Because it matters greatly to solo practitioners, you need to know that the IRS has issued the new tax rates and calculations for 2010. Most remain unchanged, but by law the dollar amount for various tax provisions are adjusted for inflation.
You can find a copy of the new provisions by CLICKING HERE. But, here are the basic changes:
• The value of each personal and dependency exemption available to most taxpayers is unchanged from 2009 at $3,650.
• The new standard deduction for heads of household will be $8,400, up from $8,350.
• The standard deduction remains unchanged at $11,400 for married couples filing a joint return and $5,700 for singles and married individuals filing separately.
• Various tax bracket thresholds will see minor adjustments. For example, for a married couple filing a joint return the taxable income threshold separating the 15 percent bracket from the 25 percent bracket is $68,000, up from $67,900 in 2009.