The IRS has announced the inflation adjustment amounts for 2009. The changes which will affect most returns are:
· Personal and dependent exemptions have increased from $3,500 to $3,650.
· Standard deductions for:
- married couples has been increased from $10,900 to $11,400;
- singles and married filing separately has been increased from $5,450 to $5,700; and
- heads of household has been increased from $8,000 to $8,350.
· Tax bracket thresholds have been increased for all filing statuses; and
· The annual gift exclusion has been increased from $12,000 to $13,000.
For complete details on the inflation amounts, please visit the Internal Revenue Service Website at //www.irs.gov/irb/2008-45_IRB/ar14.html.