CCH and Thomson Reuters' RIA unit have calculated the inflation-adjusted amounts for tax brackets, standard deductions and exemptions for next tax season.
RIA predicts that the basic standard deduction for 2009 for joint returns and surviving spouses will be $11,400, up from $10,900 in 2008. For single taxpayers, RIA forecasts the standard deduction will be $5,700, up from $5,450 in 2008. For head of household, the amount will be $8,350, up from $8,000.
CCH predicts that a married couple filing jointly with total taxable income of $100,000 will pay $312.50 less in income taxes in 2009 compared to 2008. A single filer with taxable income of $50,000 will save $156.25 next year.
CCH predicted that single taxpayers and married taxpayers filing separately could see a $250 increase over 2008 in their standard deduction, to $5,700, while the standard deduction for joint filers will increase by $500 to $11,400. Heads of households will see an increase in their standard deduction of $350, to $8,350.
The additional standard deduction for those age 65 or older or who are blind, will rise $50 to $1,100 in 2009 for married individuals and surviving spouses, and $50 to $1,400 for single filers. The personal exemption amount will go up in 2009 by $150 to $3,650.
For an individual who can be claimed as a dependent on another's return, RIA predicts that the basic standard deduction for 2009 will be $950, up from $900 in 2008, or $300 (same as in 2008), plus the individual's earned income, whichever is greater. For 2009, the additional standard deduction for married taxpayers 65 or over or blind will be $1,100, up from $1,050 in 2008. For a single taxpayer or head of household who is 65 or over or blind, the additional standard deduction for 2009 will be $1,400, up from $1,350 in 2008.
The personal exemption amount for 2009 will rise to $3,650, up from $3,500 in 2008, according to RIA. The exemption from the kiddie tax for 2009 will be $1,900, up from $1,800 in 2008. A parent will be able to elect to include a child's income on the parent's return for 2009 if the child's income is more than $950 and less than $9,500, up from $900 and $9,000 in 2008. For 2009, CCH predicts the kiddie tax standard deduction will rise to $950.
CCH's projected tax brackets are available
RIA's projected tax brackets are below:
FOR MARRIED INDIVIDUALS FILING JOINT RETURNS
AND SURVIVING SPOUSES, THE 2009 RATE BRACKETS ARE:
If taxable income is: The tax is:
-------------------- -----------
Not over $16,700 10% of taxable income
Over $16,700 but not $1,670.00 plus 15% of the
over $67,900 excess over $16,700
Over $67,900 but not $9,350.00 plus 25% of the
over $137,050 excess over $67,900
Over $137,050 but not $26,637.50 plus 28% of the
over $208,850 excess over $137,050
Over $208,850 but not $46,741.50 plus 33% of the
over $372,950 excess over $208,850
Over $372,950 $100,894.50 plus 35% of the
excess over $372,950
FOR SINGLE INDIVIDUALS (OTHER THAN HEADS OF HOUSEHOLDS AND
SURVIVING SPOUSES), THE 2009 RATE BRACKETS ARE:
If taxable income is: The tax is:
-------------------- ----------
Not over $8,350 10% of taxable income
Over $8,350 but not $835.00 plus 15% of the
over $33,950 excess over $8,350
Over $33,950 but not $4,675.00 plus 25% of the
over $82,250 excess over $33,950
Over $82,250 but not $16,750.00 plus 28% of the
over $171,550 excess over $82,250
Over $171,550 but not $41,754.00 plus 33% of the
over $372,950 excess over $171,550
Over $372,950 $108,216.00 plus 35% of the
excess over $372,950
FOR HEADS OF HOUSEHOLDS, THE 2009 RATE
BRACKETS ARE:
If taxable income is: The tax is:
-------------------- -----------
Not over $11,950 10% of taxable income
Over $11,950 but not $1,195.00 plus 15% of the
over $45,500 excess over $11,950
Over $45,500 but not $6,227.50 plus 25% of the
over $117,450 excess over $45,500
Over $117,450 but not $24,215.00 plus 28% of the
over $190,200 excess over $117,450
Over $190,200 but not $44,585.00 plus 33% of the
over $372,950 excess over $190,200
Over $372,950 $104,892.50 plus 35% of the
excess over $372,950
FOR MARRIEDS FILING SEPARATE RETURNS, THE 2009 RATE
BRACKETS ARE:
If taxable income is: The tax is:
-------------------- -----------
Not over $8,350 10% of taxable income
Over $8,350 but not $835.00 plus 15% of the
over $33,950 excess over $8,350
Over $33,950 but not $4,675.00 plus 25% of the
over $68,525 excess over $33,950
Over $68,525 but not $13,318.75 plus 28% of the
over $104,425 excess over $68,525
Over $104,425 but not $23,370.75 plus 33% of the
over $186,475 excess over $104,425
Over $186,475 $50,447.25 plus 35% of the
excess over $186,475
FOR ESTATES AND TRUSTS, THE 2009 RATE
BRACKETS ARE:
If taxable income is: The tax is:
--------------------- -----------
Not over $2,300 15% of taxable income
Over $2,300 but not $345.00 plus 25% of the
over $5,350 excess over $2,300
Over $5,350 but not $1,107.50 plus 28% of the
over $8,200 excess over $5,350
Over $8,200 but not $1,905.50 plus 33% of the
over $11,150 excess over $8,200
Over $11,150 $2,879.00 plus 35% of the