Summary of Changes Affecting
your 2010 US Tax Return

Changes for 2010 are being compiled by IRS and will be published shortly.

The major source of changes affecting your 2009 returns comes from newly enacted legislation including the following:

Summary of 2009 Changes for Individuals

  • Income levels at which individuals must file income tax returns have increased for 2009
    Single individual (also individuals treated as unmarried for tax purposes $9,350
    Single individual, 65 or older $10,750
    Married individual, separate return $3,650
    Married couple, joint return $18,700
    Married couple, joint return, one spouse 65 or older $19,800
    Married couple, joint return, both spouses 65 or older $20,900
    Head of household $12,000
    Head of household, 65 or older $13,400
    Qualifying widow(er) (surviving spouse) $15,050
    Qualifying widow(er) (surviving spouse), 65 or older $16,150

  • Basic standard deduction amounts have increased for 2009
    Filing status 2009 standard deduction amount
    Married filing jointly and surviving spouses $11,400
    Married filing separately $5,700
    Head of household filers $8,350
    Single filers $5,700

  • The deduction for each personal exemption is $3,650 for 2009
  • Inflation-adjusted income amounts that trigger the reduction of allowable itemized deductions and personal exemptions for high-income taxpayers have increased for 2009
  • "Kiddie" tax amount is $1,900 for 2009
  • The standard mileage rate for all business use of a car is 55 cents per mile for 2009
  • Per diem rates under the high-low method of substantiating travel expenses are at $258 for high-cost localities and $163 for low-cost localities for travel on or after 10/01/09  
  • Student loan interest, up to $2,500 in 2009, may be deducted "above-the-line" by qualifying taxpayers
  • The transportation fringe benefit exclusion amount for employer-provided transit passes or vehicles is $120 per month in January and February 2009 and $230 per month in March through December 2009. The exclusion amount for employer-provided parking is $230 per month for all of 2009

Depreciation, Amortization and Depletion

  • The maximum Code Sec. 179 deduction for 2009 is $250,000

Tax Credits

  • For 2009, the maximum earned income credit for eligible taxpayers with no qualifying children is $457, with one qualifying child is $3,043, and with two or more qualifying children is $5,028
  • The child tax credit is $1,000 for 2009
  • The education tax credits (Hope and Lifetime Learning) are $2,500 and $2,000, respectively, for 2009

Withholding

  • The 2009 OASDI wage base for FICA and self-employment tax purposes is $106,800
  • The 2009 wage threshold for "Nanny Tax" reporting is $1,700