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.
