2009 Federal Tax Announcements

IRS ANNOUNCES 2009 FEDERAL AMOUNTS FOR STANDARD DEDUCTIONS, TRANSPORTATION FRINGES & EARNED INCOME CREDIT

The standard deduction amounts for 2009 will increase to $11,400 for married couples filing jointly or surviving spouses; $8,350 for heads of households; $5,700 for single taxpayers and $5,700 for married taxpayers filing separately.

The transportation fringe amounts that may be excluded from gross income for 2009 for employer-provided “qualified transportation fringe benefits” are as follows:

  • $120 per month for “transportation in a commuter highway vehicle and any transit pass”
  • $230 per month for “qualified parking”

IRS has announced the new Earned Income Credit for 2009.  They are as follows:

  • Employees with 1 qualifying (dependent) child is 34% of the first $8,950 of earned income for a maximum of $3,043
  • Employees with 2 or more qualifying children, the EIC is 40% of the first $12,570 of earned income for a maximum of $5,028
  • Employees with no qualifying children, the EIC is 7.65% of $59,70 for a maximum of $457
  • Married employees filing jointly and earn less than $38,583 in 2009 and have at least 1 qualifying child can receive advance EIC payments up to $1,826 spread over their pay periods during the year

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HR Manager Donna Boyd , H&M Wagner & Sons

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