New 2010 Tax Changes | Finance Reference

Before you file 2010 taxes in Spring of 2011, you should carefully examine the individual tax return instructions for important changes. In the 2009 instructions for Form 1040, the IRS listed many changes to expect for the 2010 tax year.

2010 Taxes Expiration?s, Increases in Tax Deductions & Tax Credits

The important changes below are to take place after 2009. Individuals should be aware of these before filing taxes for 2010.

Adjusted Gross Income (AGI) limitations will no longer affect personal exemptions & itemized deductions.
Individuals will be allowed to claim personal casualty & theft losses in excess of 0
IRA deductions will open up to even more taxpayers
Many tax breaks will expire, such as the government retiree credit and the deduction for state and local state taxes.
Many allowable AGI will increase in relation to the Earned Income Credit (EIC)
More credits may be taken against alternative minimum tax
The alternative minimum tax (AMT) exemption will decrease.
Those who claimed first time home buyer tax credits in 2008 must begin repayment.
Track changes to 2010 Income Taxes on the IRS website.

Most tax changes aren?t announced until later in the tax year. As 2011 nears & 2010 tax forms are released, taxpayers should look for the IRS to confirm 2010 standard mileage rates. Even if things like personal exemptions & standard deductions don?t change, the IRS will also clarify the applicable 2010 amounts on its website.

2010 Tax Breaks Certain Deductions for Taxes May Expire

Certain 2009 tax breaks may or may not be around in 2010. Unless Congress takes action, individuals should be aware of the following tax breaks that were available in 2009, yet may not be renewed for 2010 income tax returns:

Additional deduction for state and local property taxes for those who don?t itemize.
Deduction of up to 0 in classroom supplies (available for teachers & other educators)
Election to itemize state and local sales taxes instead of state and local income taxes
Up to ,400 of unemployment benefits excluded from gross income.

While the above list is not exhaustive, it points out five popular deductions for taxes that may not be available in 2010. If you still have questions go IRS online tax help. You can also get last years Tax return copies online.

Source: http://www.maysabelnyo.com/new-2010-tax-changes.html/

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