North Charleston Sewer District

New Tax Year Information

2010 Tax Rates

As you and your tax professional prepare your 2009 taxes you should consider updating your W-4 information to reflect your current status (married, single, dependents, income changes). Updated forms should be submitted to Human Resources. The following table includes the rates that will apply to your 2010 income.

Employees eligible for the earned income credit (EIC) must file a new Form W-5 with Human Resources. There is additional information about the earned income credit on the back of your W-2 form or you should check with your tax professional to see if you qualify.

2010 Tax Rates

►FICA Rate            7.65%

       SS              6.2 %      

       Medicare   1.45%           

►SS Wage Base   $106,800

►Medicare Wage Base   Unlimited

►Annual Withholding Allowance         $3,650

►Income Tax Rates 10%, 15%, 25%, 28%, 30%, 33%, 35%

►IRA Contribution Limit    $5,000

►IRA Catch-up Contribution Limit                                  $1,000

Qualified Retirement Plans

►Contribution limit for 401(k), 403(b), Sec.457, SEP       $16,500

►Contribution limit for a Defined Contribution Plan (or 100% of Compensation)            $49,000

►Catch-up Contribution Limits:

401(K), 403(b), SEC 457 and SEP              $5,500

►Simple Plans    $2,500

►Standard Mileage Rate:

      50 cents per mile

TAX CREDITS

There are many tax credits available to you be sure to ask your tax professional to see if you qualify. Some of the new or extended credits you might qualify for are: the energy credit for replacing windows and doors – (note you must meet minimum standards); the new car credit; the first-time home buyers tax credit $8,000 which has been extended through April 30, 2010;

Available for 2010

As stated above the first-time home buyer credit has been extended through April 30, 2010 and there is a new $6,500 credit for current homeowners who want to purchase a new primary residence after living in their current home for five consecutive years.  Check with your tax professional or go to the IRS web site to get all the details.

New Employees

Philip Covington - Operations - October, 2009

Melinda Chambers - Commission - December, 2009

January is National Radon Action Month

    You can’t see, smell, or taste radon, but it could be present at a dangerous level in your home.  Radon comes from the natural (radioactive) breakdown of uranium in soil, rock and water and gets into the air you breathe.  It is the leading cause of lung cancer deaths among nonsmokers in America and claims the lives of about 20,000 Americans each year.  In fact, the EPA and the U.S. Surgeon General urge all Americans to protect their health by testing their homes, schools, and other buildings for radon. Exposure to radon is a preventable health risk, and testing radon levels in your home can help prevent unnecessary exposure.  If a high radon level is detected in your home, you can take steps to fix the problem to protect yourself and your family.   For more information, go to http://www.epa.gov/radon/nram/public.html

Deferred Comp Changes

Effective January 1, 2010, Great-West Retirement Services® (Great-West) will replace ING as the provider of services for the South Carolina Deferred Compensation Program (SCDCP or Program). You can now view the transition bulletin announcement on the State Retirement System Web site at http://www.retirement.sc.gov/news/.

You may also want to take the time to visit the transition Web site (soon to be the main Web site for the South Carolina Deferred Compensation Program) at http://www.southcarolinadcp.com.

            Please note that this transition will not change your account value—and you don’t have to do anything during the transition process. There will be a period, however, when you won’t have access to your account. This period, called a “blackout period,” will occur from approximately December 30, 2009, to January 11, 2010. During this time, your account will be moved from ING to Great-West, and it will be processed and verified for accuracy. Again, for all information involving this transition, please visit the above Web sites.

The Pipeline is published quarterly. Submit articles to Kathie Stuber or Bobbie Stewart through interoffice mail or e-mail.

Commission Chairperson
     Mary Miller
District Manager
     Jimmy L. Green

Contributors

     Mary Trussell