Requirement Thresholds

You are required to file a tax return if your income exceeds the combined total of your standard deduction and personal exemption. Here are the 2009 filing requirement thresholds:

Single: $9,350 ($10,750 if age 65 and over)

Head of Household: $12,000 ($13,400 if age 65 and over)

Married Filing Joint: $18,700 ($19,800 if one spouse age 65 and over; $20,900 if both spouses age 65 and over)

Married Filing Separately: $3,650 (any age)

Qualifying Widow/Widower: $18,700 ($19,800 if age 65 and older)

Tax Forms

The 1040, a.k.a the  “long form,” can be used by any full-time resident individual U.S. income taxpayer.

The 1040A, a.k.a. the “short form,” should be used by those with uncomplicated tax situations, for example, no itemized deductions, no capital gain or loss, etc. Use of Form 1040A is limited to taxpayers with taxable income below $100,000 who take the standard deduction instead of itemizing deductions.

The 1040EZ, a.k.a. the “easy form”, can be used by both single and joint filers with no dependents. The 1040EZ is a simplified, six-section Federal income tax return, issued by the United States’ Internal Revenue Service. Its use is limited to taxpayers with taxable income below $100,000 (as of tax year 2006) who take the standard deduction instead of itemizing deductions.

Filing Status

Head of Household: To claim this status, you must be unmarried, you must be able to claim a dependent, and you must have cared for that dependent for over half the tax year.

Married Filing Jointly: To claim this status, you must be married. This status can potentially provide more tax benefits than filing separate returns.

Married Filing Separately: To claim this status, you must be married. This status can potentially provide fewer tax benefits than filing joint returns. Married taxpayers will need to weigh the pros and cons before deciding which is the best filing status. Filing a separate return provides relief from joint liability for taxes. However, married taxpayers who file separately are not eligible for many tax deductions and credits, and have higher tax rates. In general, it is more advantageous to file a joint return.

Qualifying Widow(er) w/ Dependent Child:

Surviving spouses receive the same standard deduction and tax rates as taxpayers who are married filing jointly. In the year of your spouse’s death, you can file a joint return. For the two following years, you can use the Qualifying Widow/Widower filing status if you have a dependent.

Standard Deduction Amounts for 2009

Everyone is entitled to reduce their taxable income by tax deductions. Generally speaking, you can choose between your standard deduction or your itemized deductions. Just be sure to choose whichever figure is more advantageous. Together with your personal exemption amount, the standard deduction reduces your adjusted gross income to arrive at your taxable income. It is on this taxable income amount that your tax will be calculated.

How much of a standard deduction you qualify for depends on your filing status, age, and whether you are blind.

• Single: $5,700

• Head of Household: $8,350

• Mar. Flg. Joint: $11,400

• Mar. Flg. Septly.: $5,700

• Qualf. Widow(er) $11,400

• Dependent: $950-$5,700

People born before January 2, 1945, and people who are legally blind receive an additional standard deduction. The standard deduction is calculated by adding the person’s standard deduction (based on their filing status), plus the additional amount. The additional amounts are:

•$1,400 for single or head of household

•$1,110 for married filing jointly, married filing separately, or qualifying widow.

Social Security Numbers

Use the social security numbers for yourself, your spouse, your dependents and qualifying children exactly as they appear on each respective social security card when filing your returns.

Make sure that your social security number is included on all tax schedules and tax statements attached to your return.

Important tidbits:

Double and triple check your math, both addition and subtraction, on all parts of your tax return.

Do not forget to sign and date the tax return. If it is a joint tax return, your spouse must also sign and date it.

Make a copy of the signed tax return and all tax schedules to be kept in your personal tax records.

Use the peel-off label sent to you by the IRS. Make sure to enter corrections as needed.

If you do not have a label or have too many corrections, clearly print your name, social security number, and address on your tax return.

A check or money order enclosed with a tax return for taxes owed the IRS must include your social security number, tax form type, and tax year on the check.

Certain Cash Contributions for Haiti Relief Can Be Deducted on Your 2009 Tax Return

A new law allows you to choose to deduct certain charitable contributions of money on your 2009 tax return instead of your 2010 return.  The contributions must have been made after January 11, 2010, and before March 1, 2010, for the relief of victims in areas affected by the January 12, 2010, earthquake in Haiti.

Contributions of money include contributions made by cash, check, money order, credit card, charge card, debit card, or via cell phone. 

The new law was enacted after the 2009 forms, instructions, and publications had already been printed. When preparing your 2009 tax return, you may complete the forms as if these contributions were made on December 31, 2009, instead of in 2010.  To deduct your charitable contributions, you must itemize deductions on Schedule A (Form 1040) or Schedule A (Form 1040NR).  

The contribution must be made to a qualified organization and meet all other requirements for charitable contribution deductions.

However, if you made the contribution by phone or text message, a telephone bill showing the name of the donee organization, the date of the contribution, and the amount of the contribution will satisfy the recordkeeping requirement.

Therefore, for example, if you made a $10 charitable contribution by text message that was charged to your telephone or wireless account, a bill from your telecommunications company containing this information satisfies the recordkeeping requirement.