How do you spell Kositzka?
K-O-S-I-T-Z-K-A
Where is Kositzka, Wicks, and Company located?
From I-395 S, Henry G Shirley Memorial Hwy: Exit onto the ramp at sign reading "Exit 2B West Edsall Rd". Turn right at the first traffic light and turn right again immediately onto Cherokee Ave. The second building on the left is 5500 Cherokee Avenue. We are in Suite 400. Click here to see a map of the surrounding area.
What is the current year Social Security wage base and Medicare Taxes?
For 2009, the maximum amount of wages subject to Social Security tax was $106,800. On all wages paid up to that amount from a single employer, 6.2% Social Security tax is withheld. Above that amount, only the health insurance portion is withheld at a rate of 1.45%. For the year 2010, the wage base remains at $106,800 and the rates remain the same as well.
What is the IRS mileage allowance?
For 2009, the business standard mileage rate was 55¢. It goes down to 50¢ for 2010. Also for 2009 and 2010, mileage related to charitable activity may be deducted at the same 14¢ per mile. The mileage related to moving and medical treatment is deductible at 24¢ per mile for 2009 and reduced to 16.5¢ for 2010.
What is the amount of personal and dependent exemption?
For 2009, the exemption is valued at $3,650. For 2010, the exemption remains at $3,650.
How about the standard deduction?
The standard deduction depends on your filing status, age and whether or not you are legally blind.
In general, the standard deductions are as follows:
| 2009 | 2010 | |
| Single taxpayer | $5,700 | $5,700 |
| Married filing joint (and surviving spouse) | $11,400 | $11,400 |
| Married filing separate | $5,700 | $5,700 |
| Head of household | $8,350 | $8,350 |
For taxable year 2009, the standard deduction amount for an individual who may be claimed as a dependent by another tax payer may not exceed the greater of (i) $950, or (ii) the sum of $300 and the individual’s earned income. In addition, the standard deduction amount for the aged and blind is $1,100 and $1,400 if the individual is married and unmarried, respectively.
Didn’t I pay that bill?
When in doubt, send a check.
Am I subject to the Alternative Minimum Tax (AMT)?
Every individual is subject to the AMT. Each of us has, in addition to our regular taxable income, our Alternative Minimum Taxable Income. If the Alternative Minimum Tax is higher than our regular tax we are subject to that higher number. Fortunately the AMT doesn't catch most of us. However in 1997 the AMT caught almost 600,000 taxpayers. That was an increase of more than 400,000 since 1990. There were about 1,000,000 taxpayers snared in the AMT in 2000, double that for 2001, 3,500,000 for 2003 and more in the future. Not knowing about the AMT can hurt you.
How much can I defer into my 401(k) Plan?
The dollar amount for 2010 is $16,500, the same as in 2009, with a $5,500 maximum catch-up contribution if you are 50 or older for 2010, the same as in 2009. While the total deferral could not exceed 15% of your compensation for 2001, that limit was deleted for 2002 and thereafter. These rules are complex and somewhat tricky. Check with your personal advisor before taking any action.
How large a gift can I give to my children or grandchildren without having to report to the IRS?
For 2009 the amount was $13,000. For 2010 we can only assume it will remain at $13,000. Congress has promised to make retroactive changes to the estate and gift tax law for 2010 and beyond. At this time, all remains up in the air. This means each of us can probably give up to $13,000 each, to as many individuals as we wish without having to report anything. If we go over the $13,000 to any one individual we have to notify the IRS by filing a Gift Tax Return on IRS Form 709. Even then we don’t have to pay any taxes. But our lifetime gift and estate exclusion is reduced by the amount that our gifts exceed $13,000 per individual donee. (The exclusions are $3,500,000 for estates and $1,000,000 for gifts in 2009. We do not know what the exemption might be for 2010. At present the estate tax is repealed. BUT, caution is strongly advised. This is likely to be changed.) This section will be updated once Congress takes action in these areas or indicates that no action is forthcoming.
How large a gift can I give to my spouse without having to report to the IRS?
There is no exclusion for gifts to a spouse who is a citizen of the United States. The first $134,000 of gifts in 2010 to a spouse who is not a citizen of the United States is not included in the total amount of taxable gifts. The amount in 2009 was $133,000. Other rules apply here so make sure to check with your tax advisor.
Qualified Transportation Fringe.
The 2010 monthly limitation regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass is $230 and $120 for qualified parking.
Income from United States Savings Bonds for Taxpayers Who Pay Qualified Higher Education Expenses.
For 2010 the exclusion begins to phase out for modified adjusted gross income above $104,900 for joint returns and $69,950 for other returns. This exclusion completely phases out for modified adjusted gross income of $134,900 or more for joint returns and $84,950 or more for other returns.
Election to Expense Certain Depreciable Assets.
For 2010, the aggregate cost may not exceed $134,000 for any Section 179 property a taxpayer may elect to treat as an expense. This limitation is reduced (but not below zero) by the amount by which the cost of Section 179 property placed in service during the taxable year exceeds $530,000.
Medical Savings Accounts (MSA)
Qualified MSAs defined: For self-only coverage, for 2010 a health plan that has an annual deductible that is not less than $2,000 and not more than $3,000 and under which the annual out-of-pocket expenses required to be paid for covered benefits does not exceed $4,050. For family coverage, a health plan that has an annual deductible that is not less than $4,050 and not more than $6,050 and under which the annual out-of-pocket expenses required to be paid for covered benefits does not exceed $7,400.
How much money can I earn without cutting into my Social Security Benefits?
If you are under full retirement age when you start getting your Social Security payments, $1 in benefits will be deducted for each $2 you earn above the annual limit. For 2010, that limit is $14,160.
Also important to remember: When you continue to work while you are collecting benefits, the SSA reviews your record every year to see if those additional earnings will increase your monthly payment. If there is an increase, the SSA will send you a notice of your new benefit amount. Check the Social Security website for a lot more details. (See our links page.)