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Here are just a
few changes to keep in mind for the tax season:
ATM Tax-
Congress did pass the Alternative
Minimum Tax patch. This prevented some 20 million taxpayer from
being hit with additional taxes which would have averaged $2,000
per return.
Kiddie Tax- Next year the
IRS will change the rules for the kiddie tax. Currently children
under the age of 19 may be subject to their parent’s tax rate
for unearned income over
$1,800. Next year the age will increase to 24 if the child is a
full time student.
Roth Conversions-
The income limits on Roth conversions disappears in 2010. This
means if you have a traditional or nondeductible IRA, you will
be able to roll it over to a Roth regardless of income level.
Small Business and
Work Opportunity Act- Congress
enacted the Small Business and Work Opportunity Act. This
legislation increased section 179 deductions and also provided
for a tax credit of up to $5,000 per person for hiring certain
individuals. Contact On the Mark Tax Service BEFORE hiring
eligible individuals to ensure proper procedures are followed to
receive the credit.
Key Adjustments for
inflation:
Standard deduction:
Single $5,350
Married $10,700
Head of Household $7,850
Person exemption: $3,400 |
