It’s the time of year that people and businesses are focusing on filing their 2009 tax returns.  However, it’s never too late to get organized and plan for the future!  Studies show that individuals who plan for the future and remain organized save more money, not only as a function of their personal savings efforts,  but also in the form of reduced expenses related to income tax preparation and other financial planning services. 

By law, each year, the dollar amounts for a variety of tax provisions must be revised to match inflation.  As we all know that inflation was minimal in 2009 as compared to prior years, there are no significant changes in the specific provisions for 2010 as compared to 2009.  Following are some of the key items affecting 2010 tax returns (and which are due to be filed by April 15, 2011 for most people):

• The personal and dependency exemption will remain the same as 2009 levels, at $3,650 per individual or dependent.
• The standard deduction for married couples filing jointly, married individuals filing separately and singles remain the same as 2009 levels.  Specifically, the standard deduction for each is listed below:
  Married couples filing jointly – $11,400
  Married individual filing separately – $5,700
  Singles – $5,700
• The federal tax rate thresholds for 2010 are increased slightly from 2009 levels.  That means that individuals will need to earn slightly more money before their tax rate increases from 15% to 25%.
• The maximum earned income credit for working families with 2 or more children for 2010 is $5,028, up from $4,824 for 2009.  Further, the upper income limit to qualify for the credit for joint filers with 2 or more children is $43,415 for 2010, up from $41,646 for 2009.
• The annual gift exclusion will remain consistent with 2009 at $13,000 per individual.

The above information is a summary of some of the key items that will affect taxpayers in 2010, and are subject to changes by the IRS.  As such, it is important to consult with a qualified tax professional when dealing with tax issues as the rules are complex and include numerous qualifiers and phase outs.