The following is an excerpt from the Internal
Revenue Service itemizing various deductions,
exemptions, and tax changes. These will apply for the
preparation of 2009 personal income tax
returns.
The IRS updates several tax-related amounts each
year to take into account the cost of living adjustments
due to inflation. Here's a quick summary of all the
essential tax figures for the year 2009.
Standard Deductions
Single: $5,700 Head of Household: $8,350 Married Filing
Joint: $11,400 Married Filing Separately:
$5,700 Qualifying Widow/Widower:
$11,400 Dependent: $950-$5,700*
Additional Amount if Blind: $1,100 (for
married filing joint, married filing separately, or
qualifying widow); $1,400 (for single and head of
household) Additional Amount if age 65 or older:
$1,100 (for married filing joint, married filing
separately, or qualifying widow); $1,400 (for
single and head of household). More information
about the standard
deduction. * Dependents must
calculate their standard deduction using an IRS
Worksheet.
Personal Exemptions
Per taxpayer and dependent:
$3,650 More information about personal exemptions.
Phaseout of Personal Exemptions
The amount you
can claim for personal exemptions starts to be reduced
(or "phased out") once you reach certain income
thresholds. If your income is within these ranges, your
personal exemptions will be reduced. If your income
exceeds the amounts listed below, your personal
exemption is $2,433. Single: $166,800 -
$289,300 Head of Household: $208,500 -
$331,000 Married Filing Joint: $250,200 -
$372,700 Married Filing Separately: $125,100
- $186,350 Qualifying Widow/Widower: $250,200
- $372,700 More information about the personal exemptions.
Filing Requirement Thresholds
You are required
to file a tax return if your income exceeds the combined
total of your standard deduction and personal exemption.
Here's the 2009 filing requirement thresholds:
Single: $9,350 ($10,750 if age 65 and over)
Head of Household: $12,000 ($13,400 if age 65
and over) Married Filing Joint: $18,700
($19,800 if one spouse age 65 and over; $20,900 if both
spouses age 65 and over) Married Filing Separately:
$3,650 (any age) Qualifying Widow/Widower:
$18,700 ($19,800 if age 65 and older)
Retirement Plan Limits
You can save for
retirement up to the maximum dollar limit. Maximum
contributions vary by the type of retirement plan:
Traditional or Roth IRA: $5,000 ($6,000 if
age 50 or older) SEP IRA: $49,000 SIMPLE
IRA: $11,500 ($14,000 if age 50 or older)
401(k) plan: $16,500 ($22,000 if age 50 or
older) 403(b) plan: $16,500 ($22,000 if age
50 or older) 457 plan: $16,500 ($22,000 if
age 50 or older) Defined Contribution Pension:
$49,000 Defined Benefit Pension:
$195,000 More information about retirement planning.
*If you fund both a traditional and Roth IRA, your
total contribution to cannot exceed $5,000 combined (or
$6,000 if age 50 or older). **SEP IRA contributions
are calculated on an IRS worksheet. Your maximum
contribution may be less than $49,000.
Standard Mileage Rate for 2009
You can deduct
the cost of driving a vehicle for business-use, for
traveling to a doctor, when relocating for a new job, or
when you are engaged in charitable activities. The 2009
standard rates for mileage are:
55 cents per mile for business,
24 cents per mile for medical or moving purposes,
and
14 cents per mile for charitable
service.
More information about deducting car and truck
expenses.
