It's Tax Time Again ...!

It's time to file various tax returns once again. If any of the following tax deadlines will apply to you, circle the dates on your 2010 calendar.

* January 15 - 4th installment of 2009 estimated taxes for individuals (unless your 2009 tax return is filed by Feb. 1st & any taxes due are paid then)

* February 1 - Deadline for employers to provide 2009 W-2 statements to employees.

* February 1 - Employers must generally file annual federal unemployment tax returns.

* March 1 - Employers must submitt information returns (1099, W-2, ect.) to IRS

* April 15 - Individual income tax returns for 2009 due.

Not much change in IRS inflation-adjusted tax numbers for 2010

The IRS is required to adjust many tax numbers for inflation each year. Because there was little inflation last year, there's very little change in 2010 numbers. Here are the numbers you'll need for your 2010 planning.

* The standard mileage rate for business driving drops from 55¢ per mile to 50¢ per mile, effective January 1, 2010. The rate for medical and moving mileage drops from 24¢ per mile to 16.5¢ per mile. The general rate for charitable mileage remains at 14¢ per mile.

* The maximum earnings subject to social security tax remains at $106,800. The earnings limit for those under full retirement age is $14,160. For those at full retirement age, there is no earnings limit.

* The "nanny tax" threshold remains at $1,700 for 2010. If you pay household workers more than this amount during the year, you're responsible for payroll taxes.

* The "kiddie tax" threshold is unchanged for 2010. If your child under age 19 (under age 24 for students) has more than $1,900 of unearned income this year (e.g., dividends and interest income), the excess could be taxed at your highest rate.

* The maximum individual retirement account (IRA) contribution you can make in 2010 remains unchanged at $5,000 if you're under age 50 and at $6,000 if you are 50 or older.

* The maximum amount of wages employees can put into a 401(k) plan remains at $16,500. The 2010 maximum allowed for SIMPLE plans is $11,500. If you are 50 or older, you can contribute up to $22,000 to a 401(k) and $14,000 to a SIMPLE plan.

For details or for assistance as you begin your 2010 tax planning, give our office a call.

This newsletter provides business, financial, and tax information to clients and friends of our firm. This general information should not be acted upon without first determining its application to your specific situation. For further details on any article, please contact us.