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Standard Auto Mileage Rate
Effective January 1, 2009, the standard auto mileage rate for business travel is 55.0
cents per mile. The mileage rate for charitable work is 14.0 cents per mile. The
mileage rate for medical travel or as part of a deductible move is 24.0 cents per mile.
Social Security Maximum
The maximum wages subject to Social Security Tax for 2009 is $106,800.00. There
is no wage limit for Medicare taxes.
Retirement Account Maximums
Effective January 1, 2009, the maximum 401(k) contribution is $16,500.00 with an
additional $5,500.00 for those over 50 years of age.
The maximum IRA contribution is $5,000.00 for 2009 with an additional $1,000.00
for those over 50. The maximum IRA contribution is limited to taxable compensation
if less and if the taxpayer has an employer sponsored plan. The AGI limit for
deductible IRA's in $109,000 for Married Filing Jointly.
The maximum SIMPLE contribution for 2009 is $11,500 with an additional $2,500
for those over 50.
The maximum ROTH contribution is $5,000.00 for 2009 with an additional $1,000.00
for those over 50. The AGI limit for Roth contributions begins phasing out at
$166,000.00 and is fully phased out at $176,000 for Married Filing Jointly.
The AMT exemptions are increased for 2009. The amounts are $70,950 for MFJ
and $46,700 for single taxpayers.
The first $2400 of unemployment benefits received in 2009 are excluded from gross
Changes in Estate and Gift Tax
The maximum estate tax rate is 45 percent in 2009. The amount that is excluded
from the federal estate tax will be $3,500,000 in 2009. The per donee annual gift
exclusion is $13,000 in 2009.
Child Tax Credit
The $1,000 child tax credit for those under 17 is now refundable to the extent of 15%
of the taxpayers income above a certain number (the "floor). For 2009 the "floor is
reduced to $3,000.
|What Tax Law Changes Are In Place For 2009?
|Certified Public Accountants