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iTax Tidbits |
Tax
Tidbits: The tax laws are massive and complicated; but
we'll keep this tiny corner updated with bits of useful or interesting information.
- The Wage base for Social Security tax for the
years 2009 & 2010 is $106,800.00 and the maximum Social Security
tax is $6,621.60. (This does NOT include Medicare tax. There
is no limit on wages for the Medicare tax.)
- The pay-in limit for 401(k) retirement plans
is $16,500 for the years 2009 and 2010, with an extra $5,500 for those
age 50 by the end of this year. For SIMPLE's: $11,500 (and an extra
$2,500 for age 50 and over).
- For 2009 and 2010, the earnings limit for Social
Security beneficiaries between ages 62 and 66 is $14,160. For each $2
above that, $1 of benefits is lost.
- The mileage rate for business use of a car is $0.55 per mile in 2009 and $0.50 per mile in 2010.
Compare your tax rate with the rates in 1913. If you're interested in seeing the first income tax form (Year 1913), click here. Check out the top tax bracket rate. (6% on income over $500,000.00)