New Tax Info for 2010: What Fun!!

Posted on April 26th, 2010

Ah yes, fellow PIBbers, we have all of the information on what’s happening with your federal taxes in 2010!  There are lots of interesting things going on, not the least of which is that 2010 is the ideal year to die and also the year to give all of your stuff away and not get whacked with gift taxation!  Woo Hoo!  Read on for more details on  exciting federal tax news! 

Many have written in to me and asked me to provide a (somewhat) comprehensive listing of the tax issues facing us in 2010.  As you were so nice in asking, I though that I would put together some information that should help you plan for 2010.  So, here’s some information, along with some good links, that should help you out for this year.

• Standard Deductions:
  • Married, Joint Returns:                    $11,400
  • Single Returns:                                    5,700
  • Married, Separate Returns:                  5,700
  • Head of Household Returns:              8,400
  • If Blind or Over Age 65; add $1,000 if married, $1400 if single or Head of Household
• Personal Exemption:
  • $3,650
• Kiddie Tax Exemption:
  • $1,900
• Gift and Estate Taxation:
  • Gift Tax Annual Exclusion:               $13,000
  • Highest Estate and Gift Tax Rate:     N/A (2010)
  • Estate Tax Exemption:                      Unlimited (2010)
  • Lifetime Gift Exemption:                   $1,000,000
  • GST Exemption:                                Unlimited (2010)
  • Annual Non-Citizen Spouse Gift:     $134,000
• Long-Term Capital Gains and Qualified Dividend Rates:
  • 10% and 15% brackets                      0%
  • Higher brackets:                              15%
  • Capital Gains on Collectibles:          28%
  • Unrecaptured 1250 Depreciation:    25%
• Alternative Minimum Tax (AMT) Exemption Amount:
  • Married, Joint:                                  $70,950
  • Single, Head of Household:               46,700
  • Married, Separate:                              35,475
    • Above amounts are from 2009
• IRA and Pension Plan Limits:
  • IRA Contributions:
    • Under age 50:           $5,000
    • Age 50 and over:        6,000
  • Phaseout for making IRA contributions:
    • Married, Joint:           $89,000 – $109,000 AGI
    • Single, HoH:               56,000 -  $ 66,000 AGI
    • Married, Separate:               0 -  $ 10,000 AGI
  • Phaseout for deducting Spousal IRA:
    
    • $167,000 – $177,000 AGI
  • Phaseout of Roth Contribution Eligibility:
    • Married, Joint:                      $167,000 – $177,000 Modified AGI
    • Single, HoH:                          105,000 – $120,000 Modified AGI
    • Married, Separate:                            0 -  $10,000 Modified AGI
  • SEP Contribution Limits:
    • Up to 25% of compensation, limit $49,000
    • Compensation to participate in a SEP:  $550
  • SIMPLE elective deferral:
    • Under age 50:              $11,500
    • Age 50 and Older:         14,000
  • 401(k), 403(b), 457 and SARSEP Elective deferral:
    • Under age 50:              $16,500
    • Age 50 and Older:         14,000
  • Annual Defined Contribution Limit:   $49,000
  • Annual Defined Benefit Limit:            $195,000
  • Highly Compensated Employee:         $110,000
  • Key Employee in Top Heavy Plans:     $160,000
  • Annual Compensation taken into account for Qualified Plans:   $245,000
  • Key Employee in Top Heavy Plans Makes:   $160,000
  • Retirement Tax Credit:
    • A percent tax credit for an IRA, 401(k), 403(b), or 457 Plan Contribution, in addition to deduction or exclusion IF:
      • Married, joint:             Below $55,000 Modified AGI
      • Head of Household:    Below $41,625 Modified AGI
      • Single, Married Sep:    Below $27,750 Modified AGI
  • Social Security:
    • Maximum Earnings subject to FICA Tax:     $106,800
  • Income (in retirement) causing Social Security Benefits to be taxable:
    • Married, Joint:
      • 50% taxable:  $32,000 Modified AGI
      • 85% taxable:  $44,000 Modified AGI
    • Single:
      • 50% taxable:  $25,000 Modified AGI
      • 85% taxable:  $34,000 Modified AGI
  • NOTE:  Loss of Social Security benefits:
    • In the years prior to full retirement, $1 in benefits will be lost for every $2 in earnings in excess of $14,160
    • In the year of full retirement, $1 in benefits will be lost for every $3 of earnings in excess of $37, 680 (applies to months of earnings prior to full retirement age)
    • There is no limit on earnings beginning the month an individual attains full retirement age

    I hope you have fun with this!  Please let me know if you need more fun tax stuff!

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Tags: 2010, 2010 Fun
Filed under Insurance News |

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