This past week I’ve been getting all of my tax information together to make my final estimated tax payment for the one that’s due on January 15th. One thing I’ve realized during that time is that sometimes the tax information isn’t all that easy to find when you’re searching the IRS site. For example, if you’re looking to find what your marginal tax rate is, often you’ll end up in being referred to some obscure IRS .pdf document, that supposedly has the information you’re looking for, but when you open it, doesn’t. I thought I’d put out a quick post referencing the 2009 official IRS marginal tax rates for others out there looking for the information.
Official IRS Tax Rate Schedule Updates For Tax Year 2009
Here are the official IRS tax rate tables for the 2009 taxpaying season.
| Tax Bracket | Single | Married Filing Jointly |
|---|---|---|
| 10% Bracket | $0 – $8,350 | $0 – $16,700 |
| 15% Bracket | $8,350 – $33,950 | $16,700 – $67,900 |
| 25% Bracket | $33,950– $82,250 | $67,900 – $137,050 |
| 28% Bracket | $82,250 – $171,550 | $137,050 – $208,850 |
| 33% Bracket | $171,550 – $372,950 | $208,850 – $372,950 |
| 35% Bracket | $372,950+ | $372,950+ |
Things that have changed from last year. From IRS.gov:
- New standard deduction: The new standard deduction is $11,400 for married couples filing a joint return (up $500), $5,700 for singles and married individuals filing separately (up $250) and $8,350 for heads of household (up $350). Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes.
- Personal exemption has increased: The value of each personal and dependency exemption, available to most taxpayers, is $3,650, up $150 from 2008.
- Thresholds for the tax brackets have increased for each filing status: Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $67,900, up from $65,100 in 2008. This will help us as we’re just able to come in under the neew $67,900 threshold. Phew.
- Gift exclusion increases: The annual gift exclusion rises to $13,000, up from $12,000 in 2008.
- IRA contribution limits remain the same: IRA contribution limits have remained the same, with a limit of $5000 across account types. (Roth, Traditional, etc)
Closing Thoughts
No matter what happens every year, one thing is for sure. As long as you’re making income, you will be paying taxes. So if you’re going to be paying taxes, be sure to make the best of it. Be organized for tax season, take the income tax deductions that are available to you. Don’t forget about often forgotten tax credits like the home improvement tax credit, or deductions like the new car sales tax deduction. If you do, you’ll be leaving hundreds or even thousands of dollars on the table.
Are there tax credits or deductions that you think people should remember this year? Are there tips you can give to be more organized about your taxes? What do you think of the 2009 tax brackets? Do you come out better because of them?
Millions of people that are “making income” will not be paying taxes this year due to the slew of refundable credits: Additional Child Tax Credit, Earned Income Credit, Making Work Pay credit, First-Time Homebuyer Credit ($8,000!) and more. Millions will receive a refund of all of their federal withholding, plus thousands more. The Earned Income Credit was expanded this year for those with more than 2 children.