The IRS has announced that tax brackets and benefits will only change a little bit, if any, for 2010.
The law says that tax provisions must change every year to account for inflation. For taxpayers this is a good thing. With this in mind, there are roughly 35 tax benefits that must be adjusted every year. In a normal year this may mean a lot, but since recent inflation has been kept to a minimum there are not many changes in store for next year.
Some of the most important details include:
1. The personal and dependency exemption remains unchanged at $3,650.
2. Standard deduction for heads of household increases from $8,350 to $8,400 in 2010. For others, such as single and married filing jointly, the standard deduction remains the same at $5,700 and $11,400 respectively.
With inflation low the IRS did not have to make many changes to tax rate brackets and benefits for 2010.
Source: www.banks.com.
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