IRS Introduces Five Tax Changes
February 26th, 2010 by aclazaro
Compared to last year, there are a few tax rules that were modified which you might notice on your 2009 return. Here are the five topping them:
1. Expanded IRA Deduction – If your 2009 qualified gross income is less than $65,000 or $109,000, married and have a joint return filed as well as have retirement plan covering you, then you qualify for IRA deduction.
2. The American Recovery and Reinvestment Act – ARRA provides a great leeway as tax incentives for people who are starting anew like buying a house for the first time, buying a new car, paying for college and the unemployed receiving compensation.
3. Rates for 2009 Standard Mileage – This applies to vehicles for business utilization (55 cents/mile) and vehicles operated for medical purpose (24 cents/mile).
4. Tax Adjustment for Children – $1,900 is the adjusted amount of taxable investment income at the parent’s rate provided for a child not subject to tax.
5. Majority Taxpayers Increase in Standard Deduction – All basic standard deductions have been increased for 2009 considerably as follows: $8,350 for household heads, $5,700 for separate filing returns for both married and single individuals, and $11,400 joint filing returns for married couples and widows/widowers.
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