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Hamilton & Phillips P.A.
Established 1983

Questions:
What is the maximum taxable Social Security earnings for 2009?
What is the 2009 standard mileage rate?

Answers:
What is the maximum taxable Social Security earnings for 2009?
$106,800




What is the 2009 standard mileage rate?
Beginning on Jan. 1, 2009, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

55 cents per mile for business miles driven
24 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.