Archive for Sunday, January 28, 2001

IRS makes some changes that taxpayers need to know about

January 28, 2001


While taxpayers don't face tumultuous tax law change this filing season, they will get new personal exemptions and standard deductions.

Courtesy of annual inflation adjustments, this year's standard deduction is $4,400 for a single taxpayer, $7,350 for a married couple filing jointly. The personal exemption amount is $50 more than last year at $2,800, subject to limits for some higher-income people.

There are also changes in the income thresholds to determine if someone must file a tax return at all. The IRS requires taxpayers to file a return if their gross annual income is at least $7,200 for a single person, $12,850 for a married couple filing jointly. Different amounts apply to people age 65 or over.

Other highlights of what's new this year:

People can choose their own PIN numbers to file returns electronically, eliminating the need for a separate paper signature form.

Taxpayers can check a box on the 1040 form to authorize the IRS to discuss any processing problems directly with a paid preparer.

Taxpayers can now deduct up to 32 1/2 cents per mile for business mileage in 2000.

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