What Are Some Of Highlights of the 2009 Tax Law Changes?

There are some very important tax law changes in 2009 that would impact many taxpayers in all income tax brackets. Some of the most significant changes are highlighted below.

1. Change in Personal Exemptions
For 2009, each personal exemption you can claim is worth $3,650, up by $150 from 2008.

2. Change in Standard Deductions
For 2009, the standard deduction for married couples filing a joint return rises to $11,400, up by $500 from 2008. For single filers, the amount increases to $5,700 in 2009, up by $250 over 2008. And heads of household can claim $8,350 in 2009, a jump of $350 from 2008. Also, the Non-itemizers who pay real estate taxes can claim even larger standard deductions. Joint filers can add in up to $1,000 of property taxes paid. Singles can add in up to $500 of real estate tax payments. Non-itemizers can also add any casualty losses that occurred in presidentially declared disaster areas.

3. Change in Tax Rate
Because of the high inflation in 2008, the 10%, 15%, 25%, 28%, 33% and 35% tax brackets all kick in at approximately 5% higher levels of income than in 2008.


Click here to find out more of these highlights.