Tax Facts 2009 & 2010

It is critical to stay on top of the current tax rules so that you can take advantage of every way to save money. Below are the tax limits and rules.

• For the 2009 and 2010 tax years, the personal exemption amount is $3,650. You will claim a personal exemption for yourself, your spouse, and each of your dependents. For 2009, the exemption is phased out for taxpayers with an AGI over $166,800 (or $250,200 if married filing jointly); for 2010 the personal exemption phase out is repealed.
• The standard deductions for both 2009 and 2010 are $5,700 for single individuals, and $11,400 for married couples. When your allowable deductions exceed these limits, you will benefit from itemizing. For 2009, itemized deductions are reduced by 3% of a taxpayer's of AGI in excess of $166,800, and in 2010 this limit has been repealed.
• The maximum contibution into an IRA is $5,000 per individual for 2009 and 2010, with $1,000 catch-up if you're 50 or older. Remember, you have until April 15, 2010 to contribute to your IRA for 2009.
• Annual Gift Tax Exclusion amount is $13,000 in 2009 and 2010.
• Required Minimum Distributions (RMDs) from IRAs, 401(k), 403(b), Profit-Sharing, Money Purchase Pension, and certain 457 retirement plans are re-instated for 2010, after being waived for the 2009 tax year. If you turned 70 1/2 in 2009, you have until December 31, 2010 to take your first distribution.

Good Luck with your Taxes.