2009 Tax Changes for Individuals
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Alternative
Minimum Tax (AMT)
There are several changes affecting Alternative
Minimum Tax for 2009.
Child-Related
Tax Changes
Information on adoption benefits, child's
investment income, the definition of a
qualifying child, and additional child tax
credit.
Decreased
Estimated Tax Payments for Qualified Individuals
With Small Businesses
For 2009, qualified individuals with small
businesses may be eligible to make smaller
estimated tax payments.
Deduction
for Credit or Debit Card Convenience Fees
If you pay your income tax (including estimated
tax payments) by credit or debit card, you may
be able to deduct convenience fees.
Deduction
for Sales and Excise Taxes Imposed on Purchase
of New Motor Vehicles
In 2009, you can deduct the state or local sales
and excise taxes imposed on the purchase of a
qualified motor vehicle after February 16, 2009,
and before January 1, 2010.
Earned
Income Credit
The earned income credit amounts have increased
for 2009 and 2010.
Economic
Recovery Payment
Information on new economic recovery payments
and credits.
Education-Related
Tax Changes
Information on education savings bond exclusion,
hope and lifetime learning credits, tuition and
fees deduction, and student loan interest
deduction.
Health/Medical-Related
Tax Changes
Information on Archer Medical Savings Accounts (MSAs),
Health Savings Accounts(HSAs), and long-term
care premiums.
Home/Residence-Related
Tax Changes
Information on mortgage insurance premiums,
residential energy credits, and sale of main
home by employees of intelligence communities.
Income
Averaging for Farmers and Fisherman
New rules apply for averaging farming and
fishing income. Information on settlements from
Exxon Valdez litigation.
Increase
in Limit on Long-Term Care and Accelerated Death
Benefits Exclusion
New limits on exclusion payments made under a
long-term care insurance contract.
Increase
in Personal Casualty and Theft Loss Limit
General rule for personal casualty or theft loss
for 2009.
Itemized
Deductions
The itemized deduction phaseout income limits
have increased for 2009.
New
Rules for Children of Divorced or Separated
Parents
For tax years beginning after July 2, 2008 (the
2009 calendar year for most taxpayers), new
rules apply to allow the custodial parent to
revoke a release of claim to exemption that was
previously released to the noncustodial parent
on Form 8332 or similar form.
Penalty
for Failure to File Income Tax Return Increased
The failure to file penalty has increased.
Personal
Exemptions
The deduction amount and phaseout income levels
have increased for 2009.
Qualified
Transportation Fringe Benefits
Changes to the monthly exclusion for commuter
highway vehicle transportation and transit
passes and reimbursement for reasonable expenses
of qualified bicycle commuting.
Residential
Energy Credits
Information on residential energy credits.
Social
Security and Medicare Taxes
The maximum amount of wages subject to the
social security tax and Medicare tax has
increased.
Special
Limitation Period for Retroactively Excluding
Military Retirement Pay
If you retire from the armed services based on
years of service and are later given a
retroactive service-connected disability rating
by the VA, your retirement pay for the
retroactive period is excluded from income up to
the amount of VA disability benefits you would
have been entitled to receive.
Standard
Deduction Increased
The standard deduction increased.
Standard
Mileage Rate
The standard mileage rate for business use of
your vehicle, medical and move- related use and
charitable use have decreased for 2009.
Unemployment
Compensation
A portion of unemployment compensation received
is excludable.
Wage
Threshold for Household Employees
The social security and Medicare wage threshold
for household employees is...
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