2009 Tax Changes
As you prepare for the upcoming tax year, I thought you might find this brief rundown of 2009 tax changes useful.
- ADOPTION TAX CREDIT increases to $12,150 for adoption of an eligible child.
- SECTION 179 maximum deduction decreases to $133,000. Phase-out threshold is $530,000. (It is generally expected that a stimulus law in early 2009 will increase these amounts to the 2008 levels of $250,000 and $800,000.)
- STANDARD MILEAGE RATE for business driving effective January 1, 2009, is 55¢ a mile. Rate for medical and moving mileage is 24¢ a mile. Rate for charitable driving remains at 14¢ a mile.
- 401(k) maximum salary deferral increases to $16,500 ($22,000 for 50 and older).
- SIMPLE maximum salary deferral increases to $11,500 ($14,000 for 50 and older).
- IRA contribution limits remains at $5,000 ($6,000 for 50 and older).
- KIDDIE TAX threshold increases to $1,900 and applies up to age 19 (up to age 24 for full-time students).
- SOCIAL SECURITY taxable wage limit increases to $106,800. Retirees under full retirement age can earn up to $14,160 without losing benefits.
- HOPE CREDIT maximum remains at $1,800.
- HSA CONTRIBUTION limit increases to $3,000 for individuals and to $5,950 for families. An additional $1,000 may be contributed by those 55 or older.
Thanks to the late passage in 2008 of AMT patch legislation, the AMT exemption amounts for 2008 are $69,950 for joint filers, $34,975 for couples filing separately and $46,200 for single taxpayers and heads of household.
As always please consult your tax advisor to see how these changes will affect you.
Tom Neral, ‘94, CPA, MST
CPA Shareholder
Neral & Co., PA
2510 Belmar Blvd Ste I-14
PO Box 1727
Wall, NJ 07719
732.681.4595
Fax: 732.681.1003