Tax rate schedules and earned income credit: View these tax tables.

Social Security wage base increases from $102,000 to $106,800 for 2009, resulting in the maximum FICA tax paid in 2009 at $6,621.60.

Standard deduction: $11,400 MFJ and SS, $5,700 MFS, $5,700 single, $8,350 HOH

Personal exemption : $3,650. See phase-out schedule below.

Elective deferrals increase from $15,500 to $16,500.

Catch-up contributions for those age 50 or over increases from $5,000 to $5,500.

IRA contributions remain unchanged at $5,000 ($6,000 with catch-up contribution)

SIMPLE retirement plans: Maximum amount of compensation that may be deferred increases from $10,500 to $11,500.

Annual retirement plan compensation limits increase from $230,000 to $245,000. Defined contribution plan limits (Sec. 415) increase from $46,000 to $49,000.

Defined benefit plan limits increase from $185,000 to $195,000.

Key employee compensation definition changes from $150,000 to $160,000.

Hope Scholarship Credit maximum increases from $1,650 to $1,800.

Annual gift exclusion increases from $12,000 to $13,000.

Section 179 election to expense depreciable asset purchases: $133,000.



Note: This is not a complete list of all 2009 inflation adjusted items. Please give us a call to discuss an item in greater depth or to inquire about an item not on this list.

Disclaimer: This document represents a general overview of recent tax developments and should not be relied upon without an independent, professional analysis of how any of these provisions may apply to your specific situation. Any tax information contained in the body of this narrative was not intended or written to be used, and cannot be used, by the recipient for the purposes of avoiding penalties that may be imposed under the Internal Revenue Code or provisions of applicable state or local law.

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6/15/2012
Individuals: File second quarter estimated tax
Corporations: File second quarter estimated tax

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