What's New on 2009 Tax Returns

Individuals

Income levels at which individuals must file income tax returns have increased for 2009.

Single individual	$9,350
Single individual, 65 or older	$10,750
Married, filing separate return	$3,650
Married, filing joint	$18,700
Married, filing joint, one spouse 65 or older	$19,800
Married, filing, both spouses 65 or older	$20,900
Head of household	$12,000
Head of household, 65 or older	$13,400
Qualifying widow(er)	$15,050
Qualifying widow(er) 65 or older	$16,150

Basic Standard Deduction amount have increased for 2009.

Married filing jointly and surviving spouses	$11,400
Married filing separately	$5,700
Head of household	$8,400
Single	$5,700

The deduction for each personal exemption is $3,650 for 2009.
"Kiddie" tax amount is $1,900 for 2009.
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 10/1/2009.
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 Jan & Feb 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

The maximum Code Section 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.