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Telephone: (206) 842-8951 Fax: (206) 855-9483 2009 Taxes
The recent spurt in inflation is actually good news for taxpayers next year.Several tax breaks will be much higher in 2009 because they are indexedto inflation, which has increased a whopping 5.4% over the previous 12 months.
The annual gift tax exemption will rise to $13,000 per recipient next year,a $1,000 increase. That amount doubles to $26,000 if the spouse joins in the gift.
The personal exemption will soar to $3,650 next year, up from $3,500 now.And standard deductions will be much larger in 2009. For married filers,the basic standard deduction will be $11,400, a $500 jump. For singles, $5,700...$250 higher than now. And for household heads, $8,350, $350 above 2008’s level.Marrieds 65 and up will get an extra $1,100. Singles and household heads, $1,400.
The new credit for first-time home buyers goes on a new form...Form 5405.Filers will then transfer the amount of the credit to line 69 of the 1040. Remember,folks who haven’t owned a primary home during the past three years can get a creditof up to $7,500 for buying a main home after April 8, 2008 and before July 1, 2009.The credit phases out for married couples with AGI between $150,000 and $170,000and $75,000 to $95,000 for singles. Starting in 2010, it’s recaptured over 15 years.
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