California legislation requires that individual tax returns prepared professionally be filed electronically. For more information, please see the Franchise Tax Board web site FAQ regarding this requirement. (The Franchise Tax Board link opens in a new window.)
Alternative minimum tax will continue to affect many more individual taxpayers this year. This means the prepayment of state tax or real estate tax by December 31 may not result in tax savings.
The social security wage base for 2009 and 2010 is $106,800.
The federal gift tax exclusion for 2009 is $13,000.
IRS
standard mileage rates are as follows:
2009
2010
Business
55.0¢
50.0¢
Medical/Moving
24.0¢
16.5¢
Charitable
14.0¢
14.0¢
2009 and 2010 maximum contributions and limits to 401(k), pension plans,
and individual retirement accounts (IRAs) are as follows:
Description
Amount
2009
2010
401(k)
Maximum employee 401(k) contribution
limit
$16,500
$16,500
Catch up contribution limit (over age
50)
$5,500
$5,500
Compensation
Limits
Maximum annual compensation limits for determining
benefits or contributions under a qualified plan
$245,000
$245,000
SEP
(Simplified Employee Pension)
Maximum annual defined contribution and
maximum contribution to a SEP
$49,000
$49,000
SEP minimum compensation
$550
$550
IRA
(Individual Retirement Account)
Traditional IRA, non-deductible, or Roth
IRA contribution limits
California legislation requires that individual tax returns prepared professionally be filed electronically. For more information, please see the