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Fast tax facts 2010.

The online version of fast tax facts will be updated for tax law changes. Check it out at www.calcpa.org/fasttaxfacts.

special thanks to: Rebecca Christiansen, CPA and Brooke Sigler of Windes & McClaughry Accountancy Corporation, and the FTB for compiling this information.

Welcome to our annual at-a-glance compilation of federal and state tax information. User-friendly tax rate schedules, facts, figures and assorted data make this time-saving section a handy companion. Keep it within arm's reach as you enter the upcoming busy season.
2010 TAX DATA SCHEDULE

 2010 2010
 Federal California

Standard Deductions

Single $5,700 $3,670

Married Filing Jointly, Surviving Spouse 11,400 7,340

Married Filing Separately 5,700 3,670

Head of Household 8,400 7,340

Additional for Age 65 and Older or Blind 1,100
Married

Additional for Age 6.5 and Older or' Blind 1,400
Unmarried (per individual for each situation,
age or blind)

Taxpayer Claimed as a Dependent 950 950

Personal or Dependent Exemption 3,650

(Social Security Number required)

California Exemption Credits

Single, Married Filing Separately, Head of $99
Household

Married Filing Jointly. Surviving Spouse 198

Dependent 99

Blind or Age 65 and Older 99

Senior Head of Household Credit

2% of California taxable income, maximum $1,196
California AG I of S63,440 with maximum
credit of

Joint Custody Head of Household Credit and
Dependent Parent Credit

Each is 30% of net tax with maximum credit $390
of

Child and Dependent Care Credit

Percentage of federal credit for California
AGI limits

 $0 40,000 50%

 40,001 70,000 43%

 70,001 100,000 34%

 100,001 or more 0%

California Renter's Credit

Married Filing Jointly, Head of Household, $120
Surviving Spouse if AGI is below S68,824

Single or Married Filing Separately if ACT is 60
below $34,412

IRC Section 179 Deduction $500,000 $25,000

Sec. 179 Purchase Phaseout $2,000,000 $200,000

Sec. 179 Deduction Allowed on Qualified Real $250,000 N/A
Property

Beginning of Personal Exemption Phaseout
Range--Based on Federal AGI

Single none $162,186

Married filing Jointly, Surviving Spouse none 324,376

Married Filing Separately none 162,186

Head of Household none 243,283

Beginning of Itemized Deduction Phaseout
Range--Based on Federal AGI

Single none $162,186

Married Filing Jointly, Surviving Spouse none 324.376

Married Filing Separate!) none 162,186

Head of Household none 243,283

Rate Reduced over federal AGI limits N/A 6%

Schedule A Medical Deduction

Based on federal AGI 7.5% 7.5%

Schedule A Miscellaneous Deduction

Based on federal AGI 2% 2%

Alternative Minimum Tax (AMT) Rate

AMTT Less Exemption up to S175,000 26%

AMTI Less Exemption over $175,000

($87,500 if Married Filing Separately) 28%

AMTI Less Exemption 7.25%

AMT Exemption Amounts

Married Filing Jointly, Surviving Spouse $45,000 $79,526

Single. Head of Household 33,750 59,646

Married Filing Separately 22,500 39,762

Estate or Trust 22,500 39,762

AMT Exemption Phaseout Amounts

Married Filing Jointly, Surviving Spouse $150,000 $298,224

Single, Head of Household 112,500 223,669

Married Filing Separately. Estate or Trust 75,000 149,111

Self-Employed Health Insurance Premiums

Adjustment for AGI, percentage of total 100% 100%
qualifying health insurance premiums


TaxTalk Listserve

* To join CalCPA's TaxTalk Listserve, e-mail taxtalk-subscribe@yahoogroups.com.
2010 TAX DATA SCHEDULE

 2010 Federal 2010 California

Auto Standard Mileage Allowances
Business .50 .50
Charity work general .14 .14
Medical or moving .165 .165

U.S. Savings Bond Interest Exclusion Phaseout
Based on Modified AGI
Joint Return, Surviving Spouse $105,100 135,100
All Other 70,100-85,100

California SDI
Federal tax deduction *
Annual wage limit $93,316
Rale 1.10%
Tax 1,026.48

* Amounts paid to a voluntary program in lieu of the stale programs are
not deductible, but may be a credit on California return.

2010 FEDERAL TAX RATE SCHEDULE

Taxable Income But Not Of The Amount
 Over Pay +% Over

Is Over Single
$0 $8,375 $0 10% $0
8,375 34,000 837.00 15% 8,375
34,000 82,400 4,681.25 25% 34,000
82,400 171,850 16,781.25 28% 82,400
171,850 373,650 41,827.25 33% 171,850
373,650 and more 108,421.25 35% 373,650

Head of Household
$0 $11,950 $0 10% $0
11,950 45,550 1,195.00 15% 11,950
45,550 117,650 6,235.00 25% 45,550
117,650 190,550 24,260.00 28% 117,650
190,550 373,650 44,672.00 33% 190,550
373,650 and more 105,095.00 35% 373,650

Married Filing Jointly or Qualifying widow(er)
$0 $16,750 $0 10% $0
16,750 68,000 1,675.00 15% 16,750
68,000 137,300 9,362.50 25% 68,000
137,300 209,250 26,687.50 28% 137,300
209,250 373,650 46,833.50 33% 209,250
373,650 and more 101,085.50 35% 373,650

Married Filing Separately
$0 $8,375 $0 10% $0
8,375 34,000 837.50 15% 8,375
34,000 68,650 4,681.25 25% 34,000
68,650 104,625 13,343.75 28% 68,650
104,625 186,825 23,416.75 33% 104,625
186,825 and more 50,542.75 35% 186,825

Estate or Nongrantor Trust
$0 $2,300 $0 15% $0
2,300 5,350 345.00 25% 2,300
5,350 8,200 1,107.50 28% 5,350
8,200 11,200 1,905.50 33% 8,200
11,200 and more 2,895.50 35% 11,200

2010 STATE TAX RATE SCHEDULE

Single, Married Filing Separately, Fiduciary Return
$0 $7,124 $0 1.25% $0
7,124 16,890 89.05 2.25% 7,125
16,890 26,657 308.79 4.25% 16,890
26,657 37,005 723.89 6.25% 26,657
37,005 46,766 1,370.64 8.25% 37,005
46,766 and more 2,175.92 9.55% 46,766
An additional 1% surcharge applies to taxable income in excess of
$1 million.

Married Filing Jointly or Qualifying Widow(er)
$0 $14,248 $0 1.25% $0
14,248 33,780 178.10 2.25% 14,248
33,780 53,314 617.57 4.25% 33,780
53,314 74,010 1,447.77 6.25% 53,314
74.010 93,532 2,741.27 8.25% 74,010
93.532 and more 4,351.84 9.55% 93,532
An additional 1% surcharge applies to taxable income in excess of
$1 million.

Head of Household
$0 $14,257 $0 1.25% $0
14.257 33,780 178.21 2.25% 14,257
33,780 43,545 617.48 4.25% 33,780
43.545 53,893 1,032.49 6.25% 43,545
53,893 63,657 1,679.24 8.25% 53,893
63,657 and more 2,484.77 9.55% 63,657
An additional 1% surcharge applies to taxable income in excess of
$1 million.

LUXURY AUTO LIMIT
Taxpayer leasing so-called "luxury" autos needs to add back an amount
to income to offset the full deduction of the lease payments.

 Year First Second Third Thereafter

2010
(Passenger Autos) 3,060 4,900 2,950 1,775

2010
Trucks & Vans) 3,160 5,100 3,050 1,875

SOCIAL SECURITY AND MEDICARE TAXES

 2009 2010

Social Security Tax
Maximum wage base $106,800 $106,800
Social Security rate--employee 6.2% 6.2%
Social Security rate self-employed 12.4% 12.4%

Medicare Tax
Maximum wage base Unlimited Unlimited
Medicare rate employee 1.45% 1.45%
Medicare rate self-employed 2.9% 2.9%

Earned Income Ceilings for Social Security Benefits
Under full retirement age $14,160 $14,160
Full retirement age Unlimited Unlimited
Monthly Medicare Part B Premium $96.40 $110.50


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RETIREMENT PLAN LIMITATIONS

 2009 2010

Maximum 401 (k) or 403(b) Deferral $16,500 $16,500

Maximum Defined Contribution Plan Contribution 49,000 49,000

Maximum Annual Benefit for Defined Benefit Plans 195,000 195,000

Annual Compensation Limit for Computing Plan 245,000 245,000
Benefits

Annual Compensation Limit for the Definition of 110,000 110,000
Highly Compensated Employee IRC Section 414(q)

Compensation Minimum for SEP plan 550 550

Maximum Contribution for SIMPLE plan 11,500 11,500

Catch-up Contribution for 401(k) or 403(b) for 5,500 5,500
taxpayers age 50 and older

Catch-up Contribution for SIMPLE for taxpayers 2,500 2,500
age 50 and older

Key Employee for Top Heavy Purposes:

* Officers Earning Over $160,000 $160,000

* A 5-percent Owner or a l-percent Owner Earning 150,000 150,000
 Over

TRADITIONAL AND ROTH IRAs

 2009 2010

Contribution Limit $5,000 $5,000

Catch-up Contribution age 1,000 1,000
50 and older

IRA Deduction Phaseout for Active Participants

 Single $55,000-65,000 $56,000-66,000

 Married Filing Jointly 89,000-109,000 89,000-109,000

 Married Filing Separately 0-10,000 0-10,000

IRA Deduction Phaseout for Spousal Contributions

 Married Filing Jointly 166,000-176,000 167,000-177,00

Roth IRA Contribution Phaseout

 Single $105,000-120,000 105,000-120,000

 Married Filing Jointly 166,000-176,000 167,000-177,000

 Married Filing Separately 0-10,000 0-10,000

Roth IRA Conversion Phaseout

 Single $100,000 no ACI Limit

 Married Filing Jointly 100,000 no AGI Limit

 Married Filing Separately Ineligible no AGI Limit

IRA & PENSION CREDIT

Tax Credit Rate applied to maximum contribution of $2,000 Based on AGI
for various pension/IRA plans

Joint Filers Heads of Household All Other Filers Credit Rate

 $0-33,500 $0-25,125 $0-16,750 50%
33,501-36,000 25,126-27,000 16,751-18,000 20%
36,001-55,500 27,001-41,625 18,001-27,750 10%
 Over 55,500 Over 41,625 Over 27,750 0%

ESTATE AND GIFT TAX

Phaseout and Repeal of Estate and Generation-Skipping Transfer Taxes

Calendar Year Estate/GST tax Highest estate and
 transfer exemption gift tax rate

 2010 Not applicable, taxes repealed 35%
 2011 1 million 39.6%

Gift tax:
Annual Gift Limitation of $13,000 for 2009.
Lifetime Exemption of $1 million after Dec. 31, 2001.

EDUCATION-RELATED TAX BENEFITS

Coverdell Educational Savings Accounts
Annual Contribution Limit $2,000

Contribution Phaseout based on modified AGI
Single $95,000-110.000
Married Filing Jointly 190,000-220.000

Student Loan Interest Deduction
Maximum interest deduction $2,500

Deduction phascout based on modified AGI
Single $60,000 75,000
Married Filing Jointly 120,000-150,000

IMPORTANT PHONE NUMBERS

Tax Practitioner Hotlines
IRS Priority Service: (866) 860-4259
FTB: (916) 845-7057
FTB Fax: (916) 845-9300
FTB E-file: (916) 845-0353
EDD: (888) 745-3886
BOE: (800) 401-3661

Application for Taxpayer ID Number
Federal Form SS-4: (800) 829-4933
Federal Form SS-4 Fax: (859) 669-5760
Federal Online: www.irs.gov
EDD Form DE 1: (916) 654-8706
EDD Form DE 1: (916) 654-9211


Fast Tax Facts is designed to provide general guidance to CalCPA members. CalCPA is not engaged in rendering accounting or other professional advice. Numbers in Fast Tax Facts are subject to change.
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Title Annotation:AS OF SEPT. 15. 2010
Publication:California CPA
Date:Nov 1, 2010
Words:1855
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