INFLATION ADJUSTMENTS WIDEN TAX BRACKETSWashington, D.C. - The Internal Revenue Service said that personal exemptions and standard deductions would rise in 2009 to keep pace with inflation, providing more than three dozen tax benefits.

The inflation adjustments will affect 2009 tax returns, which most taxpayers will file in 2010. The value of each personal and dependency exemption is $3,650, up $150 from 2008. The new standard deduction is $11,400 for married couples filing a joint return (up $500), $5,700 for singles and married individuals filing separately (up $250) and $8,350 for heads of household (up $350). Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, the IRS noted.

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