NinjaTax - Blog - October 16, 2009 - Tax Adjustments for 2010

Tax Tip

If you receive more than $10,000 in cash in a business transaction, you might have to file special forms with the IRS. If you want to avoid this extra burden, you should always insist on check or electronic payments.

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October 16, 2009

Each year, the IRS adjusts many tax figures for inflation: things like tax brackets, amounts of the standard deduction, etc. In 2010, because of the low or non-existent inflation environment, many of these figures are unchanged or little changed. Here is an overview:

Tax Brackets

How to read this table.The following table presents applicable tax brackets by filing type. Each row gives the marginal tax rate, and each column gives the applicable dollar amounts. For example, a single individual making $100,000 would be taxed 10% on the first $8,375, 15% on the amount between $8,375 and $34,000, 25% on the amount between $34,000 and $82,400, and 28% on the amount between $82,400 and $100,000.

	Filing Status
	Single	Married - Separate	Married - Joint	Head of Household	Estate or Trust
10%	$0 to $8,375	$0 to $8,375	$0 to $16,750	$0 to $11,950	N/A
15%	$8,375 to $34,000	$8,375 to $34,000	$16,750 to $68,000	$11,950 to $45,550	$0 to 2,300
25%	$34,000 to $82,400	$34,000 to $68,650	$68,000 to $137,300	$45,550 to $117,650	$2,300 to $5,350
28%	$82,400 to $171,850	$68,650 to $104,625	$137,300 to $209,250	$117,650 to $190,550	$5,350 to $8,200
33%	$171,850 to $373,650	$104,625 to $186,825	$209,250 to $373,650	$190,550 to $373,650	$8,200 to $11,200
35%	$373,650+	$186,825+	$373,650+	$373,650+	$11,200+

Other Key Figures

Standard deduction

Single / MFS - $5,700
MFJ - $11,400
HoH - $8,400

Personal exemption - $3,650
Hope Credit (max) - $2,500
Earned Income Credit (max)

0 qualifying children - $457
1 qualifying child - $3,050
2 qualifying children - $5,036
3+ qualifying children - $5,666

Foreign earned income exclusion - $91,500
Gift tax exclusion - $13,000