Be prepared for tax changes in 2009

11.10.08
By Lewis Green

As the end of the tax year approaches, you may already be thinking about how to spend your upcoming refund - or where to find the extra funds to pay what you will owe.

And, believe it or not, some financial experts are already looking ahead to the following year. An article in the Wall Street Journal describes some of the changes that will take place beginning in 2009.

For one thing, if you are a married couple filing jointly, your basic standard deduction will increase to $11,400 - a $500 rise from 2008.

Meanwhile, single people and married people filing separately will see their basic standard deduction go up by $250 to $5,700. For heads of households, this number will rise $350 to $8,350.

All of these changes are due to annual inflation adjustments, which happen every year. The Internal Revenue Service told the publication that changes will also be made to tax-bracket income thresholds for each filing status.

In other words, the level of income you will need to be bumped into a higher tax bracket has risen as well.

If you owe back taxes and are not sure how to begin repayment, you may want to contact an expert who can advise you about debt management.

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