News

IRS Announces New Mileage Rates for 2009

The new mileage rate is $55.00 cent a mile for business miles driven,
and 24 cents a mile for medical and moving miles. Charitable mileage
rate remains unchanged at 14 cents a mile.

2009 Payroll Tax Law Changes

Below is a brief summary of payroll tax changes:
1-The 2009 Social Security taxable wage limit will increase from
$102,000.00 to $106,800.00. Therefore, the maximum employee
social security tax withholding in 2009 increases from $,6324.00 to
$6,621.60. The Social Security and Medicare rates stay the same,
6.20% (SS) and 1/45% (MED).
2-California State disability (SDI) rate will increase from 0.80%
to 1.10%, and the wage limit will increase from $86,698.00 to
$90,669.00. Therefore, the maximum SDI withholding in 2009
increases to $997.69.

Below are the changes for retirement/defereed compensation:

1-SIMPLE retirement plans-stays the same as $11,500.
2-401K- $16,500.
3-Catch-up contribution for individuals age 50 or over for 401K
plans stays at $5,500, and for SIMPLE stays at $2,500.

First time homebuyer credit
You may be able to claim a credit of up to $7,500.00 if you are a
first time homebuyer and your modified adjusted gross income is
less than $95,000.00 ($170,000.00 if married filing jointly).