The Income Tax Brackets Have Changed.

Singles:

* 10% Tax Bracket - $0-$8,350
* 15% Tax Bracket - $8,350-$33,950
* 25% Tax Bracket - $33,950-$82,250
* 28% Tax Bracket - $82,250-$171,550
* 33% Tax Bracket - $171,550-$372,950
* 35% Tax Bracket - $372,950+

Married Filing Jointly:

* 10% Tax Bracket - $0-$16,700
* 15% Tax Bracket - $16,700-$67,900
* 25% Tax Bracket - $67,900-$137,050
* 28% Tax Bracket - $137,050-$208,850
* 33% Tax Bracket - $208,850-$372,950
* 35% Tax Bracket - $372,950+

Married Filing Separately:

* 10% Tax Bracket - $0-$8,350
* 15% Tax Bracket - $8,350-$33,950
* 25% Tax Bracket - $33,950-$68,525
* 28% Tax Bracket - $68,525-$104,425
* 33% Tax Bracket - $104,425-$186,475
* 35% Tax Bracket - $186,475+

Head Of Household:

* 10% Tax Bracket - $0-$11,950
* 15% Tax Bracket - $11,950-$45,500
* 25% Tax Bracket - $45,500-$117,450
* 28% Tax Bracket - $117,450-$190,200
* 33% Tax Bracket - $190,200-$372,950
* 35% Tax Bracket - $372,950+

The Standard Deduction Went Up.

* The standard deduction for single filers goes up to $5,700 from $5,450 last year.
* For joint filers the deduction will be $11,400, which is up from $10,900.

The Amount You Can Save In Your 401K Retirement Account Went Up.

* Under 50? You can now contribute $16,500 each year.
* Over 50? You can now contribute $22,000 each year.

The Amount You Can Save In Your Traditional Or Roth IRA Account.

* Under 50? You can now contribute $5,000 each year.
* Over 50? You can now contribute $6,000 each year.

The Mileage Deduction Has Decreased.

* In 2008 you were able to deduct $.585 per mile for business travel, but in 2009 that deduction has dropped to $.55 per mile. Just be sure you are actually traveling for business if you take this deduction!

The Gift Tax Exclusion Went Up.

* The gift tax exclusion is now $13,000, up $1,000 from 2008. This means you can give up to $13,000 tax free to anyone else, up to a maximum of $1 million in your life. Wish I could give away that kind of money…

The Earned Income Tax Credit Has Gone Up.

* The maximum tax credit for low and moderate income workers and families with two or more children is now $5,028, up from $4,824 in 2008. Income limit on this credit is now $43,415 for 2009, up from $41,646 last year.

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