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Sales
Tax Deduction Choice. Taxpayers may
choose to deduct sales tax instead of state income tax.
Educator
Expense Deduction Reinstated. The
provision allowing educators and other professionals to deduct up to $250
annually above the line for out-of - pocket expenses in elementary and secondary
schools has been reinstated for the 2008 and 2009 tax years.
Effective January 1,
2009 school board employees may defer up
to $25,000 in their Tax Sheltered Account
Program/ 403 (b). The basic limitation is $16,500. In addition participants
age 50 or older may defer an additional $5,500. Employees with 15 or more
years of service may still contribute an additional $3,000 annually.
Traditional IRA's or funds eligible to be rolled into a traditional IRA
may now be rolled into a TSA, once a qualifying event occurs. Examples of
qualifying events include age 59.5 and termination of employment. This is big news for DROP participants. Now
you can roll your DROP funds into your existing TSA accounts. However, it
is necessary to make certain that your TSA will accept a rollover.
The Traditional and Roth Individual Retirement Account limitation is
$5,000. Participants age 50 or older may save an additional $1,000.
The Coverdell Educational Savings Account (Education IRA) limitation is $2,000.
SIMPLE Plan employee maximum contribution limit is $11,500. Workers age 50
and older may save an additional $2,500.
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