2010 Key Tax Numbers

April 28, 2010by Hoy Grimm0

Individual Income Tax 

Single
If taxable income is: The tax is:
$8,375 or less 10% of taxable income
Over $8,375 to $34,000 $837.50 + 15% of excess over $8,375
Over $34,000 to $82,400 $4,681.25 + 25% of excess over $34,000
Over $82,400 to $171,850 $16,781.25 + 28% of excess over $82,400
Over $171,850 to $373,650 $41,827.25 + 33% of excess over $171,850
Over $373,650

$101,085.50 + 35% of excess over $373,650

 

Married Filing Jointly and Surviving Spouses
If taxable income is: The tax is:
$16,750 or less 10% of taxable income
Over $16,750 to $68,000 $1,675 + 15% of excess over $16,750

Over $68,000 to $137,300

$9,362.50 + 25% of excess over $68,000
Over $137,300 to $209,250 $26,687.50 + 28% of excess over $137,300
Over $209,250 to $373,650 $46,833.50 + 33% of excess over $209,250
Over $373,650 $100,085.50 + 35% of excess over $373,650

  

Married Filing Separately
If taxable income is: The tax is:
$8,375 or less 10% of taxable income
Over $8,375 to $34,000 $837.50 + 15% of excess over $8,337.50

Over $34,000 to $68,650

$4,681.25+ 25% of excess over $34,000
Over $68,650 to $104,625 $13,343.75 + 28% of excess over $68,650
Over $104,625 to $186,825 $23,416.75 + 33% of excess over $104,625
Over $186,825 $50,542.75 + 35% of excess over $186,825

  

Heads of Household
If taxable income is: The tax is:
$11,950 or less 10% of taxable income
Over $11,950 to $45,500 $1,195 + 15% of excess over $11,950
Over $45,500 to $117,650 $6,235 + 25% of excess over $45,500
Over $117,650 to $190,550 $24,260 + 28% of excess over $117,650
Over $190,550 to $373,650 $48,585 + 33% of excess over $190,550
Over $373,650 $105,095 + 35% of excess over $373,650

 

Trusts and Estates
If taxable income is: The tax is:
$2,300 or less 15% of taxable income
Over $2,300 to $5,350 $345 + 25% of excess over $2,300
Over $5,350 to $8,200 $1,107.50 + 28% of excess over $5,350
Over $8,200 to $11,150 $1,905.50 + 33% of excess over $8,200
Over $11,200 $2,895.50 + 35% of excess over $11,200

 

Corporations
If taxable income is: The tax is:
$0 to $50,000 15% of taxable income
Over $50,000 to $75,000 $7,500 + 25% of excess over $50,000
Over $75,000 to $10,000,000 $13,750 + 34% of excess over $75,000
Over $10,000,000 $3,388,250 + 35% of excess over $10,000,000
Personal Service Corporation Flat tax of 35%, regardless of income

  

Standard Deductions
Married Filing Jointly and Surviving Spouses $11,400 Married Filing Separately $5,700
Single $5,700 Head of Household $8,400
Married 65 or older or blind $1,100 additional Single 65 or older or blind $1,400 additional
Dependents $950    

 

Kiddie Tax
Applies to unearned income over $1,900 for children under 19 (or a full-time student under 24 whose earned income does not exceed half or his or her support for the year). Unearned income between $950 and $1,900 is taxed at child’s rate.

 

Itemized Deduction Phaseout
Married Filing Jointly, Single, and Head of Household $166,800 Married Filing Separately $83,400

 

Phaseout of $3,650 Personal Exemption
For 2010, taxpayers with AGI above a certain amount will no longer lose part of their deduction for personal exemptions and itemized deductions.

 

2009 AMT Exemption – 2010 Pending Congressional Action
Married Filing Jointly and Surviving Spouses $70,950 Married Filing Separately $34,475
Single $46,700 Head of Household $46,700

 

Health Savings Accounts (HSA) Maximum Contribution Limits
If taxable income is: The deduction limit is:
Self Only Coverage If under age 55: $3,050; if age 55-65, $4,000
Family Coverage If under age 55: $6,150; if age 55-65, $7,150

 

Investment Planning  

Long-Term Capital Gains Taxation – Sunset Year End 2010- Pending Congressional Action
Taxpayers in higher than 15% tax brackets 15%
Taxpayers in 15% or lower tax brackets 0%

 

Dividend Tax
Taxpayers in higher than 15% tax brackets 15%
Taxpayers in 15% or lower tax brackets 0%

 

Retirement Planning 

Qualified Plan Limits
401(k), SAR-SEP, Sec. 457,
403(b) Elective Deferral Limit
$16,500
SIMPLE Elective Deferral Limit $11,500
Section 415 Limit (Defined Contribution Plan) $49,000
Defined Benefit Plan Benefit Limit $195,000
Traditional and Roth IRA Contributions $5,000
Age 50+ Catch-Up for IRA and Roth IRA $1,000
Age 50+ Catch-Up for SIMPLE IRA $2,500
Age 50+ Catch-Up for 401(k),
403(b), 457, and SAR-SEP
$5,500
Annual Compensation Limit for QRPs, SEPs, and 403(b)s* $245,000
Highly Compensated Definition $110,000
Control Employee $95,000
Key Employee in Top-Heavy Plan Definition $160,000

 

Portability Rules
From: To:
Qualified Plan (i.e., 401(k)) – Both Taxable and After-Tax Contributions QP, Traditional IRA, SEP-IRA, 403(b), 457 Government Plan
403(b) 403(b), Traditional IRA, QP, SEP-IRA, 457 Government Plan
SIMPLE IRA SIMPLE IRA for first two years and any eligible retirement plan thereafter
Traditional IRA Deductible Contributions Traditional  IRA, QP, 403(b), 457 Government Plan
Roth IRA Roth IRA
457 Government Plan 457 Government Plan, IRA, QP, 403(b)
457 Nonprofit Plan 457 Nonprofit Plan

  

IRA Deduction Phaseout for Active Participants
Filing Status AGI Starting at Fully Phased Out At
Single or Head of Household and active participant in employer plan $56,000 $65,000
Married Filing Jointly and active participant in employer plan $89,000 $109,000
Married Filing Jointly and spouse active participant in employer plan $167,000 $177,000
Married Filing Separately and either spouse active participant in employer plan $0 $10,000

  

Income Limits for Roth Eligibility
Filing Status AGI Starting at Fully Phased Out At
Single $105,000 $120,000
Married Filing Jointly $167,000 $177,000
Married Filing Separately $0 $10,000

 

Business Planning 

Social Security Taxable Wage Base $106,800
Health Insurance Premium Deduction for Self-Employed 100%

 

2010 Standard Mileage Rates 

Charitable use of automobile:
1/1/10-12/31/10
14 cents/mile
Medical/Moving:
1/1/10-12/31/10
16.5cents/mile
Business use of automobile:
1/1/10-12/31/10
50cents/mile

Education Planning 

U.S. Savings Bond Interest Exclusion Phaseout Modified AGIs $105,100 to $135,100 (joint)

Modified AGIs $70,100 to $85,100 (others)

Coverdell Education Savings Accounts (Education IRAs)
Contribution Limit
$2,000 annually
Coverdell Education IRA Phaseout Modified AGIs $190,000 to $220,000 (joint)

Modified AGIs $95,000 to $110,000 (others)

$2,500 Maximum Hope Scholarship Credit

Modified AGIs $160,000 to $180,000 (joint)

Modified AGIs $80,000 to $90,000 (single)

$2,000 Lifetime Learning Credits Phaseout

Modified AGIs $100,000 to $120,000 (joint)

Modified AGIs $50,000 to $60,000 (single)

Phaseout of $2,500 Interest Deduction on Education Loans Modified AGIs $120,000 to $150,000 (joint)

Modified AGIs $60,000 to $75,000 (others)

Phaseout of $4,000 Tuition Deduction Expired after 2005
2008/2009 Tuition and Fees at 4-Year College Increase: 6.5% public college; 4.4% private
2008/2009 Room and Board at 4-Year College Increase: 5.4% public college; 5.4% private
Average Cost at 4-Year College $19,388/yr public (in state); $30,916/yr public (out-of-state); $39,028/yr private

 

Estate Planning 

Estate and Gift Tax Rates for Upper Brackets
Over To Tax Plus Of Excess Over
$1,000,000 $1,250,000 $345,800 41% $1,000,000
$1,250,000 $1,500,000 $448,300 43% $1,250,000
$1,500,000 $2,000,000 $555,800 45% $1,500,000
$2,000,000 $3,500,000 $780,800 45% $2,000,000
$3,500,000   $1,455,800 45% $3,500,000

  

Exclusions
Annual Gift Tax Exclusion per Donee $13,000
Annual Gift Exclusion to Non-U.S. Citizen Spouse $133,000
Estate Tax Exemption* $3,500,000
Lifetime Gift Tax Exemption $1,000,000
Generation Skipping Transfer Tax Exemption* $3,500,000
State Death Tax Credit (A deduction is allowed for death taxes paid to any state.) Repealed
Special Use Valuation Limit $1,000,000
 *2009 Amount: Unlimited in 2010; Sunset 2011; Pending Congressional Action

 

Long-Term Care 

Qualified Long-Term Care Insurance Deductions
Subject to 7.5% of AGI Medical Expense Floor
Age Limit
40 or less $330
41–50 $620
51–60 $1,230
61–70 $3,290
71 and over $4,110

 Indemnity Policies: Benefit payments above $290 a day that exceed the actual cost of insurance will be taxed as income. 

Medicaid
Community Spouse Resource Allowance

$21,912 minimum
$109,560 maximum

Monthly Maintenance Allowance $1,821 minimum $2,739 maximum
“Income Cap” State Income Limit $2,022 

 

Medicare
Medicare Part B Premium $96.40/month
Medicare Part B Deductible $135
Medicare Part A Deductible and Coinsurance $1,068
Medicare Part A Deductible for Skilled Nursing Facility in a Benefit Period $133.50/per day (21 to 100 days)

 Note: Taxpayers with higher incomes will pay Medicare Part B premiums of up to $308.30/month.

Social Security
CPI Increase in Benefits 5.8%
Maximum Benefit at Full Retirement $2,323/month

 

The foregoing is intended solely for informational purposes. Nothing contained herein should be construed as legal or tax advice, and should not be relied upon for such. Legal and tax advice should only be obtained from your attorney or qualified tax professional.

Hoy Grimm

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