Alternative Minimum Tax (AMT)There are several changes
affecting Alternative Minimum Tax for 2008 and 2009.
Child-Related Tax ChangesInformation on adoption benefits,
child's investment income, and additional child tax credit.
Credit for Prior Year Minimum TaxThere are several changes
to the credit for prior year minimum tax.
Decreased Estimated Tax Payments for Qualified Individuals With Small
BusinessesFor 2009, qualified individuals with small businesses may be
eligible to make smaller estimated tax payments.
Deduction for Credit or Debit Card Convenience FeesIf you
pay your income tax (including estimated tax payments) by credit or debit card, you may be able to
deduct convenience fees.
Deduction for Sales and Excise Taxes Imposed on Purchase of New Motor
VehiclesIn 2009, you can deduct the state or local sales and excise taxes
imposed on the purchase of a qualified motor vehicle after February 16, 2009, and before January
1, 2010.
Definition of "Qualified Military Benefit" ExpandedThe
definition of "qualified military benefit" is expanded.
Earned Income CreditThe earned income credit amounts have
increased for 2008 and 2009.
Economic Recovery PaymentInformation on new economic
recovery payments and credits.
Education-Related Tax ChangesInformation 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
RespondersFor tax years beginning after 2007 and before 2011, gross income
...
Health/Medical-Related Tax ChangesInformation on Archer
Medical Savings Accounts (MSAs), Health Savings Accounts(HSAs), and long-term care
premiums.
Home/Residence-Related Tax ChangesInformation on mortgage
insurance premiums, residential energy credits, and sale of main home by employees of intelligence
communities.
Income Averaging for Farmers and FishermanNew rules apply
for averaging farming and fishing income. Information on settlements from Exxon Valdez
litigation.
Increase in Limit on Long-Term Care and Accelerated Death Benefits
ExclusionNew limits on exclusion payments made under a long-term care
insurance contract.
Increase in Personal Casualty and Theft Loss LimitGeneral
rule for personal casualty or theft loss for 2009.
Itemized DeductionsThe itemized deduction phaseout income
limits have increased for 2008 and 2009.
Like-Kind ExchangesThe 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
ReducedThere are changes to the maximum tax rate on qualified dividends and
net capital gain.
New Rules for Children of Divorced or Separated ParentsFor
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 IncreasedThe
failure to file penalty has increased.
Personal ExemptionsThe deduction amount and phaseout income
levels have increased for 2008 and 2009.
Qualified Transportation Fringe BenefitsChanges to the
monthly exclusion for commuter highway vehicle transportation and transit passes and reimbursement
for reasonable expenses of qualified bicycle commuting.
Recovery Rebate CreditSee if you are eligible for the
recovery rebate credit.
Residential Energy CreditsInformation on residential energy
credits.
Social Security and Medicare TaxesThe maximum amount of
wages subject to the social security tax and Medicare tax has increased.
Special Limitation Period for Retroactively Excluding Military Retirement
PayIf 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
WilmaDid you claim a casualty or theft loss deduction?
Standard Deduction IncreasedThe standard deduction
increased.
Standard Mileage RateThe standard mileage rate for business
use of your vehicle, medical and move- related use and charitable use has increased for
2008.
Unemployment CompensationA portion of unemployment
compensation received is excludable.
Wage Threshold for Household EmployeesThe social security
and Medicare wage threshold for household employees is...
