Get your pencils sharpened: IRS just released the inflation-adjusted items for 2009 that you’ll need to know.

Revenue Procedure 2008-66 lays out all the adusted rates and credits for 2009 in detail. Below is a quick reference list for some of the most commonly used, as well as those you’re most likely to have employees ask you about:

• Hope Scholarship Credit — The Hope Scholarship Credit is equal to “100% of qualified tuition and related expenses not in excess of $1,200, plus 50% of those expenses in excess of $1,200 — but not in excess of $2,400.” (In plain English, it maxes out at $1,800.)
• Qualified Transportation Fringe Benefits — The monthly limit to exclude transportation fringe benefits from taxable income is $120 for a commuter highway vehicle or transit pass; $230 for qualified parking.
• Adoption Assistance Programs — The amount that can be excluded from employee income is $12,150 for adoption of a child with special needs. For other adoptions, the amount is $12,150 for qualified expenses. The amount excludable begins to phase out for taxpayers with modified adjusted gross income (MAGI) over $182,180. It phases out completely when MAGI reaches $222,180.
• Personal Exemption Amount – The personal exemption is now at $3,650; for taxpayers with MAGI over the maximum phaseout amount, it’s $2,433. (Phaseouts begin at $250,200 for Married filing jointly; $208,500 for Head of Household; $166,800 for Unmarried Individuals; $125,100 for Married filing separately.)
• Medical Savings Accounts — For self-only coverage, “high deductible health plan” is defined as one with an annual deductible of not less then $2,000 and not more than $3,000, as long as the annual out-of-pocket expenses required to be paid for beneifts (not including premiums) don’t exceed $4,000. For family coverage, the annual deductible for a “high deductible” plan is not less than $4,000 and not more than $6,050. The out-of-pocket limit is $7,350.  

For more details on the Tax Rate Tables, Earned Income Credit, Standard Deductions and more, download the entire listing.

Tags: A/P, Employee communication, Fringe benefits, Inflation adjustment, IRS, Payroll, Tax compliance, Tax credits, Tax tables