Tax Limitations: 2009

Estate and Gifting

Estate tax exclusion$3,500,000

Estate subject to Probate$100,000 +

Gift tax annual exclusion $13,000


Qualified Plans

Salary deferrals into 401(k), 403(b), and 457 Plans $16,500
Catch-up contribution (age 50+) $5,500

Defined Contribution $49,000
Defined Benefit $195,000

IRA and Roth IRA $5,000
            Catch-up contribution (age 50+) $1,000

IRA deduction phaseout for active participants:
            Single $55,000 - $65,000
            Married filing jointly (both active) $89,000 - $109,000
                        Only one active participant $166,000 - $176,000
            Married - filing separately $0 - $10,000

Roth IRA phaseout:
            Single $95,000 - $110,000
            Married filing jointly $166,000 - $176,000


Education

Coverdell Education Savings Account (ESA) phaseout:
            Single $95,000 - $110,000
            Married filing jointly $190,000 - $220,000

Hope & Lifetime Learning Credit phaseout:
            Unmarried $50,000 - $60,000
            Married filing jointly $100,000 - $120,000

Hope Credit - maximum of $1,800
            100% up to $1,200 of qualified expenses
            50% on next $1,200 of qualified expenses

Lifetime Learning Credit
            20% of the first $10,000 of qualified expenses

Student loan interest deduction phaseout:
            Unmarried $60,000 - $75,000
            Married filing jointly $120,000 - $150,000


Deductions

Personal Exemption $3,650
Standard Deduction:
            Single $5,700
            Head of Household $8,350
            Married filing jointly $11,400
            Married - filing separately $5,700

Phaseout of Itemized Deductions:
            Married - filing separately $83,400
            All others $166,800

Standard Mileage Use Rates:
            Business $0.55 per mile
            Charitable $0.14 per mile
            Medical or Moving $0.24 per mile


Social Security & Medicare

Social Security tax rate (employee) 6.20%
Social Security tax rate (self-employed) 12.40%
Social Security taxable wage base $106,800

Retirement earnings exempt amount* $14,160/year
* $1 in social security benefits will be withheld for every $2 in earning above this amount

Medicare tax rate (employee) 1.45%
Medicare tax rate (self-employed) 2.90%
Medicare taxable wage base Unlimited

Medicare Part B
Monthly premium $96.40
Deductible $135
Coinsurance 20%

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