2010 Tax Information

This tax section sponsored by:	Grant Thornton LLP National Tax Office 1900 M Street, NW, Suite 300, Washington, DC 20036 T 202.296.7800 \| F 202.833.9165 www.grantthorton.com taxconsulting@gt.com
PERSONAL EXEMPTION	$3,650 per person (none if filling as a dependent)
EXEMPTION PHASEOUT	There is no phaseout for exemptions in 2010. (Phaseout scheduled to return in 2011.)
MAXIMUM SALARY DEFERRALS	$16,500 for 401(k), 501(c), 457 and 403(b) plans. ($22,000 if over 50) $11,500 for Simple, $14,000 if 50 or older.
MAX. RETIREMENT PLAN CONTRIBUTIONS	IRA (Regular¹ and Roth²): $5,000; $6,000 if 50 or older Defined Contribution Plans: $49,000 Defined Benefit Plans: $195,000 ¹Phaseout of deductibility of IRA contributions begins at $89,000 (MFJ); $56,000 (S, HH, MFS) ²Roth phaseout begins at $105,000 AGI (S); $167,000 (MFJ); $0 (MFS)
STANDARD MILEAGE RATES	Business: 50 cents; Charity 14 cents; Medical/Moving 16.5 cents
ITEMIZED DEDUCTION PHASEOUT	There is no phaseout for itemized deductions in 2010. (Phaseout scheduled to return in 2011.)
PAYROLL TAXES	6.2 % Social Security tax levied on first $106,800 in wages. 1.45 % Medicare tax levied on all wages Household help: SS tax levied only after $1,700 paid.
KIDDIE TAX (Children under 19)	First $950 not taxed; $950 to $1,900 at child’s rate; over $1,900 at parents’ rate. (Kiddie tax also applies to college students under the age of 24 who do not provide over 1/2 of their own support.)
FOREIGN INCOME EXCLUSION	$91,500
SECTION 179 LIMIT	$500,000 (This is reduced by amount of sec 179 property that exceeds $2 million.)
CAPITAL GAINS RATES* ^{* There are special rates for many items, including collectibles, qulified small business stock and real property gain attributable to depreciation.}	Assets held 1 year or less: taxed at ordinary income rates Assets held more than 1 year: taxed at 15% (zero for taxpayers in 10% or 15% brackets)
CHILD TAX CREDIT	$1,000 for each child under age 17. Phaseout begins at $75,000 AGI (S); $110,000 (MFJ), and $55,000 (MFS).
AMT RATES	26% of income up to $175,000 ($87,500 (MFS)); 28% thereafter
AMT EXEMPTION	$33,750 (S, HH); $45,000 (MFJ); $22,500 (MFS) Phaseout of exemption begins at $150,000; $112,000 and $75,000, respectively. (As this issue went to print, Congress was considering a 2010 AMT “patch” that would significantly increase these exemption levels in 2010.)
QUALIFIED DIVIDEND INCOME	Taxed at 15% (zero for taxpayers in 10% or 15% brackets)
ANNUAL GIFT EXCLUSION	$13,000
ESTATE TAX EXCLUSION	Estate tax temporarily repealed for 2010
RETIREMENT PLAN WITHDRAWALS MANDATORY	Age 70 ½ (Required minimum distributions are reinstated for 2010 after a one-year waiver for 2009.)
HOME SALE EXCLUSION	$250,000(S), $ 500,000 (MFJ) (You must include gain on a pro-rata basis for any years after 2009 that your home was not used as your principal residence.)

For Single, Head of Household, Married Filing Joint/Surviving Spouse, and Married Filing Separate Returns: If you can be claimed as a dependent by another taxpayer, your standard deduction cannot exceed the greater of $950 or earned income plus $300.

SINGLE

HEAD OF HOUSEHOLD

Taxable Income	Tax Rate
$0 — $8,375	10%
$8,376 — $34,000	15%
$34,001 — $82,400	25%
$82,401 — $171,850	28%
$171,851 — $373,650	33%
Over $373,650	35%
* Standard deduction $ 5,700 (+$1,400 for each spouse age 65+ or blind, $2,800 for each spouse age 65+ and blind.)

Taxable Income	Tax Rate
$0 — $11,950	10%
$11,951 — $45,550	15%
$45,551 — $117,650	25%
$ 117,651 — $190,550	28%
$190,551 — $373,650	33%
Over $373,650	35%
* Standard deduction $8,400 (+$1,400 for each spouse age 65+ or blind, $2,800 for each spouse age 65+ and blind.)

MARRIED FILING JOINT/SURVIVING SPOUSE

MARRIED FILING SEPARATE RETURNS

Taxable Income	Tax Rate
$0 — $16,750	10%
$16,751 — $68,000	15%
$68,001 — $137,300	25%
$137,301 — $209,250	28%
$171,851 — $373,650	33%
Over $373,650	35%
* Standard deduction $11,400 (+ $1,100 for each spouse age 65+ or blind, $2,200 for each spouse age 65+and blind.)

Taxable Income	Tax Rate
$0 — $8,375	10%
$8,376 — $34,000	15%
$34,001 — $68,650	25%
$68,651 — $104,625	28%
$104,626 — $186,825	33%
Over $186,825	35%
* Standard deduction $ 5,700 (+ $1,100 for each spouse age 65+ or blind, $2,200 for each spouse age 65+and blind.) If you can be claimed as a dependent by another taxpayer, your standard deduction cannot exceed the greater of $950 or earned income plus $300.

CORPORATE TAX RATES

INCOME TAXES FOR ESTATES AND TRUSTS

Taxable Income	Tax Rate
$0 — $50,000	15%
$51,001 — $75,000	25%
$75,001 — $100,000	34%
$100,001 — $335,000	39%
$335,001 — $10,000,000	34%
$10,000,001 — $15,000,000	35%

$15,000,001 — $18,333,333	38%
Over $18,333,333	35%

Taxable Income	Tax Rate
$0 — $2,300	15%
$2,301 — $5,350	25%
$5,351 — $8,200	28%
$8,201 — $11,150	33%
Over $11,200	35%

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This article originally appeared in The Business Owner Journal, the periodical of choice for owners of small and midsize private businesses. All rights reserved, D.L. Perkins LLC. © 2012.

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2010 Tax Information

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