So what changes do we have in store for the 2009 tax year? Each and every year there are small changes to the ridiculously large and wordy tax code, but most of them will not effect the average taxpayer. (Good thing, really – who wants to know all of that stuff!) However, there are some that definitely will, so I went looking to see what they are…and here is what I found out:

The Income Tax Brackets Have Changed.

Singles:

10% Tax Bracket – $0-$8,350

15% Tax Bracket – $8,350-$33,950

25% Tax Bracket – $33,950-$82,250

28% Tax Bracket – $82,250-$171,550

33% Tax Bracket – $171,550-$372,950

35% Tax Bracket – $372,950+

Married Filing Jointly:

10% Tax Bracket – $0-$16,700

15% Tax Bracket – $16,700-$67,900

25% Tax Bracket – $67,900-$137,050

28% Tax Bracket – $137,050-$208,850

33% Tax Bracket – $208,850-$372,950

35% Tax Bracket – $372,950+

Married Filing Separately:

10% Tax Bracket – $0-$8,350

15% Tax Bracket – $8,350-$33,950

25% Tax Bracket – $33,950-$68,525

28% Tax Bracket – $68,525-$104,425

33% Tax Bracket – $104,425-$186,475

35% Tax Bracket – $186,475+

Head Of Household:

10% Tax Bracket – $0-$11,950

15% Tax Bracket – $11,950-$45,500

25% Tax Bracket – $45,500-$117,450

28% Tax Bracket – $117,450-$190,200

33% Tax Bracket – $190,200-$372,950

35% Tax Bracket – $372,950+

And here is some more income tax bracket info from my friend Ryan.

The Standard Deduction Went Up.

The standard deduction for single filers goes up to $5,700 from $5,450 last year.

For joint filers the deduction will be $11,400, which is up from $10,900.

The Amount You Can Save In Your 401K Retirement Account Went Up.

Under 50? You can now contribute $16,500 each year.

Over 50? You can now contribute $22,000 each year.

The Amount You Can Save In Your Traditional Or Roth IRA Account.

Under 50? You can now contribute $5,000 each year.

Over 50? You can now contribute $6,000 each year.

The Mileage Deduction Has Decreased.

In 2008 you were able to deduct $.585 per mile for business travel, but in 2009 that deduction has dropped to $.55 per mile. Just be sure you are actually traveling for business if you take this deduction!

The Gift Tax Exclusion Went Up.

The gift tax exclusion is now $13,000, up $1,000 from 2008. This means you can give up to $13,000 tax free to anyone else, up to a maximum of $1 million in your life. Wish I could give away that kind of money…

The Earned Income Tax Credit Has Gone Up.

The maximum tax credit for low and moderate income workers and families with two or more children is now $5,028, up from $4,824 in 2008. Income limit on this credit is now $43,415 for 2009, up from $41,646 last year.

Check out what Cash Money Life had to say about the increased 401k contribution limits in 2009 and please, let me know if I missed anything that should be on the list. These are probably the ones that will affect the most people, but maybe I missed a few? If so, let me know in the comments!