SOURCE: National Association for the Self-Employed (NASE)

National Association for the Self-Employed (NASE)

January 13, 2010 00:01 ET

2009 Tax Changes for the Self-Employed

NASE Offers Self-Employed Tips for Getting a Jump on the Filing Season

WASHINGTON, DC--(Marketwire - January 13, 2010) - Prior to preparing 2009 tax forms, the self-employed and micro-businesses (fewer than 10 employees) should be aware of a few tax law changes, including changes in the standard mileage rate and the self-employment tax.

"January is a great time to get a jump on your 2009 tax return," said Keith Hall, national tax advisor for the National Association for the Self-Employed (NASE). "The earlier a business owner can get organized, the more likely he or she will have the time to investigate eligibility requirements for additional tax benefits."

The following tax law changes relate to 2009 returns:

--  Homebuyer Credits -- If you operate a business from an office in your
    home, you may be eligible for additional tax incentives. Depending on when
    the home was purchased and how long you lived in a prior residence, you may
    be eligible for a credit of up to $8,000. The credit is similar to an
    interest-free loan.
--  Making Work Pay Tax Credit -- Many taxpayers will qualify for a
    making work pay credit of $800, if married and filing jointly, or $400 for
    other taxpayers. The credit is equivalent to 6.2 percent of earned income
    up to the maximum amount.
--  Standard Mileage Rates Adjusted for 2009 -- Business owners using
    their vehicle for company business can deduct 55 cents per mile driven on
    their 2009 tax return. The rate has also been set for 2010 at 50 cents per
--  Contribution Limits for IRAs and Other Retirement Plans -- Where an
    IRA contributor who is not covered by a workplace retirement plan is
    married to someone who is covered, the deduction is phased out if the
    couple's income is between $167,000 and $177,000.
--  Self-Employment Tax Changes -- The tax rate for self-employed
    business owners remains at 15.3 percent, though the income threshold has
    increased to $106,800. All net earnings from self-employment of at least
    $400 are subject to the Medicare part of the tax.
--  AMT Exemption Increased for 2009 -- For tax year 2009, the exemption
    for a married couple filing a joint return is $70,950, $35,475 for a
    married person filing separately, and $46,700 for singles and heads of
    household. Children who earn less than $6,700 are not subject to the AMT.

Worried you will be unable to meet your tax obligation? It is important you still file your return even if you are unable to pay the tax you owe. Contact the IRS at 1-800-829-1040 as soon as possible if you foresee tax payment difficulties. The agency will work with you to discuss your options.

In preparation for the filing deadline, self-employed business owners can turn to Hall and other qualified CPAs for help through NASE's TaxTalk program here. While there, they can submit a tax question and browse the TaxTalk resource library.

Find out more information about these and other tax law changes for the 2009 tax season at

About the NASE

The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) non-profit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's web site at

Contact Information

  • Contact info:
    Kristin Oberlander
    (202) 466-2100
    Email Contact
    Twitter: koberlander