| |
Some
of those already in place are as follows:
-
If
you are 70 ½ years old or older, you can skip mandatory
payouts from your retirement plans without penalty in
2009, should you decide to do so.
-
The
maximum 401K contribution you can make to your employer
plan is $16,500 for those born after 1960 and $22,000
for those born before 1960. This is good news. Times are
tough, but the more you can contribute to your 401K plan
every year, the better off you will be later on.
-
The
estate tax exemption jumps to $3,500,000 in 2009, which
is up from $2,000,000 in 2008.
This means that an estate worth less than
$3,500,000 will owe no estate taxes in 2009. Any value
in excess of $3,500,000 is taxed at 45%.
-
The
annual gift tax exclusion rises to $13,000 per donee in
2009. This means
that you and your spouse, if married, can give
$13,000 each to as many individuals as you want without
any gift tax ramifications.
-
The
deductibility of long-term care premiums has increased
to $3,980 for those 71 or older, $3,180 for those 61 to
70, $1,190 for those 51 to 60, and $600 for those 41 to
50.
-
The
adoption tax credit also goes up again. In 2009, the
credit can be taken on an amount up to $12,150 of
adoption costs. Adoptions of special needs children get
the full $12,150 credit, even if the adoption costs are
less than $12,150.
My
next two or three “Tax Tips for IBOs” will focus on
additional changes to be made.
Be sure to check if any of these changes affect you
personally.
Joe
Learn more about
Joe DePetris, Jr., and IBO tax return preparation
and tax issues at
IBO Bookkeeping 101.
Find more
Tax Tips for IBOs from Joe DePetris, Jr., CPA.
This article is provided as an
educational resource for your guidance, and is
strictly informational. It does not constitute
legal, accounting, or other professional
counsel. Nothing included herein implies a
recommendation by the author, the
IBOA International, or
Amway Global, of any course or method of
regulatory compliance. Readers and users who
intend to take, or refrain from taking, any
action based on information contained herein
should first consult with their qualified tax
advisor, preferably a C.P.A., or appropriate
regulatory authorities.
|
|
