News

Child-Related Tax Changes
Information on adoption benefits, child's investment income, the definition of a qualifying child, and additional child tax credit.

Decreased Estimated Tax Payments for Qualified Individuals With Small Businesses
For 2009, qualified individuals with small businesses may be eligible to make smaller estimated tax payments.

Deduction for Credit or Debit Card Convenience Fees
If you pay your income tax (including estimated tax payments) by credit or debit card, you may be able to deduct convenience fees.

Deduction for Sales and Excise Taxes Imposed on Purchase of New Motor Vehicles
In 2009, you can deduct the state or local sales and excise taxes imposed on the purchase of a qualified motor vehicle after February 16, 2009, and before January 1, 2010.

Earned Income Credit
The earned income credit amounts have increased for 2009 and 2010.

Economic Recovery Payment
Information on new economic recovery payments and credits.

Education-Related Tax Changes
Information on education savings bond exclusion, hope and lifetime learning credits, tuition and fees deduction, and student loan interest deduction.

Health/Medical-Related Tax Changes
Information on Archer Medical Savings Accounts (MSAs), Health Savings Accounts(HSAs), and long-term care premiums.

Home/Residence-Related Tax Changes
Information on mortgage insurance premiums, residential energy credits, and sale of main home by employees of intelligence communities.

Income Averaging for Farmers and Fisherman
New rules apply for averaging farming and fishing income. Information on settlements from Exxon Valdez litigation.

Increase in Limit on Long-Term Care and Accelerated Death Benefits Exclusion
New limits on exclusion payments made under a long-term care insurance contract.

Increase in Personal Casualty and Theft Loss Limit
General rule for personal casualty or theft loss for 2009.

Maximum Tax Rate on Qualified Dividends and Net Capital Gain Reduced
There are changes to the maximum tax rate on qualified dividends and net capital gain.

Penalty for Failure to File Income Tax Return Increased
The failure to file penalty has increased.

Qualified Transportation Fringe Benefits
Changes to the monthly exclusion for commuter highway vehicle transportation and transit passes and reimbursement for reasonable expenses of qualified bicycle commuting.

Social Security and Medicare Taxes
The maximum amount of wages subject to the social security tax and Medicare tax has increased.

Standard Deduction Increased
The standard deduction increased.

Standard Mileage Rate
The standard mileage rate for business use of your vehicle, medical and move- related use and charitable use has decreased for 2009.

Unemployment Compensation
A portion of unemployment compensation received is excludable.

Wage Threshold for Household Employees
The social security and Medicare wage threshold for household employees is...

The information above is not an exhaustive list of all changes.  Please call our office and we can discuss your individual tax situation.

Cordially, 

George S. Mackey