| Charles E. Schneider CPA, Ltd. | |||||||||
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Quick Tax Facts |
This page contains tax amounts and
percentages commonly used by business owners and self-employed individuals. If you would like to know more about an item, click on the "More Info" button to the right. |
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For Business |
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| IRS Standard Business Mileage Rates: | |||||||||
| 2009 | $0.55/mile | ||||||||
| Home Page | 2008 | $0.585/mile (July 1, 2008 to Dec. 31, 2008) | |||||||
| 2008 | $0.505/mile (Jan. 1, 2008 to June 30, 2008) | ||||||||
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| First Year Equipment Write-Off (Section 179): | |||||||||
| 2009 | $133,000 | ||||||||
| 2008 | $250,000 | ||||||||
| Special Health Insurance Deduction for the Self-Employed and | |||||||||
| Business Owners: | |||||||||
| 2009 | 100% | ||||||||
| 2008 | 100% | ||||||||
| Maximum Pay-Ins to Retirement Plans: | |||||||||
| Year | 401(k) Plans | SIMPLE Plans |
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| 2009 | $16,500 | $11,500 | |||||||
| 2008 | $15,500 | $10,500 | |||||||
| 2007 | $15,500 | $10,500 | |||||||
| 2006 | $15,000 | $10,000 | |||||||
| 2005 | $14,000 | $10,000 | |||||||
| 2004 | $13,000 | $9,000 | |||||||
| 2003 | $12,000 | $8,000 | |||||||
| 2002 | $11,000 | $7,000 | |||||||
| 2001 | $10,500 | $6,500 | |||||||
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| Higher limits for employees age 50 & over. See schedule | |||||||||
| in Tax Facts For Individuals | |||||||||
| Maximum Wages (& Self-Employment Income) Subject To FICA Tax: | |||||||||
| 2009 | $106,800 | ||||||||
| 2008 | $102,000 | ||||||||
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Corporation Income Tax Rates: |
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| Taxable Income Range | Tax Rate | ||||||||
| $0 - $50,000 | 15% | ||||||||
| $50,001 - $75,000 | 25% | ||||||||
| $75,001 - $100,000 | 34% | ||||||||
| $100,001 - $335,000 | 39% | ||||||||
| $335,001 - $10,000,000 | 34% | ||||||||
| $10,000,001 - $15,000,000 | 35% | ||||||||
| $15,000,001 - $18,333,333 | 38% | ||||||||
| Over $18,333,333 | 35% | ||||||||
| * Qualified personal service corporations are taxed at a flat rate of 35% at all income levels. | |||||||||
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Maximum Compensation for Retirement Plans: |
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| Fiscal years beginning in 2009 | $245,000 | ||||||||
| Fiscal years beginning in 2008 | $230,000 | ||||||||
| Fiscal years beginning in 2007 | $225,000 | ||||||||
| Fiscal years beginning in 2006 | $220,000 | ||||||||
| Fiscal years beginning in 2005 | $210,000 | ||||||||
| Fiscal years beginning in 2004 | $205,000 | ||||||||
| Qualified Transportation Benefits: | |||||||||
| Transportation/Transit Passes (2009) $120 (2008) $115 | |||||||||
| Qualified Parking (2009) $230 (2008) $220 | |||||||||
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Quick Tax Facts |
IRS
Standard Business Mileage Rate:
The IRS Standard Business Mileage Rate is the maximum rate to be used to reimburse employees or business owners for business use of personally owned automobiles. The standard mileage rate is a simpler alternative to using actual costs. [Back] |
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| Quick Tax Facts | First
Year Equipment Write-Off (Section 179)
Business equipment expected to last more than one year normally has to be depreciated over several years as mandated by IRS regulations. Section 179 allows you to write-off the cost of qualified equipment entirely in the year of purchase up to the specified limit. Generally does not apply to vehicles or rental real estate. [Back]
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Quick Tax Facts |
Special Health Insurance Deduction for Self-Employed & Business Owners: | ||||||||
| There is a special health insurance deduction
which shows up on the individual tax return of sole proprietors, more than 2% owners of S corporations, partners in
partnerships and members of limited liability companies (LLC's). This
deduction partially compensates business owners for the fact that their health
insurance premiums are not a tax free benefit like the premiums paid for employees.
This deduction is not an itemized deduction - it is substantially less restrictive
than the medical deductions on Schedule A (individual itemized deductions). |
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| [Back] | |||||||||
| Quick Tax Facts | Maximum Pay-Ins to Retirement Plans: | ||||||||
| These are the maximum amounts that employees participating in employer-sponsored retirement plans can choose to add to their retirement savings by reducing their cash salaries. Employees age 50 and over can add even larger amounts to 401(k) and SIMPLE IRA plans. | |||||||||
| [Back] | |||||||||
| Quick Tax Facts | Maximum Wages (& Self-Employment Income) Subject To FICA Tax: | ||||||||
| These are the maximum wages and self-employment income amounts which are subject to the full FICA/Medicare tax. After these amounts are exceeded during a calendar year, additional income is only subject to Medicare tax. (1.45% for employees & 2.9% for self-employed individuals) [Back] | |||||||||
| Quick Tax Facts | Corporation Income Tax Rate Schedule (Federal): | ||||||||
This is the rate schedule for "C" corporations only. Income tax on S corporation earnings are paid at the individual tax rates of the shareholders. Qualified personal service corporations include most incorporated professionals and consultants. [Back] |
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Quick Tax Facts |
Maximum Compensation For Retirement Plans: | ||||||||
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Many employer-sponsored retirement plans contribute a
percentage of each eligible employee's gross compensation into the plan. The
Internal Revenue Code sets an upper dollar limit on the amount of gross compensation
that can be taken into account when calculating an employee's retirement plan contribution. (This rule applies to employer-paid plan contributions.) As
an example, ABC company has a profit-sharing plan and has decided to contribute 15% of compensation to the plan for calendar year
2001.
Employee |
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