Tax Law Update

Quick Facts for 2009 Individual Income Tax Returns

• Maximum Tax rate on Qualified Dividends and Net Capital Gain Reduced to 0%
  
• Earned Income for Additional Child Tax Credit reduced to $3,000.
  
• Adoption Benefits Increased to $12,150
  
• For tax years 2009 and 2010, there is a new education credit called the American opportunity tax credit (AOC). This is a modification of the Hope Credit.
  
• Under the American Recovery and Reinvestment Act, every taxpayer who receives unemployment benefits during 2009 is eligible to exclude the first $2,400 of these benefits.
  

• Have a question about any Individual Income Tax Items? Contact us.

Quick Facts for 2009 Estate and Gift Tax Returns

• Annual gift tax exclusion amount increased to $13,000 per donee
  
• An estate tax return for a U.S. citizen or resident needs to be filed only if the gross estate exceeds $3.5 million for decedents dying during 2009.

• Have a question about any Estate and Gift Tax Returns? Contact us.

Quick Facts for 2009 Business Tax Returns

• The Section 179 deduction for qualified asset purchases is $250,000 (adjusted for inflation)
  
• 100% of health insurance premiums paid by the self-employed can be deducted 'above-the-line'
  
• The standard mileage rate for business vehicles is 55 cents per mile.
  
• Meal Expenses when subject to “Hours of Service” limits increased to 80% deductible.
  
• The maximum amount of wages subject to the social security tax is $106,800. No limit on wages subject to Medicare tax.

• Have a question about any Business Tax Returns? Contact us.