This page updated 1-2009

Accountax CPA's
Main Mall, 835 Main Ave, Suite 204, Durango, CO 81301

Phone 970-2478694 FAX 970-259-2953
TAX LAWS EFFECTIVE FOR 2009

In your record keeping and preparation for your 2009 returns next year, there are many changes resulting from the new tax laws passed in 2008. Call us for a list of those changes.

  • The Child Credit for 2009 thru 2010 will remain at $1,000.
  • The maximum expenses for the Childcare credit are $6000 for 2 or more children.
  • Tax rates for capital gains and certain dividends will continue at 15% (0% to 10% for a few taxpayers). Unless they are increased or decreased as a result of the election.
  • The Estate Tax exemption will be $3.5 million for 2009 & the gift tax exclusion is $13,000 per recipient per giver.
  • Maximum IRA contributions remains at $5,000 for those under age 50. Taxpayers over age 50 can contribute $6,000 for 2009.
  • 401(k) contributuions will increase to $16,500 for 2009 + $5,500 catch-up for those age 50 & more.
  • Simple plan contributuions will be to $11,500, + $2,500 catch up for those over age 50.
  • SEP plan contributions can be 25% of compensation/net earnings up to a max of $49,000.
  • The Saver's Tax Credit continues for 2009, allowing a tax credit of up to 50% of retirement plan contributions for taxpayers earning less than $55,000 AGI.
  • Allowances for Educational IRA's have increased, but they are still not deductible. You should condsider the Colorado "Scholar's Choice" 529 plan which as many advantages, including deductibility of your contribution on your Colorado return.
  • Business auto mileage deduction for 2009 is 55 cents/mile. Medical miles is 24 cents/mile and charitable mileage is 14 cents/mile.
  • The Self employed health insurance deduction continues at 100% and applies to >2% s-corp shareholders.
  • The Section 179 depreciation write-off is $133,000 for 2009. The 50% bonus depreciation for capital assets expired 12-31-08, however, it is probable that the O'Bama administration will push for $250,000 179 depreciation and a 50% bonus. The credit for SUV's cut back to $25,000 max.
  • The Social Security wage base for 2009 will increase to $106,800.
  • The deduction for the higher of sales tax paid, or state income tax paid continues for 2009.
  • There is a new adjustment for real estate taxes paid for non-itemizers.
  • The 2008 AMT MFJ deduction was increased to $69,950. Congress will need to act to either increase the deduction for 2009, or perhaps eliminate the AMT (not likely).

CALL US IF YOU WOULD LIKE MORE DETAILS


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