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Tax Changes for 2009
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Making work pay credit If you have earned income from work, you may be able to take this credit of 6.2% of earned income. Not more than $400 and $800 if married filing jointly.
Unemployment compensation The first $2,400 per person for the year of unemployment compensation is not taxed.
American opportunity education credit The Home education credit is increased to $2,500.
Deduction for motor vehicle taxes You many be able to deduct state or local sales or excise taxes on the purchase of a new motor vehicle if bought after February 16, 2009.
Earned Income Credit (EIC) EIC has increase for people with three or more children instead of two children.
Tax on child's investment income Taxable investment income a child can have without it being subject to tax at the parent's rate has increased to $1,900.
Standard mileage rates For 2009, the standard mileage rate is 55 cents per mile, medical and moving expense is 24 cents.
Standard deductionThis amount has increased.
Exemption amountThis amount has increased to $3,650 per person.
See IRS Publication 17 page 3 & 4 for more details.
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