Tax Season is Here

Below are some of the important changes that took effect in 2010 regarding taxes.

Due Date of Return

Form 1040 must be filed by April 18, 2011 (due to the Emancipation Day holiday in the District of Columbia).

Standard Deduction

You can no longer increase your  standard deduction by: state or local real estate taxes, new motor vehicle taxes (for vehicles purchased in 2010) or disaster losses (for disasters
occurring in 2010).

Standard Mileage Rate Below are the 2010 standard mileage rates for the use of a car:

Business: 50 cents / mile

Medical/moving: 16.5 cents / mile

Charitable service: 14 cents / mile

Non-business Energy Property Credit

You can take credit based on what you spend on various energy-saving improvements made to your main home. The rate is 30% of the cost of all qualifying improvements, with a maximum credit limit of $1,500, for improvements placed in service in 2010.

Exemption/Deduction Limits

For 2010, you will no longer lose part of your deduction for personal exemptions and itemized deductions, regardless of the amount of your AGI.

Repayment of First-Time Homebuyer Tax Credit

If you claimed the credit for a home you bought in 2008 and you owned and used the home as your main home during all of 2010, you must begin repaying that credit with your 2010 tax return.  (see Chapter 37)

Roth IRAs

Beginning in 2010, you can make a qualified rollover contribution to a Roth IRA regard­less of the amount of your modified AGI. (see Chapters 10 and 17).

Tax Assistance Toll Free Lines

1-800-829-1040 Individual

1-800-829-4933 Business

The above information was compiled from the Tax Guide 2010 for Individuals publication on Janu­ary 18, 2011.  Please consult a tax accountant or visit the IRS websites listed below for complete details on tax credits and deductions.

http://www.irs.gov/pub/irs-pdf/p17.pdf

www.irs.gov