The law requires the IRS to make annual inflationary adjustments to a variety of tax numbers. Because 2009 inflation was minimal, most of these numbers will remain unchanged or change only slightly for 2010. Here are some of the key tax numbers you’ll use for your 2010 tax planning.
* ADOPTION TAX CREDIT increases to $12,170 for adoption of an eligible child.
* SECTION 179 maximum deduction decreases to $134,000. Phase-out threshold is $530,000. (It is generally expected that a stimulus law in early 2010 will increase these amounts to the 2009 levels of $250,000 and $800,000.)
* STANDARD MILEAGE RATE for business driving effective January 1, 2010, is 50¢ a mile. Rate for medical and moving mileage is 16.5¢ a mile. Rate for charitable driving remains at 14¢ a mile.
* ESTATE TAX is eliminated for 2010. (Congress is expected to retroactively reinstate the tax effective January 1, 2010.) The ANNUAL GIFT TAX EXCLUSION remains at $13,000.
* 401(k) maximum salary deferral remains at $16,500 ($22,000 for 50 and older).
* SIMPLE maximum salary deferral remains at $11,500 ($14,000 for 50 and older).
* IRA contribution limit remains at $5,000 ($6,000 for 50 and older).
* KIDDIE TAX threshold remains at $1,900. The tax applies up to age 19 (up to age 24 for full-time students).
* NANNY TAX threshold remains at $1,700.
* TRANSPORTATION FRINGE BENEFIT limit for vehicle/transit passes and qualified parking remains at $230.
* SOCIAL SECURITY taxable wage limit remains at $106,800. Retirees under full retirement age can earn up to $14,160 without losing benefits.
* AMERICAN OPPORTUNITY (HOPE) CREDIT maximum remains at $2,500.
* HSA CONTRIBUTION limit increases to $3,050 for individuals and to $6,150 for families. An additional $1,000 may be contributed by those 55 or older.