This is one update in our series of changes in 2009 estimated taxes that I hope a lot of you don’t need to know. It’s about personal casualty and loss.

According to the IRS, a personal casualty or theft loss must exceed $500 to be allowed. This is in addition to the 10%-of-AGI limit that generally applies to the net loss.

Paying estimated taxes this year? Keep the following about standard mileage rates in mind.

According to the IRS, the standard mileage rate for the cost of operating your car is:

• 55 cents a mile for all business miles driven
• 24 cents a mile for the use of your car for medical reasons
• 24 cents a mile for the use of your car for a deductable move
• 14 cents a mile for the use of your car for charitable reasons

Here’s a common question we get when we talk to people about 2009 estimated taxes,

“How does the government’s economic stimulus plan affect the quarterly estimated taxpayer?”

Good question. If you are self-employed or don’t have any income withheld from your paycheck (the most common occurrences of those that pay estimated taxes), then you need to know about the Making Work Pay tax credit.

To go back one step, the Making Work Pay tax credit is a refundable tax credit in 2009 and 2010 for working taxpayers. It amounts to $400 for individuals and up to $800 for married taxpayers filing joint returns. Taxpayers that are not self-employed get this credit a little bit at a time in their paycheck (as opposed to getting it in one lump sum).

Back to the self-employed. How are they supposed to reap the benefits of this tax credit? There are two ways:

1. Pay estimated taxes like normal and then claim the credit on their 2009 tax return.
2. Adjust the remaining estimated tax payment (by paying a little less) to account for the credit. Be careful here. This isn’t free reign to skip payments. Failure to pay enough could result in penalties.

If you are amongst the tens of millions of taxpayers paying quarterly estimated taxes in 2009, there has been a change in standard deductions that you should know about.

According to the IRS, you may be able to increase your standard deduction by the following amounts:

• Certain state or local real estate taxes you pay.
• A net disaster loss attributable to a federally declared disaster.
• Sales or excise taxes you pay on the purchase of certain new cars, trucks, motorcycles, or motor homes.

Today we’re continuing our look at what’s new in estimated taxes for 2009. The topic of the day is retirement savings plans – one of the more mainstream topics we’ll cover in this series.

I’ll share with you the highlights. If you need more specific info, I recommend you peruse IRS Publication 590 (PDF). That’s the best resource for this topic.

According to the IRS:

IRA Deduction Expanded: You may be able to take an IRA deduction if you were covered by a retirement plan at work and your 2009 modified AGI is less than $65,000 ($109,000 if married filing jointly or a qualifying widow(er)). If your spouse was covered by a retirement plan but you were not, you may be able to take an IRA deduction if your modified AGI is less than $176,000.

Elective salary deferrals: The maximum amount you can defer under all plans generally is limited to $16,500 ($11,500 if you have only SIMPLE plans; $19,500 for section 403(b) plans if you qualify for the 15-year rule). The catch-up contribution limit for individuals age 50 or older at the end of the year is increased to $5,500 (except for section 401(k)(11) plans and SIMPLE plans, for which this limit remains unchanged).

Retirement savings contributions credit (saver’s credit): For 2009, the income limits have increased and you may be able to claim this credit if your modified AGI is not more than $27,750 ($55,500 if married filing jointly, $41,625 if head of household).

Temporary waiver of certain required minimum distribution rules: No minimum distribution is required from your IRA or employer-provided qualified retirement plan for 2009.