| Federal income tax laws are always changing. Law | | | | maximum amount that businesses can claim as a |
| makers spend the better part of every year | | | | deduction and, as such, represents the maximum |
| trying to figure out new ways to increase tax | | | | amount that can be claimed by individuals. |
| revenue. If you are not careful you could easily | | | | 3. Taxation of Unemployment Compensation - As |
| make a mistake when determining your tax | | | | our economy continues its decline more and more |
| liability. To help you avoid any penalties or fines | | | | people are filing for unemployment benefits. |
| associated with filing errors, here is a list of five | | | | Unfortunately, even these benefits are not |
| important changes to federal income tax laws | | | | exempt from being taxed. For 2009, a taxpayer |
| that you need to know now. | | | | may exclude only the first $2,400 of benefits |
| 1. First-time Homebuyer Credit - This credit is | | | | received. Any additional amounts are taxed at |
| perhaps the most popular of the credits available | | | | your current tax rate. |
| this year. To qualify for this $8,000 tax credit (or | | | | 4. Standard Deduction Increases - A majority of |
| $4,000 if you are married filing separately) a | | | | Americans take the standard deduction when filing |
| taxpayer cannot have owned another principle | | | | their taxes. Currently, the IRS estimates that two |
| residence in the last three years. | | | | out of every three people who file a return claim |
| Additionally, eligible homebuyers must have | | | | the standard deduction. It is fortunate then that |
| purchased their new home between January 1st | | | | the standard deduction amounts have increased |
| and November 7, 2009. This tax credit starts to | | | | yet again. 2009 amounts include:o Single - $5,700o |
| be phased out for married taxpayers who have | | | | Married filing separately - $5,700o Head of |
| modified adjusted gross incomes that exceed | | | | household - $8,350o Married taxpayers filing jointly |
| $150,000 ($75,000 for individuals). | | | | / qualifying widow(er)s - $11,400o Married |
| This tax credit has recently been expanded to | | | | taxpayers filing separately - $5,700 |
| include more homebuyers. First-time homebuyers | | | | 5. Exemption Increases - Exemptions are items |
| who purchase a home between November 7, | | | | that reduce your overall taxable income. In 2008 |
| 2009 and April 30, 2010 can now have modified | | | | each exemption was $3,500. This amount has |
| adjusted gross incomes of up to $225,000 | | | | been increased to $3,650 in 2009. Generally, you |
| ($125,000 for individuals) before the credit starts | | | | can deduct $3,650 for every deduction that you |
| to get phased out. | | | | claim. Once you adjusted gross income reaches a |
| 2. Standard Mileage Rates - Many times | | | | certain threshold, however, the amount of each |
| employers require individuals to drive their | | | | exemption allowed is reduced. |
| personal cars for company business. This could | | | | As our federal tax laws continue to evolve it is |
| include items such as requiring employees to pick | | | | crucial that you keep up with all of the major |
| up the mail, deposit money into bank accounts or | | | | changes. Spending a few minutes familiarizing |
| to take packages to the post office. When this | | | | yourself with these changes can potentially save |
| happens, employees may be allowed to request | | | | you from having to pay unnecessary penalties |
| monetary reimbursement, depending upon the | | | | and fees. |
| company's reimbursement policies. | | | | Always consult a certified accounting professional |
| The standard mileage rate for 2009 is 55 cents | | | | to ensure you are following the latest rules and |
| per mile for all business miles driven. This is the | | | | regulations. |