Tax Items for 2010: Minimal Increases

Every year, the IRS releases cost-of-living adjustments to more than three-dozen items according to guidelines in the law. Due to very low inflation during the measuring period ending August 31, 2009, most items will not be increased in 2010. The IRS announced that the following items are staying the same:

• The exemption amount remains at $3,650.
• Standard deduction for married persons filing jointly ($11,400), singles ($5,700), and married persons filing separately ($5,700). The standard deduction for heads of households is $100 more than in 2009 ($8,400).
• Additional standard deduction for age and/or blindness remains at $1,100 for married persons filing jointly and $1,400 for singles.
• Standard deduction for dependents remains at $950 or the sum of the person’s earned income plus $300.
• Transportation fringe benefits (free parking, transit passes, and van pooling) remains at $230 per month.
• Annual gift tax exclusion remains at $13,000 per recipient.

The tax bracket rates are the same as in 2009; the brackets themselves have been adjusted only slightly. The credit for adoption expenses is up by $20 to $12,170 in 2010.