Guide to 2009 Tax Brackets

Depending on what tax bracket you fall under, you could lower your federal income tax bill and save money. You must take further action by December 31, 2008 or you'll lose that saving opportunity. There are many resources on the web with information on tax brackets for filing in 2009. Here is a guide to the 2009 tax brackets and tips on how to save you money so you'll be prepared when talking to your tax adviser.

The Official IRS Website

www.irs.gov

A very good place to start looking for more information is on the Internal Revenue Service, better known as the IRS, official website. They have many tips for tax planning and very nifty calculators to help you figure out what tax bracket you fall under.

According to a statement released from the IRS, tax brackets have widened due to inflation adjustments. The tax bracket for taxable income that separates the 15% bracket and the 25% bracket is now $65,100 versus the $63,700 in 2007. The value of dependency exemption increased $100 for this year.

There is good news for college graduates. The Hope credit for those who are repaying their student loans has increased from $1,650 to $1,800 for this year. The amount you're allowed to contribute into your Roth IRAs is up $4,00 for joint filers and up $2,000 for singles.

Suze Orman

www.suzeorman.com

Suze Orman is a wonderful financial advisor. Her website will help simplify some confusing terms and there is a plethora of financial information. If you visit the Resource Center and search for Taxes and Charitable Giving section then you'll find more information for filing.

Smart Money Taxes

www.smartmoney.com/personal-finance/taxes

Smart Money Taxes was one of Suze Orman's recommendations and they have tips on cutting tax bills for small businesses and year-end tax saving strategies.

Money Chimp

www.moneychimp.com/features/tax_brackets.htm

Money Chimp has a very easy to use calculator to help calculate federal tax brackets. If you want to decrease your earnings to fall into a lower tax bracket then read on for information on tax breaks.

Tips on Tax Breaks

Withholdings

The first place to look for money that could make you fall into another tax bracket is your withholdings. If your employer is withholding too much money, then chances are that you will fall under a lower tax bracket. If your employer isn't withholding enough then you might end up owing money. Visit the IRS website to make sure you aren't having too much money taken out of your paycheck each month.

Hybrid Cars & Cars Used for Business

A car used only for business will allow you to claim a bonus deduction of up to $11,160 on your 2008 tax return. There are also tax breaks for hybrid vehicles. According to the IRS, the credit amount varies from $6,000 to $12,000 depending on the model of the qualified hybrid.