Deduction changes for 2009 could mean more money in your pocket!

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If you’re not sure about deduction changes for this year, relax. We’ve got you covered right here. Changes for this year include:

  • The standard mileage rate for business use of a vehicle increased to 55 cents per mile (from 50.5 cents). The standard mileage rate of a vehicle used for medical reasons or vehicle use related to moving expenses is 24 cents per mile. Charitable mileage remains at 14 cents per mile. 
  • The maximum income subject to Social Security tax has increased to $106,800 (from $102,000). There is no income limit for Medicare tax.
  • The maximum IRA contribution has increased to $5,000 ($6,000 if the taxpayer is age 50 or older). 
  • The Alternative Minimum Tax (AMT) exemption amount has increased to $70,950 (from $69,950) for MFJ and QW, $46,700 (from $46,200) for Single and HOH, and $35,475 9from $34,975) for MFS).