Tax Changes for Individuals | |
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Alternative Minimum Tax (AMT) There are several changes affecting Alternative Minimum Tax for 2008 and 2009. Child-Related Tax Changes Information on adoption benefits, child's investment income, and additional child tax credit. Credit for Prior Year Minimum Tax There are several changes to the credit for prior year minimum tax. Earned Income Credit The earned income credit amounts have increased for 2008 and 2009. Economic Recovery Payment Information on new economic recovery payments and credits. Education-Related Tax Changes Information on education savings bond exclusion, hope and lifetime learning credits, tuition and fees deduction, and student loan interest deduction. Exclusion of Income for Volunteer Firefighters and Emergency Medical Responders For tax years beginning after 2007 and before 2011, gross income ... Health/Medical-Related Tax Changes Information on Archer Medical Savings Accounts (MSAs), Health Savings Accounts(HSAs), and long-term care premiums. Home/Residence-Related Tax Changes Information on mortgage insurance premiums, residential energy credits, and sale of main home by employees of intelligence communities. Increase in Limit on Long-Term Care and Accelerated Death Benefits Exclusion New limits on exclusion payments made under a long-term care insurance contract. Itemized Deductions The itemized deduction phaseout income limits have increased for 2008 and 2009. Like-Kind Exchanges The exchange of stock in a mutual ditch, reservoir, or irrigation company may qualify for nonrecognition of gain or loss under section 1031. Maximum Tax Rate on Qualified Dividends and Net Capital Gain Reduced There are changes to the maximum tax rate on qualified dividends and net capital gain. New Rules for Children of Divorced or Separated Parents For tax years beginning after July 2, 2008 (the 2009 calendar year for most taxpayers), new rules apply to allow the custodial parent to revoke a release of claim to exemption that was previously released to the noncustodial parent on Form 8332 or similar form. Penalty for Failure to File Income Tax Return Increased The failure to file penalty has increased. Personal Exemptions The deduction amount and phaseout income levels have increased for 2008 and 2009. Recovery Rebate Credit See if you are eligible for the recovery rebate credit. Residential Energy Credits Information on residential energy credits. Social Security and Medicare Taxes The maximum amount of wages subject to the social security tax and Medicare tax has increased for 2008. Special Limitation Period for Retroactively Excluding Military Retirement Pay If you retire from the armed services based on years of service and are later given a retroactive service-connected disability rating by the VA, your retirement pay for the retroactive period is excluded from income up to the amount of VA disability benefits you would have been entitled to receive. Special Rules for Individuals Impacted by Hurricanes Katrina, Rita, and Wilma Did you claim a casualty or theft loss deduction? Standard Mileage Rate The standard mileage rate for business use of your vehicle, medical and move- related use and charitable use has increased for 2008. Unemployment Compensation A portion of unemployment compensation received is excludable. Wage Threshold for Household Employees The social security and Medicare wage threshold for household employees is... |
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Page Last Reviewed or Updated: May 05, 2009