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%