1545 6th Street Ste 201
Green Bay, WI 54304
920-884-2233
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What Tax Law Changes Are In Place For 2009?
Standard Auto Mileage Rate
- 55 cents per mile for business
- 24 cents per mile for medical reasons or a deductible move
- 24 cents per mile for charitable purposes
Making Work Pay Credit
You may be able to take this credit if you have earned income from work.
Even if your federal income tax withholding is reduced during 2009 because of the credit,
you must claim the credit on your return to benefit from it.
The credit is 6.2% of your earned income but cannot be more than $400 ($800 if married filing jointly).
The credit is reduced if:
- Your modified AGI is more than $75,000 ($150,000 if married filing jointly)
- You take the government retiree credit
- You received a $250 economic recovery payment during 2009.
Government Retiree Credit
You can take this credit if you received a pension or annuity payment in 2009 for service performed
for the U.S. Government or any U.S. state or local government and the service was not covered by social security.
- The credit is $250 ($500 if married filing jointly and both you and your spouse receive a qualifying pension
or annuity).
- You cannot take the credit if you received a $250 economic recovery payment during 2009.
Cash for Clunkers
A $3,500 or $4,500 payment to buy or lease a new fuel-efficient automobile is not taxable for federal income tax purposes.
Unemployment Compensation
Each recipient of unemployment compensation can exclude from gross income up to $2,400
of the amount he or she received during the year.
Exclusion from Income for Certain Cancellation of Debt on Principal Residence
The Mortgage Forgiveness Debt Relief Act of 2007 allows individuals to exclude from gross income
a discharge of qualified principal residence indebtedness. This exclusion applies to discharges made in 2007, 2008 and 2009.
Maximum Tax Rate on Qualified Dividends and Net Capital Gain Reduced
The 5% maximum tax rate on qualified dividends and net capital gain
(the excess of net long-term capital gain over net short-term capital loss) is reduced to 0%.
The 15% maximum tax rate on qualified dividends and net capital gain has not changed.
First-Time Homebuyer Credit
Additional Standard Deduction for Real Estate Taxes
In addition to the annual increase due to inflation adjustments, your 2008 standard deduction is increased by:
- Any real estate taxes you paid that would be deductible on Schedule A if you were itemizing deductions, up to $500 ($1,000 if married filing jointly)
- Any net disaster loss from a federally declared disaster
Special Tax Breaks for Victims of Midwestern Disaster Areas
A number of special tax breaks to help the economic recovery of individuals and businesses damaged by 2008 storms passed.
If you live or own property in an area that is a presidentially declared disaster zone, you should consult with us to determine if any of those
provisions might be helpful to you.
A Midwestern Disaster Area is an area for which a major disaster was declared by the President during the period
beginning on May 20, 2008, and ending on July 31, 2008, in the state of Arkansas, Illinois, Indiana, Iowa, Kansas,
Michigan, Minnesota, Missouri, Nebraska, or Wisconsin, as a result of severe storms, tornadoes, or flooding that
occurred on the applicable disaster date.
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