2009 Tax Law Changes


Changes in legislation may affect your taxes this year. Use this chart to see a quick overview of the 2009 laws.

Provision

Explanation

Effective Date(s)

Additional Child Tax Credit

The income threshold for the Additional Child Tax Credit has been lowered to $3000 (Was $8500 for tax year 2008 only)

2009 & 2010

Unemployment Compensation

The first $2400 paid in 2009 is tax exempt 2009

Capital Gains Rate

Long term capital gains are 0% for taxpayers in the 10% and 15% brackets, and 15% for other taxpayers.

2009 & 2010

Refundable
First-time
Homebuyer
Credit

Extended through April 30th 2010 - $8000 for first time homebuyers and $6500 if you have lived in the same residence for an uninterrupted period of 5 years during the last 8 years. Call us if you have questions!

2009 - 2010

Vehicle Sales Tax Deduction

State & Local sales and excise tax for new vehicles may be claimed as an itemized deduction or added to standard deduction. Maximum per vehicle deduction is the tax on a vehicle costing $49,500.

2009

Casualty Theft & Loss

The $100 per casualty floor or individual casualty losses is raised to $500 per casualty. Federally declared casualty losses occurring in 2008 & 2009 not subject to the usual limitations.

2009

Depreciation

The maximum Section 179 deduction for 2009 is $250,000. A phase-out of this amount starts when more than $800,000 of qualifying property is placed in service during the tax year. Additional first-year 50% "bonus" depreciation is the default provision for property placed in service in 2008.

2009