What is the 2010 tax exemption limit?

What is the 2010 tax exemption limit?

  • Does anyone know the tax exemption limit for a single resident in the US. I remember in high school that my law teacher said it was around $4,600 but I can’t seem to find any information now. The only thing coming up is exemption on lowering your taxes. I’m referring to the maximum amount you can earn, without paying taxes, and still check the exemption box on your 1040. I’m assuming it’s around $5500 but just wanted to check so I don’t screw myself next tax return. I haven’t worked all year and have now just found a job…

  • Answer:

    for 2009 the personal exemption was $3650 and the standard deduction $5700 and I believe this will remain for 2010 thus, $9350 was essentially non taxable, any excess would be no less than 10%(the lowest tax rate)

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If they do raise the 2010 exemption and SD it won't be much, maybe $150. So, you can make up to approximately $9500 before being taxed.

The reason you're having trouble finding it online is because there is no set amount. The rules are that you had no tax liability last year and expect to have no tax liability this year. The amount of money you can earn and have no tax liability can vary from about $5000 to $50,000 depending on your situation. For example, a child who is still claimed as a dependent by his parents, may owe some taxes if he makes $6000 at his part time job, but a married person with 3 children might not owe any taxes on a $50,000 salary after applying the child tax credits and deductions. If you're single with no dependents and no deductions, then you'll be able to take the standard deduction and a personal exemption for yourself (if nobody else can claim you as their dependent). For 2010, the standard deduction is $5700 (single), and the personal exemption is $3650, so you can make $9350 without having a tax liability. So, multiply your hourly pay by the number of hours you expect to work per week to determine your weekly gross pay. Then multiply that amount by 30 (the number of weeks remaining in 2010). If the result is more than about $9000, you should not put exempt on your W-4, and instead you should follow the instructions on the worksheet to determine how many allowances to claim.

You will have to wait until the 2010 tax season starts to know for sure. There were not many changes planned for 2010 from 2009,however,with the national debt now around $14 Trillion dollars and voters calling on the government to do something about it,it is most likely there will be some changes. Cash strapped states are already implementing new taxes on things that were never taxed before and raising taxes on already taxed items. About the only thing they haven't taxed yet is the taxes you pay,but give them time-they'll probably do it too!. Unless the law was changed,the first $10,000.00 of income is federal income tax free,but you still have to pay social security and medicare taxes on the full amount.

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