Important Tax Figures for 2010
The following table provides some important federal tax information for 2010, compared with 2009. Many of the dollar amounts are unchanged or have changed only slightly due to low inflation. Other amounts are changing due to legislation.
| Social Security/ Medicare | 2010 |
2009 |
| Social Security Tax Wage Base | $106,800 | $106,800 |
| Medicare Tax Wage Base | No limit | No limit |
| Individual Retirement Accounts | 2010 |
2009 |
| Roth IRA Individual, up to 100% of earned income | $ 5,000 | $ 5,000 |
| Traditional IRA Individual, up to 100% of earned Income |
$ 5,000 | $ 5,000 |
| Roth and traditional IRA additional annual "catch-up" contributions for account owners age 50 and older | $ 1,000 | $ 1,000 |
| Qualified Plan Limits | 2010 |
2009 |
| Defined Contribution Plan Dollar limit on additions on Sections 415(c)(1)(A) | $ 49,000 | $ 49,000 |
| Defined Benefit Plan limit on benefits (Section 415(b)(1)(A)) | $195,000 | $195,000 |
| Maximum compensation used to determine contributions | $245,000 | $245,000 |
| 401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2)) | $ 16,500 | $ 16,500 |
| 401(k), 403(b), 457 & SARSEP additional "catch-up" contributions for employees age 50 and older | $ 5,500 | $ 5,500 |
| SIMPLE deferrals (Section 408(p)(2)(A)) | $ 11,500 | $ 11,500 |
| SIMPLE additional "catch-up" contributions for employees age 50 and older | $ 2,500 | $ 2,500 |
| Compensation defining highly compensated employee (Section 414(q)(1)(B)) | $110,000 | $110,000 |
| Compensation defining key employee (officer) | $160,000 | $160,000 |
| Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c)) | $ 550 | $ 550 |
| Driving Deductions | 2010 |
2009 |
| Business mileage, per mile | 50 cents | 55 cents |
| Charitable mileage, per mile | 14 cents | 14 cents |
| Medical and moving, per mile | 16.5 cents | 24 cents |
| Business Equipment | 2010 |
2009 |
| Maximum Section 179 deduction | $134,000 * | $250,000 * |
| Phaseout for Section 179 | $530,000 | $800,000 |
| Transportation Fringe Benefit Exclusion | 2010 |
2009 |
| Monthly commuter highway vehicle and transit pass | $ 230 | $ 230 |
| Monthly qualified parking | $ 230 | $ 230 |
| Domestic Production Activities Deduction | 2010 |
2009 |
| Percent of qualifying business net income | 9 percent (6% for oil and gas companies) | 6 percent |
| Standard Deduction | 2010 |
2009 |
Married filing jointly |
$ 11,400 | $ 11,400 |
Single (and married filing separately) |
$ 5,700 | $ 5,700 |
Heads of Household |
$ 8,400 | $ 8,350 |
| Personal Exemption | 2010 |
2009 |
| Amount | $ 3,650 |
$ 3,650 |
Domestic Employees |
2010 |
2009 |
Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc. |
$ 1,700 | $ 1,700 |
Kiddie Tax |
2010 |
2009 |
| Net unearned income not subject to the "Kiddie Tax" | $ 1,900 | $ 1,900 |
| Estate Tax | 2010 |
2009 |
| Federal Estate Tax Exemption | repealed ** |
$3.5 million |
| Annual Gift Exclusion | 2010 |
2009 |
| Amount you can give each recipient | $13,000 | $ 13,000 |
* A stimulus law provided much larger Section 179 depreciation deductions for 2009. For 2010, however, the maximum deduction will revert back to a lower amount unless Congress takes further action.
** Under a 2001 law, the estate tax exemption was gradually increased and the tax rate levied on estates decreased. For one year only in 2010, the estate tax is repealed. However, several members of Congress have said they will work to put the estate tax back in place, retroactive to January 1, at 2009 rates ($3.5 million exemption/45 percent tax rate).