2009 Tax Rates

Income Tax Brackets

The 2009 income brackets are as follows:

Single	Married- Jointly	Head of Household	Rate
$1 – 8,050	$1 – 16,700	$1 – 11,950	10%
$8,051 - 33,950	$16,701 - 65,100	$11,951 - 45,500	15%
33,951- 82,250	67,901- 137,050	45,501- 117,450	25%
82,251- 171,550	137,051- 208,850	11,451- 190,200	28%
171,551- 372,950	208,851- 372,950	190,201- 372,950	33%
Over 372,950	Over 372,950	Over 372,950	35%

 

2009 Exemptions
and Deductions

Personal Exemptions
The personal exemption for each qualifying dependent increased by $150 for 2009.

	2009	2008
Exemption	$3,650	$3,500

	2008 Phase Out
Single	$166,800
Married Filing Separately	$125,100
Married Filing Jointly	$250,200
Head of Household	$208,500

Estate Tax Exclusion

An estate tax return for a U.S. citizen or resident needs to be filed only if the gross estate exceeds the applicable exclusion amount, listed below.

Applicable Exclusion Amounts
Year	Exclusion Amount
2009	$3,500,000
2010	Unlimited – Taxes Repealed

Annual Exclusion for Gifts for 2009
A taxpayer can give $13,000 per person to any number of recipients in a calendar year without paying federal estate and gift tax. An unlimited amount can be given each year as long as no recipient receives more than $13,000. Gifts that qualify for this annual exclusion are never taxed-no gift tax is owed when the gift is made, and the gift is not taxed at death.

Standard Deductions

Standard Deductions for those who do not itemized are as follows:

	2009	2008
Single	$5,700	$5,450
Married Filing Separately	$5,700	$5,450
Married Filing Jointly	$11,400	$10,900
Head of Household	$8,350	$8,000

If 65 or over and/or blind add:	2009	2008
Single/ Head of Household	$1,400	$1,350
Married/ Surviving Spouse	$1,100	$1,050

2009 Alert: The real estate tax standard deduction is available again in 2009.  It is up to $500 (single) and $1,000 (married).

Itemized Deduction Phase Out

Deductions are reduced by 3% of every dollar of Adjusted Gross Income (AGI) over $166,800 ($83,400 if married filing separately) up to a maximum phaseout of 80% of your itemized deductions.  Medical expenses, investment interest, casualty losses and gambling losses are excluded.
2009 Alert: This phaseout amount is now reduced by 1/3 in 2008.

Standard Mileage Rates

	2009 Rate per Mile
Business Travel	55¢
Charitable Work	14¢
Medical	24¢
Moving	24¢

Social Security Tax Rates

The maximum wages subject to Social Security Tax (6.2%) increases to $106,800 in 2009.  The Medicare tax rate is 1.45% on all wages.