The following is a non-exhaustive list of frequently requested financial, education, and estate tax planning numbers for the 2010 tax year.  This list is designed as a desk reference for use at home or at the office.  We encourage you to use this guide in collaboration with your accountant or tax professional.  Siena Capital Management will update this tax guide every January in The Greater Lansing Business Monthly.

INCOME TAX & CAPITAL GAINS RATES, WITH DEDUCTIONS

Filing status                Rate (%)        2010 Taxable Income ($) Brackets

Single                             10                    $1 - $8,375

                                      15                    8,376 – 34,000

                                      25                    34,001 – 82,400

                                      28                    82,401 – 171,850

                                      33                    171,851 – 373,650

                                      35                    Over 373,651

Married joint                10                    $1 - $16,750

                                     15                     16,751 – 68,000

                                     25                     68,001 – 137,300

                                     28                     137,301 – 209,250

                                     33                     209,251 – 373,650

                                     35                     Over 373,650

Long-term capital gains rate 15% / 0

                                                  (up to $3,000 of capital losses can offset wages)

Standard deductions                          FICA & Self-Employment

Single                           $5,700              Taxable wages for

Joint return                   11,400             Social Security/Medicare          $106,800 / All

Personal exemption $3,650             Itemized deduction phase-out

                                                            Single / Joint / HOH      $166,800

Itemized medical expense deductions Subject to 7.5% floor for unreimbursed                                                                                     medical expenses.

Mileage rates (2010)

• 50 cents per mile for business miles drive
• 16.5 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

RETIREMENT RATES

Social Security earnings limit

Not full retirement age      $14,160

Full retirement age            unlimited

IRA traditional & Roth contribution SIMPLE deferral limit

Standard                                  $5,000             Standard                      $11,500

50 & over catch up                   1,000             50 & over catch up           2,500

401(k) deferral limit                           HSA contribution limit

Standard                                  $16,500           Self only / Family                      $3,050 / 6,150

50 & over catch up                     5,500           55 & older catch up                       1000

Estimated Roth IRA phase-out

Single / head of household         $105,000 – 120,000

Joint                                           167,000 – 177,000

Conversion limits have been removed

Maximum annual payout at age 62 from a defined benefit plan $195,000

Maximum annual contribution to a defined contribution account $49,000

Maximum elective 403(b) deferrals $16,500

457 deferral limit $16,500

Maximum annual compensation that can be used to determine benefits or contributions under a qualified plan                                                                                             $245,000

Test to identify highly compensated employees                                   $110,000

EDUCATION SAVINGS TAX RATES

Student loan interest $2,500 (subject to phaseout)

Education tax credits

Hope scholarship credit            $1,800 (per student)

Lifetime learning credit              $2,000 (per taxpayer return)

American opp. tax credit           $2,500 (per student)

Coverdell ESAs                       $2,000 (subject to phaseout and not tax deductible)

PERSONAL RESIDENCE

First-time homebuyers tax credit[1] $8,000 (subject to phase-out)

Maximum exclusion for sale of a residence (occupied 2 out of 5 years)

Single                                    $250,000

Married filing jointly                  $500,000

Home mortgage interest deduction                    $1,000,000 (maximum amount of note)

Home equity interest deduction             $100,000 (maximum amount of note)

GIFT & ESTATE TAX

Annual gift tax exclusion $13,000 ($26,000 for joint gift)

Estate tax applicable exclusion amount No Limit

Maximum estate tax rate 45% 

		Stephen L. Hicks, JD, MS, CPA and Roger L. Millbrook, JD, CPA/PFS, are fee-only fiduciary investment advisers and principals representing high-net worth investors at Siena Capital Management, LLC, and with its affiliate, Siena Retirement Services, dedicated to serving the retirement and pension needs of individuals, small to mid-sized businesses and professional practices. Both advisers are accountants and hold law degrees as well as other advanced degrees and designations in the area of financial services.