IRS announced today that the effect of inflation on tax rate brackets and many other tax benefits would remain unaltered or see a very slight change only in 2010.

In the past  more than three dozen tax benefits have been subjected to inflation adjustments every year. In contrast due to inflation factor being minimal, 2010 would see no or little changes in tax benefits.

Lets take a look on what’s in store for most taxpayers in the coming year:

• Personal and dependency exemption’s value would remain unaltered ay $3650.
• Deductions for head of households has increased from this year’s $8350 to $8400 although for other taxpayers like married people filing for a joint return and for singles or married individuals filing separately, the amount remains the same, $11,400 and $5700 respectively.
• The annual gift tax exemption remains the same at $13,000.
• Tax bracket thresholds would see only minor changes.