FAQs 2010 Tax Changes
By: Charles L. Telk Jr., CPA, Senior Tax Adviser | email
The following items reflect answers to frequently asked questions, and highlights some important tax information.
- Business auto mileage rate – drops to 50 cents a mile for 2010.
- Charitable mileage rate – remains at 14 cents a mile for 2010.
- Medical and Moving mileage rate – decreases to 16.5 cents a mile for 2010.
- 401K Deferral (contribution) limits – remains at $16,500 for 2010
- 401K “catch-up” deferral (contribution) limits – remains at $5,500 for 2010
- IRA and Roth IRA contribution limits – remains at $5,000 for 2010
- IRA and Roth IRA “catch-up” contribution limits – remains at $1,000 for 2010
- Annual Gift Exclusion – Remains at $13,000 for 2010
- Social Security Tax Wage Base – remains at $106,800 for 2010
- Roth IRA conversions. For 2010 the income limit is waived making anyone eligible to convert their traditional IRA to a Roth IRA. If you convert your traditional IRA to a Roth Ira in 2010 you can elect to spread the tax to 2011 and 2012 – one half of the tax to each year.
- Estate Tax. As of right now – the Estate tax is repealed effective January 1, 2010. It is widely expected that Congress will act retroactive to January 1, 2010 to re-instate the Estate Tax.
The following tables represent the individual income tax rates for 2010.
