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WASHINGTON – More forms to file. New and expanded credits and deductions.
When taxpayers sit down to file their 2009 returns, they will find plenty new — some the result of adjusting for inflation, and others changes passed by Congress last year to try to bring the country out of recession.
"Depending on their individual situation, there could be good news and there could be bad news," said Amy McAnarney, executive director of the Tax Institute at H&R Block.
Some things affect all taxpayers. The personal exemption, for example, has increased, to $3,650 each for the taxpayer and dependents, up $150 from 2008.
And tax brackets have been adjusted upward by about 5 percent since 2008, said Greg Rosica, tax partner at Ernst & Young and a contributing author to the "Ernst & Young Tax Guide 2010." That means you might not jump to a higher tax bracket if you earned more.
"Certainly there are benefits there for all taxpayers," said Rosica. "There are ones that span the entire income spectrum out there."
Others revisions are more likely to affect low- and moderate-income workers. Income limits for the earned income tax credit have been raised and there's a new category — families with three or more children. The Internal Revenue Service says one in six taxpayers claim the credit.
Still other changes affect those at higher income levels. The exemption for the alternative minimum tax has been increased once again, this time to $70,950 for joint returns and $46,700 for individuals. If your income is higher than these amounts, you could be subject to the AMT tax.
These changes are among those that happen every year, to keep taxes in line with inflation. But there are a host of other revisions, new for
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