 |
2008 |
| Social Security Taxable Wage Base |
$106,800 |
$102,000 |
| Medicare Taxable Wage Base |
No limit |
No limit |
| Individual Retirement Accounts |
2009 |
2008 |
| Roth IRA Individual, up to 100% of earned income |
$ 5,000 |
$ 5,000 |
Traditional IRA Individual,
up to 100% of earned Income |
$ 5,000 |
$ 5,000 |
|
Roth and traditional IRA additional annual "catch-up" contributions for account owners age 50 and older |
$ 1,000 |
$ 1,000 |
| Annual Qualified Plan Limits |
2009 |
2008 |
|
Defined Contribution Plan Dollar limit on additions on Sections 415(c)(1)(A) |
$ 49,000 |
$ 46,000 |
|
Defined Benefit Plan limit on benefits
(Section 415(b)(1)(A)) |
$195,000 |
$185,000 |
|
Maximum compensation used to determine contributions |
$245,000 |
$230,000 |
|
401(k), SARSEP, 403(b) Plan Deferrals (Section 402(g)), & 457 Plan deferrals (Section 457(b)(2)) |
$ 16,500 |
$ 15,500 |
|
401(k), 403(b), 457 & SARSEP additional "catch-up" contributions for employees age 50 and older |
$ 5,500 |
$ 5,000 |
|
SIMPLE deferrals (Section 408(p)(2)(A)) |
$ 11,500 |
$ 10,500 |
SIMPLE additional "catch-up" contributions
for employees age 50 and older |
$ 2,500 |
$ 2,500 |
|
Compensation defining highly compensated employee (Section 414(q)(1)(B)) |
$110,000 |
$105,000 |
| Compensation defining key employee (officer) |
$160,000 |
$150,000 |
|
Compensation triggering Simplified Employee Pension (SEP) contribution requirement
(Section 408(k)(2)(c)) |
$ 550 |
$ 500 |
| Driving Deductions |
2009 |
2008 |
Business mileage,
per mile |
55 cents |
58.5 cents
(7/1/08 to 12/31/08)
50.5 cents
(1/1/08 to 6/30/08) |
| Charitable mileage, per mile |
14 cents |
14 cents |
Medical and moving mileage,
per mile |
24 cents |
27 cents
(7/1/08 to 12/31/08)
19 cents
(1/1/08 to 6/30/08) |
| Business Equipment |
2009 |
2008 |
| Maximum Section 179 expense deduction |
$133,000* |
$250,000 |
| Phaseout for Section 179 |
$ 530,000 |
$800,000 |
| Transportation Fringe Benefit Exclusion |
2009 |
2008 |
| Monthly commuter highway vehicle and transit pass |
$ 120 |
$ 115 |
| Monthly qualified parking |
$ 230 |
$ 220 |
| Domestic Employees |
2009 |
2008 |
| Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc. |
$ 1,700 |
$ 1,600 |
| Standard Deduction |
2009 |
2008 |
|
Married filing jointly |
$ 11,400 |
$ 10,900 |
|
Single (and married filing separately) |
$ 5,700 |
$ 5,450 |
|
Heads of Household
| $ 8,350 |
$ 8,000 |
| Itemized Deduction Phase-Out |
2009 |
2008 |
Amount for all filing status categories
except married filing separately |
$166,800 |
$159,950 |
| Married filing separately |
$ 83,400 |
$ 79,975 |
|
Personal Exemption |
2009 |
2008 |
|
Amount |
$ 3,650 |
$ 3,500 |
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Kiddie Tax |
2009 |
2008 |
|
Net unearned income for a child that is not subject to the "Kiddie Tax" |
$ 1,900 |
$ 1,800 |
| Estate Tax |
2009 |
2008 |
| Federal Estate Tax Exemption |
$3.5 million |
$2 million |
| Annual Exclusion for Gifts |
2009 |
2008 |
| Amount you can give to each recipient |
$ 13,000 |
$ 12,000 |
| IRS Interest Rates |
2009
(1st quarter) |
2008
(4th quarter) |
| Tax overpayments |
5 percent
(4 percent for corporations;
2.5 percent for the
portion of corporate
overpayments
exceeding $10,000) |
6 percent
(5 percent for corporations;
3.5 percent for the portion of corporate
overpayments
exceeding $10,000) |
| Tax underpayments |
5 percent
(7 percent for
large corporate
underpayments) |
6 percent
(8 percent for
large corporate
underpayments) |
* The Economic Stimulus Act of 2008 raised the Section 179 amount for only one year for most assets. Given the state of the economy, it is expected that another economic stimulus law will pass soon and boost the 2009 amount above $133,000.
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