Evan Carmichael Top Header about About About facebook Twitter YouTube Google+

2009 Tax Changes Every Business Owner and Employee MUST Know



Free PDF Download
23 Tiny, Easy Tips to Use at Networking Events - By Merra Lee Moffitt

Name: Email:


Your money might go a little farther this year, thanks to new raised limitations of several common IRS deductions. Use this information to plan your savings and contributions and to take advantage of what good news there is going into 2009. 1. The maximum earnings subject to Social Security tax is now $106,800. The Social Security tax rate remains at 15.3%.

2. The maximum annual wage that someone under the normal retirement age can earn without a reduction of Social Security benefits is raised to $14,160.

3. The SSI COLA is 5.8% for payments beginning January 2009. Welcome relief in Medicare premiums is that these premiums will remain the same in 2009, now at $98.60.

4. The 15% marginal income tax rate begins at $16,700 taxable income for Married Filing Joint (MFJ) and $8,350 for single. The 25% marginal bracket begins at $67,900 MFJ and $33,950 single. The 28% marginal bracket begins at $137,050 MFJ and $82,250 single.

5. The personal exemption for 2004 is now $3,650. The standard deduction for Married Filing Joint (MFJ) is now $11,400 and $5,700 for single filers.

6. The business auto mileage deduction is now .58 cents per mile. In fact, that rate began July 1, 2008.

7. The child tax credit remains $1000 per child.

8. The long-term capital gains tax rate remains 15% if your marginal tax bracket is higher than 15%. It is 5% if your marginal tax bracket is 15% or lower. Qualifying dividends are now generally taxed at the same rate as long-term capital gains.

9. The Traditional IRA deductibility phase-out for MFJ has been raised to $65,000 to $75,000 and to $45,000 to $55,000 for Singles.

10. Eligibility phase out for Roth contribution begins at $105,000 for singles and for MFJ at $166,000. The Traditional and Roth IRA deduction maximums remain at $5000 with $1000 catch-up provision for age 50 and over.

11. The SIMPLE IRA deduction is now $11,500 with a catch-up provision of $2,500 for those 50 and over.

12. The 401K, 457,403(b) and SARSEP maximum contributions are now $16,500 with a catch-up increased from $5,500 to inflation-indexed if you are 50 or over.

13. The SEP IRA and Defined Contribution limits are now $49,000. The maximum salary that can be considered is $245,000.

14. Health Savings account maximum contributions for 2009 are now $5,950 for families and $2,300 for individual plans. Anyone age 55 or older can add an additional catch-up of $1000.


Related Articles

  Is it Really Going to be a Happy New Year?
  What are the important steps to examining employee motivation and reducing employee turnover
  Changes to Benefit plans - Proceed Carefully
  If you don’t take care of your employees… they won’t take care of your customers
  5 Ways to Energize Your Business for 2009
  Is the student ready?
  Employee Manuals: A Proven Way to Protect Your Business
  What is CEO Time?
  So you want to intergrate a successful employee incentive programs
  Transitioning New Employees Into the Workplace with Employee Mentoring Programs
  Changes to COBRA Require Employer Action
  More Discrimination Lawsuits Expected in 2010
  SEP-IRA vs SEP-401k: Which Retirement Plan To Choose
  Are You Looking for A New Start in 2009?
  Winning Brands don’t stop at Customer experience, but do Employee experience too!
  Changing to an Entrepreneurial Mindset
  Google US Search Share Reaches 63.2% in May 2009
  Cost-Cutting Actions Lead to Decline in Morale
  Why You Should Change Your Organization's Culture
  Mentoring in the Workplace

Home > Business-Coach > Merra Lee Moffitt > 2009 Tax Changes Every Business Owner and Employee MUST Know >

Free PDF Download
23 Tiny, Easy Tips to Use at Networking Events - By Merra Lee Moffitt

Name: Email:

About the Author: Merra Lee Moffitt

RSS for Merra Lee's articles - Visit Merra Lee's website
Merra Lee Moffitt, small business profitability coach and CFP spends all day, everyday guiding business owners, capturing their financial dreams and goals from their small business profits. Her small business clients find hidden profits using low cost, low risk tactics. She can be reached at, 888-920-2030 or by email at merralee@captureprofits.com. Check out www.captureprofits.com
Click here to visit Merra Lee's website.
Dashed Line

More from Merra Lee Moffitt
7 Ways to Follow Up Persistence without Being a Pest
How Small Business Owners Can Blog for Profits
Cut Payroll without Losing Employees in a ServiceBased Small Business
Does Your Client Pay Slow
A Business Dashboard is as Essential as a Car Dashboard

Related Forum Posts

Job titles Job titles
My entry My entry
Re: Moderators on vacation Re: Moderators on vacation
Post subject: It's Not Personal, just business Post subject: It's Not Personal, just business
Seeking advice on working procedure of Convenience Store Fra Seeking advice on working procedure of Convenience Store Fra

Share this article. Fund someone's dream.

Share this post and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
Share for a Cause
Featured Article



Worksheets
By: Evan Carmichael

Do you have what it takes to be an entrepreneur?

8 Powerful Steps to Finding Your Passion

Does your pitch suck?

Create a plan of attach to launch your new business.

8-Cover

Like this page? PLEASE +1 it! Evan Signature
Bottom Footer



Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Name:
Email:
Popular Articles

Steps to Reach Your Goal!

Starting a Business a Brave Move or a NoBrainer

Learn why you need to Manage your Anger!

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.