From IRS web site - Please click on heading for more details |
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Tax Changes for Individuals |
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Alternative Minimum Tax (AMT)
There are several changes affecting Alternative Minimum Tax for 2008 and 2009.
Child-Related Tax Changes
Information on adoption benefits, child's investment income, and additional child tax credit.
Credit for Prior Year Minimum Tax
There are several changes to the credit for prior year minimum tax.
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.
Definition of "Qualified Military Benefit" Expanded
The definition of "qualified military benefit" is expanded.
Earned Income Credit
The earned income credit amounts have increased for 2008 and 2009.
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.
Exclusion of Income for Volunteer Firefighters and Emergency Medical Responders
For tax years beginning after 2007 and before 2011, gross income ...
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.
Itemized Deductions
The itemized deduction phaseout income limits have increased for 2008 and 2009.
Like-Kind Exchanges
The exchange of stock in a mutual ditch, reservoir, or irrigation company may qualify for nonrecognition of gain or loss under section 1031.
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.
New Rules for Children of Divorced or Separated Parents
For tax years beginning after July 2, 2008 (the 2009 calendar year for most taxpayers), new rules apply to allow the custodial parent to revoke a release of claim to exemption that was previously released to the noncustodial parent on Form 8332 or similar form.
Penalty for Failure to File Income Tax Return Increased
The failure to file penalty has increased.
Personal Exemptions
The deduction amount and phaseout income levels have increased for 2008 and 2009.
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.
Recovery Rebate Credit
See if you are eligible for the recovery rebate credit.
Residential Energy Credits
Information on residential energy credits.
Social Security and Medicare Taxes
The maximum amount of wages subject to the social security tax and Medicare tax has increased.
Special Limitation Period for Retroactively Excluding Military Retirement Pay
If you retire from the armed services based on years of service and are later given a retroactive service-connected disability rating by the VA, your retirement pay for the retroactive period is excluded from income up to the amount of VA disability benefits you would have been entitled to receive.
Special Rules for Individuals Impacted by Hurricanes Katrina, Rita, and Wilma
Did you claim a casualty or theft loss deduction?
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 increased for 2008.
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...
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Page Last Reviewed or Updated: July 09, 2009
Tax Changes for Businesses |
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5-Year Carryback of 2008 Net Operating Losses (NOLs) for Eligible Small Businesses (ESBs)
For 2008, you can choose a 3, 4, or 5-year carryback period for the part of your 2008 NOL that is an ESB loss.
Agricultural Chemicals Security Credit
The Food, Conservation, and Energy Act of 2008 added the agricultural chemicals security credit as part of the general business credit.
Alcohol and Cellulosic Biofuel Fuels Credit
There are several changes to alcohol and cellulosic biofuel fuels credits.
Biodiesel and Renewable Diesel Fuels Credit
There are several changes to the biodiesel and renewable diesel fuels credit.
Build America Bonds
Find out what a build America bond is and how to claim a credit.
Business Start-up and Organizational Costs
A separate election statement is no longer required to elect to deduct up to $5,000 of business start-up and organizational costs paid or incurred after September 8, 2008.
Cancellation of Debt
Certain businesses can make an irrevocable election to delay recognition income from the cancellation of business debt arising from the reacquisition of certain types of business debt repurchased in 2009 or 2010.
Capital Gain Tax Rate Reduction for Corporations With Qualified Timber Gain
Corporations with both a net capital gain and a qualified timber gain may have a reduced tax rate.
Carbon Dioxide Sequestration Credit
Carbon dioxide captured after October 3, 2008, from an industrial source may be eligible for a credit.
Changes to Investment Credit
There are several changes to the investment credit.
COBRA Premium Assistance Credit
The American Recovery and Reinvestment Act of 2009 (ARRA) allows a credit against employment taxes for providing COBRA premium assistance to assistance eligible individuals.
Credit for Employer Differential Wage Payments
Eligible small business employers may be able to claim a credit for differential wage payments.
Depletion
Changes to the taxable income limitation on percentage depletion for tax years 2007-2010.
Depreciation and Section 179 Expense
Section 179 deduction limits have increased, depreciation limits on certain electric vehicles have changed and the special depreciation allowance has changed for certain New York Liberty Zone property.
Disqualified Corporate Interest Expense Disallowed Under Section 163(j) and Related Information
For tax years beginning after 2007, corporations will use Form 8926, Disqualified Corporate Interest Expense Disallowed Under Section 163(j) and Related Information, to figure the amount of any corporate interest expense deduction disallowed by section 163(j).
Domestic Production Activities Deduction
For tax years beginning in 2007, 2008, or 2009, the percentage used to figure the domestic production activities deduction increases to 6%.
Election to Accelerate Certain Credits in Lieu of the Special Depreciation Allowance
Corporations and a certain automotive partnership can elect to accelerate certain credits.
Employer-Owned Life Insurance Contracts
Policyholders owning one or more employer-owned life insurance contracts may have to file a report.
Health Savings Accounts (HSAs)
Information on changes for Health Savings Accounts (HSAs).
Low-Income Housing Credit
Rules for the credit attributable to buildings placed in service after 2007.
Maximum Automobile Value for Using the Cents-Per-Mile Valuation Rule
An employer providing a passenger automobile for the first time for personal use by an employeeay use special rules for determining the value of the personal use.
Meal Expenses When Subject to "Hours of Service" Limits
Special rules for deducting business-related meal expenses.
New Forms to Adjust Employment Tax Returns
There are several new forms for adjusting employment tax returns.
Nonqualified Deferred Compensation Plans
There are new regulations on reporting requirements for amounts deferred under a nonqualified deferred compensation plan.
Original Issue Discount (OID)Tables
Contains latest version of OID tables. Prior year tables are also available.
Partial Exclusion Increased for Gain From Certain Small Business Stock
Exclusion of gain from the sale of qualifying small business stock is increased.
Penalty for Late Filing of a Partnership Return
The late filing penalty has increased for certain late filed partnership returns.
Penalty for Late Filing of an S Corporation Return
The late filing penalty has increased for certain late filed S-corporation returns.
Qualified Transportation Fringe Benefits
Monthly exclusion amounts have increased.
S Corporation Built-in Gains Tax
There is no tax imposed on the net built-in gain for a certain period.
Self-Employment Tax
The maximum amount of net earnings subject to the social security part of the self-employment tax has increased.
Social Security and Medicare Taxes
The maximum amount of wages subject to the social security tax and Medicare tax has increased.
Standard Mileage Rate
The standard mileage rate for business use of your vehicle, medical and move- related use and charitable use has increased for 2008.
Vehicle Credits
Information on new alternative motor vehicle credits.
Work Opportunity Credit
The qualified veterans group and high-risk youth groups have been expanded.
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Page Last Reviewed or Updated: October 09, 2009 |
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Page Last Reviewed or Updated: June 02, 2009
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Page Last Reviewed or Updated: July 09, 2009 |
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