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Selection
 Individual Federal Income Tax Rates

Standard Deductions and Exemptions

Automobile Standard Mileage Rates

Retirement Plans and Social Security

Long-Term Care and Health Saving Accts

Business Depreciaiton and Section 179 Expense

Corporate Tax Rates

Fiduciary Tax Rates

Gift & Estate Tax

 

 
Tax Guide For 2009 and 2010
 
      
 
Individual Federal Income Tax Rates
                   
2009 Individual Income   2010 Individual Income
Taxes and Rates  Taxes and Rates
                   
      % on           % on
   Excess      Excess
Based Taxable Tax on Over Based Taxable Tax on Over
Income Base  Base Income Base  Base
Joint or Qualifying Widow(er)   Joint or Qualifying Widow(er)
                    -               -   10.00%                       -                  -   10.00%
            16,700         1,670   15.00%               16,750            1,675   15.00%
            67,900         9,350   25.00%               68,000            9,363   25.00%
          137,050        26,638   28.00%             137,300          26,688   28.00%
          208,850        46,742   33.00%             209,250          46,834   33.00%
          372,950      100,895   35.00%             373,650         101,086   35.00%
Single   Single
                    -               -   10.00%                       -                  -   10.00%
              8,350            835   15.00%                 8,375               838   15.00%
            33,950         4,675   25.00%               34,000            4,682   25.00%
            82,250        16,750   28.00%               82,400          16,782   28.00%
          171,550        41,754   33.00%             171,850          41,828   33.00%
          372,950      108,216   35.00%             373,650         108,422   35.00%
Head of Household   Head of Household
                    -               -   10.00%                       -                  -   10.00%
            11,950         1,195   15.00%               11,950            1,195   15.00%
            45,500         6,228   25.00%               45,550            6,235   25.00%
          117,450        24,216   28.00%             117,450          24,210   28.00%
          190,200        44,586   33.00%             190,200          44,580   33.00%
          372,950      104,894   35.00%             372,950         104,888   35.00%
Married filing Separately   Married filing Separately
                    -               -   10.00%                       -                  -   10.00%
              8,350            835   15.00%                 8,375               838   15.00%
            33,950         4,675   25.00%               34,000            4,682   25.00%
            68,525        13,319   28.00%               68,650          13,345   28.00%
          104,425        23,371   33.00%             104,625          23,418   33.00%
          186,475        50,448   35.00%             186,825          50,544   35.00%
2009 and 2010  Qualified Dividend Income Tax Rate is 15% (0% for lower brackets)
Standard Deductions and Personal Exemptions
Standard Deductions *   Personal Exemption 
  For       For
    FYE 2009   FYE 2010       FYE 2009   FYE 2010
Filing As:           Amount for each        
Married or        11,400     11,400   Taxpayer            3,650       3,650
Qualifying Widow(er)                
          Phase Out of Personal Exemption 
Separate or         5,700       5,700       For
Single               FYE 2009   FYE 2010
          Personal exemptions begin to phase out
Head of Household       8,350       8,400   after the following threshold amounts:
                For 2010 the phase- out for personal exemptions and Itemized deductions do not apply!
          Married or         250,200
Additional Blind or Elderly       Qualifying Widow(er)
Married         1,100       1,100   Separate         125,100
Unmarried         1,400       1,400   Single         166,800
          Head of Household       208,500
Taxpayer Claimed          950         950        
as Dependent [1]           
           
*Deduct the greater of standard or      
itemized deductions                  
          Phase Out of Itemized Deductions
[1] If an individual who can be claimed as a dependent on another's return has earned income, the standard deduction is the greater of $950 for 2009 and $950 for 2010 or $300 for 2009 and 2010 plus the earned income (but no more than the standard deduction).       For
    FYE 2009   FYE 2010
Filing as:        
Joint, Single, or         166,800    Does not Apply for 2010 
Head of Household    
       
Separate          83,400  
Automobile Standard Mileage Rates
Amount Per Mile for 2009   Amount Per Mile for 2010
                   
Use           Use        
Business        $         0.55   Business        $         0.50
Charity Work        $         0.14   Charity Work        $         0.14
Medical/Moving        $         0.24   Medical/Moving        $         0.17
Retirement Plans and Social Security
Retirement Plans   Social Security Taxes
  For       For
    FYE 2009   FYE 2010       FYE 2009   FYE 2010
Individual Retirement Accounts (IRAs)   Employee/with/Employer Match
Regular         5,000        5,000   SS Maximum Earnings         106,800    106,800
Additional if >50         1,000        1,000   Base Tax Rate   6.20%   6.20%
          Combined Tax Rate for    
Section 401(k) 403(b) or SAR-SEP   Employee & Employer 12.40%   12.40%
Regular        16,500      16,500            
Additional if >50         5,500        5,500   Medicare Max.Earnings Unlimited   Unlimited
          Base Tax Rate   1.45%   1.45%
Simple Plans (see 1 below)       Combined Tax Rate for    
Regular        11,500      11,500   Employee & Employer 2.90%   2.90%
Additional if >50         2,500        2,500            
          Combined Social Security and    
Defined Contribution Plans       Medicare Tax Rates   15.30%   15.30%
       49,000      49,000            
Defined Benefit Plans       Self Employed Individuals    
     195,000    195,000   Tax Rate on SS Earnings 12.40%   12.40%
          Tax Rate on Medicare Earnings 2.90%   2.90%
1-Simple Plans-An employer normally makes a            
contribution for each eligible employee in an            
amount equal to the employee's salary reduction            
contributions, up to a limit of 3% of     Earning Ceiling For Social Security
compensation. However, the employer can       For
reduce its contribution to 1% for as many  as two     FYE 2009   FYE 2010
years out of five, if employees are notified.   Below Full Retirement      
          Age [See 1 below ]   14,160   14,160
IRA Phase Out Considerations- If the taxpayer or At Full Retirement Age Unlimited   Unlimited
spouse is covered by an employer retirement            
plan, consideration must be given to a phase out   [ 1 ] In the year a person reaches full retirement age (FRA) (depending on your birth date), $1 in benefits is deducted for each $3 earned above the now repealed age 65–69 earnings limit (which is $37,680 in 2009 and $37,680 in 2010). However, only earnings before the month in which full retirement age is reached are considered. Thus, for example, someone who earned $40,680 in January through July 2009, before turning FRA in August 2009, would lose $1,000 in benefits for 2009.
limitation as shown in the table below    
         
2009 Phaseout Ranges for IRA's  
  Modified AGI  
Filing Status   Begins   Eliminated  
         
Single or          
Head of Household      55,000      65,000  
         
Married Filing Jointly (Taxpayer covered  
by employer plan        89,000    109,000            
                   
Married Filing Jointly (Taxpayer not covered            
by employer plan but                
Spouse is      166,000    176,000            
                   
2009 Roth IRAs   2010 Roth IRAs
Contributions are the same as Regular            
IRAs above.                    
                   
However, regardless whether or not  a   However, regardless whether or not  a
participant is in a qualified retirement plan   participant is in a qualified retirement plan
there is a phase out based upon AGI as follow: there is a phase out based upon AGI as follow:
  2009 Modified AGI       2010 Modified AGI
Filing Status   Begins   Eliminated   Filing Status   Begins   Eliminated
                   
Married Filing Joint or       Married Filing Joint or    
Qualifying Widow(er)    166,000    176,000   Qualifying Widow(er)         167,000    177,000
                   
Head of Household or         Head of Household or      
Single      105,000    120,000   Single           105,000    120,000
                   
Married Filing Separte             -      10,000   Married Filing Separte                -      10,000
Long-Term Care and Health Savings Accounts
Long-Term Care Insurance   Health Savings Accounts
  You may deduct this       For
  much of your   Contribution Limits 2009   2010
  Annual Premiums            
  For   Individual, self only          3,000       3,050
If you are Age:   2009   2010   Family Coverage            5,950       6,150
          Catch-up for those          1,000       1,000
Over 70         3,980       4,110   age 55 and older        
61 to 70         3,180       3,290            
51 to 60         1,190       1,230   For 2009, the minimum deductible for a
41 to 50            600         620   high-deductible health plan (HDHP) is
40 and under            320         330   $1,150 for self-only coverage and $2,300
          for family coverage. The maximum
          out-of-pocket limit is $5,800 for self-only
          coverage and $11,600 for family plans.

Capital Gains Rates and Estimated Tax Penalties
Capital Gains 2009 and 2010   Individual Estimated Tax Payments
      Top   Generally, an individual must pay 25% of a
      Capital   “required annual payment” by Apr 15,
      Gain   June 15, Sept.15 and Jan. 15 to avoid an
Holding Period       Rates   underpayment penalty. (For taxpayers
          whose adjusted gross income on their
12 months or less     35.00%   prior return was over $150,000 ($75,000 if
More than 12 months   15.00%   married filing separately), the prior year
Depreciation recapture       safe harbor in figuring 2009/2010
on real-estate       25.00%   estimated taxes is       
Collectibles and certain small               
business stock       28.00%   Prior Year Tax %       110.00%
          or         
          Current Year Tax %     90.00%
Business Depreciation & Section 179 Expense
Depreciation   Section 179 Expense
               
36-Month Assets (Straight-Line)Most software          
              For tax years
3-Year Assets (200% DB)Dies, molds, small       Beginning in
tools, certain horses             2009   2010
                   
5-Year Assets (200% DB)Autos, computers,            
typewriters, copiers, many types of equipment, Maximum expense        250,000    134,000
private aircraft                    
          Reduced $1 for        
7-Year Assets (150% DB)Farm equipment   $1 Amt in excess         800,000    530,000
                   
7-Year Assets (200% DB)Most manufacturing            
equipment, office furniture, printing            
equipment, oil and gas production equipment            
                   
27.5-Year Assets (Straight-Line)Rental houses,          
apartments, low-income housing              
                   
39-Year Assets (Straight-Line) Nonresidential            
buildings                    
Corporate Tax Rates
CORPORATION REGULAR TAX   Personal Service Corporations
Rates for 2009 and 2010            
      % on   A qualified personal service    
Based Taxable   Tax on   Excess   corporation is taxed at a Flat   
Income   Base   Over Base   Rate of       35%
                    -                   -   15%            
            50,000            7,500   25%            
            75,000          13,750   34%            
          100,000          22,250   39%   Corporation Capital Gain Rates
          335,000        113,900   34%   Capital gains are added to Gross income for
      10,000,000     3,400,000   35%   tax calculation.        
         15,000,000  and over    See Federal Chart             
Fiduciary Income Taxes and Rates
2009 Estate and Trust   2010 Estate and Trust
 Taxes and Rates   Taxes and Rates 
Based       % on   Based       % on
Taxable   Tax on   Excess   Taxable   Tax on   Excess
Income   Base   Over Base   Income   Base   Over Base
                   
                    -               -   15%                       -                  -   15%
              2,300            345   25%                 2,300               345   25%
              5,350         1,108   28%                 5,350            1,108   28%
              8,200         1,906   33%                 8,200            1,906   33%
            11,150         2,880   35%               11,200            2,896   35%
Gift and Estate Tax Rates
 Unified Rate Schedule for Gift Taxes   2007 Through 2009 Tax Rate Schedule
After Annual Exclusion    for Estates
and Unified Tax Credit   After Annual Exclusion
For Gifts Made in 2007 Through 2009   and Unified Tax Credit
Based       % on   Based       % on
Taxable   Tax on   Excess   Taxable   Tax on   Excess
Income   Base   Over Base   Income   Base   Over Base
                   
        1,000,000               -   41%           2,000,000                  -   45%
        1,250,000      102,500   43%   The top rate remains at 45% (2007-2009).
        1,500,000      210,000   45%            
The top rate remains at 45% (2007-2009).            
                   
Note - When this compilation was prepared,            
the estate tax is repealed effective for            
decedents who die after December 31, 2009.            
However, unlike the estate tax, the gift tax is not            
repealed.  The table at the right reflects the Unified            
Tax Credit.                    
                   
ESTATE AND GIFT TAX INFORMATION            
  For            
  2009   2010            
                   
Annual Gift Tax Exclusion                
per person          13,000      13,000            
                   
Lifetime Exemption                
Gift Tax     1,000,000   1,000,000            
Estate Tax     3,500,000   N/A            
                   
Unified Tax Credit                  
Gift Tax        345,800    345,800            
Estate Tax     1,455,800   N/A            
 
     
 

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