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Mileage Rates

2010:    Standard Mileage Rate:      $0.50 / mile        Medical Mileage Rate:    $0.16/mile        Charitable Mileage Rate: $0.14/mile

2009:    Standard Mileage Rate:      $0.55 / mile        Medical Mileage Rate:    $0.24/mile        Charitable Mileage Rate: $0.14/mile

Retirement Plan Contribution Limits

Plan Type 2008 2009 2010
IRA (Age 49 & Below) $5,000 $5,000 $5,000
Catch-up for IRA (Over 50) $1,000 $1,000 $1,000
Defined Contribution Plans $46,000 $49,000 $49,000
401(k), 403(b), & SAR-SEP $15,500 $16,500 $16,500
Catch-up for401(k), 403(b), & SAR-SEP $5,000 $5,500 $5,500
Simple Plan $10,500 $11,500 $11,500
Catch-up for Simple Plan $2,500 $2,500 $2,500
Max Compensation for Determining Contributions $230,000 $245,000 $245,000
Compensation limit for SEP participant exclusion $500 $550 $550
Social Security Taxable Wage Base $102,000 $106,800 $106,800

2009 Personal Income Tax Rates

Marginal Tax Rate

Single

Married Filing Jointly or Qualified Widow(er)

Married Filing Separately

Head of Household

10% $0 – $8,350 $0 – $16,700 $0 – $8,350 $0 – $11,950
15% $8,351– $33,950 $16,701 – $67,900 $8,351 – $33,950 $11,951 – $45,500
25% $33,951 – $82,250 $67,901 – $137,050 $33,951 – $68,525 $45,501 – $117,450
28% $82,251 – $171,550 $137,051 – $208,850 $68,525 – $104,425 $117,451 – $190,200
33% $171,551 – $372,950 $208,851 – $372,950 $104,426 – $186,475 $190,201 - $372,950
35% $372,951+ $372,951+ $186,476+ $372,951+

2009 Corporate Tax Rates

Marginal Tax Rate

Taxable Income

15% $0 - $50,000
25% $50,001 - $75,000
34% $75,001 - $100,000
39% $100,001 - $335,000
34% $335,001 - $10,000,000
35% $10,000,001 - $15,000,000
38% $15,000,001 - $18,333,333
35% $18,333,334+

IRA Required Minimum Distributions (RMD)

Calculate by dividing the value of the IRA by the distribution period corresponding with your age.  For example if you were 70 1/2 and your IRA was worth $100,000 your RMD would be $3,650 ($100,000 / 27.4).  Note: If your spouse is the sole beneficiary of the IRA and is more than 10 year younger than you, you must use a different chart.

Age of retiree
Distribution period (in years)
Age of retiree
Distribution period (in years)
70
27.4
93
9.6
71
26.5
94
9.1
72
25.6
95
8.6
73
24.7
96
8.1
74
23.8
97
7.6
75
22.9
98
7.1
76
22.0
99
6.7
77
21.2
100
6.3
78
20.3
101
5.9
79
19.5
102
5.5
80
18.7
103
5.2
81
17.9
104
4.9
82
17.1
105
4.5
83
16.3
106
4.2
84
15.5
107
3.9
85
14.8
108
3.7
86
14.1
109
3.4
87
13.4
110
3.1
88
12.7
111
2.9
89
12.0
112
2.6
90
11.4
113
2.4
91
10.8
114
2.1
92
10.2
115 or older
1.9

 

                                                                                                                                                           

Miscellaneous Tax Limitations   2009 2010
Estate Tax Exemption Amount $3.5 million   To Be Announced
Gift Tax Exclusion (Per Person)  $13,000   $13,000
     
Section 179 Limit     $250,000   $250,000
Section 179 Phase-out (Property Placed in Service)   $800,000  $800,000  
SUV Section 179 Limitation     $25,000 $25,000
     
HSA Contribution Limit (Individual)    $3,000  $3,050
HSA Contribution Limit (Family)  $5,950   $6,150
     
Max Exclusion of Unemployment Benefits   $2,400 $0
     
Max Sales Tax Deduction on New Vehicles $2,970 $0
     
Dependents Required to File If Earned Income Exceeds $5,700 $5,700
     OR  Unearned Income Exceeds $950 $950

Retirement Plan Information

  SEP IRA

(SELF-EMPLOYED)

SEP IRA

(EMPLOYEE)

SIMPLE IRA DEFINED BENEFIT DEFINED CONTRIBUTION

(PROFIT SHARING)

COMBINATION DEFINED-BENEFIT, DEFINED CONTRIBUTION 401(K) 403(B)
Eligibility to Participate Any self employed individual. Employee at least 21 that worked for employer in 3 of the last 5 years and received at least $550 in compensation Employers with fewer than 101 employees.  Must be offered to employees earning at least $5K in any prior two years Corps. can set up qualified pension plans as either defined benefit, contribution, or both.  Employees must be 21 with one year of service (1K hours).  Sole proprietors and partners can set up plans for themselves and employees. Employees at least 21 with 1yr service (1K hours) Employees of tax exempt organizations including self-employed clergy
Maximum Contributors Allowed 20% of SE Income after SE tax deduction up to max of $49K 25% of wages up to a max of $49K (plans prior to 1997 follow 401k rules) $11,500 ($14,000 if 50 or older) Employer can match up to 3% or contribute 2% of wages to all employees (even non- participating) Actuarially determined. Limited to 100% of average compensation for three consecutive years of highest compensation (limited to $245K) but not to exceed $195K Up to lesser of 100% of compensation or $49K.  Compensation limit $245K.  Employer deduction limited to 25% of aggregate compensation for all participants (20% of net SE income after SE tax deduction) Greater of 25% of wages or amount necessary to meet minimum funding standard of defined-benefit plan $16,500 ($22,000 for 50 or older). Employer to 25% of combined wages.  Combined employer/employee contribution limited to 100% of wages up to $49K. $16,500 ($22,000 for 50 or older).  Special formula applies for employer contributions based on years of service. Combined employer/employee contribution limited to 100% of wages up to $49K.
Penalties for Early Withdrawal (Before 59 1/2) 10% of Distribution (Exceptions Available) 10% of Distribution or 25% if participated less than 2 years 10% of Distribution (Exceptions Available)
Age Withdrawals Must begin 70 1/2 but contributions can still be made if there is earned income. 70 1/2 for self-employed and 5% owners; 70 1/2 or year of retirement (whichever is later) for all other employees
Date to Start Plan and Make Contributions Return Date (including extensions) Establish by 10/1/09 for new plans. Make contribution by return due date (including extensions) Dec. 31 to establish plan.  Return due date (including extensions for contributions).  8 1/2 months after year-end for defined benefit contributions. Dec. 31 to establish plan.  For employer contributions, return due date (including extensions)
Employer Contribution Required? No Yes No Maybe Generally no
Borrowing Permitted? No Yes if plan permits.  Must pay back in 5 years unless used to buy principal residence.
Lump Sum Counts for Averaging? No Yes No
Rollover Allowed? Yes
Penalty for Excess Contributions? 6% excise tax for both SE and employees if excess is not withdrawn by due date.  Employers are subject to 10% excise tax on excess contributions (unless exceptions apply). 10% penalty For Employee Deferrals, no penalty if withdrawn before 4/15/10.  Otherwise taxed twice (in year of deferral and at distribution).

For Employers, 10% penalty on excess unless distributed (with earnings) to highly compensated employee within 2 1/2 months of close of plan year.  Failure to distribute causes plan to fail to be a qualified retirement plan until corrected.

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