Watch for these important tax changes in 2009

A new economic stimulus package was bouncing around Congressat press time. Veterinary Economics Editorial Advisory Boardmember Gary Glassman, CPA, a partner with Burzenski and Co. inEast Haven, Conn., says you may see lots of tax law changes in the comingmonth or two. Thankfully, most should be to your benefit. Here are key taxlimits and where they stand now in 2009. The amounts may increase beforetax time, so keep an accountant on speed-dial.

Social Security

Maximum annual wages subject to taxes: $106,800.Maximum tax paid: $6,621.60

Section 179 equipment deduction

Annual maximum: $133,000

Mileage deductions

For business purposes: 55 cents per mileFor medical purposes: 24 cents per mileFor charity purposes: 14 cents per mile

Student loan interest deduction

Annual maximum: $2,500 (if income is below$60,000 single or $120,000 married filing jointly)

Retirement

IRA: Maximum annual contribution: $5,000 forthose under age 50, $6,000 for those 50 and older.SIMPLE: Maximum annual contribution: $11,500for those under 50, $14,000 for those 50 and older.401(k): Maximum annual contribution: $16,500 forthose under 50, $22,000 for those 50 and older.

Estate tax

Minimum value of estates that can be taxed: $3.5 million

Tax resources for veterinarians

For more coverage of tax law and tax breaks, search “taxes in 2009.”