New Vehicle Sales Tax Deduction….Some Confusion
The IRS did not extend the benefit of the sales tax deduction for vehicles purchased in 2010. Individuals who purchased vehicles in 2009 had the benefit of deducting the sales tax they paid for the vehicle, in addition to the withholding tax paid for state withholding taxes. For 2010, the IRS only allows the sales tax deduction for the purchase of vehicles in 2010 only if the vehicle was purchased in 2009 and the sales tax paid in 2010. Or, if the taxpayer prefers, using the 2010 sales tax deduction on the schedule A instead of the 2010 state...
read moreImportant Tax Law Changes for 2010
Taxpayers should make sure they are aware of many important changes to the tax law before they complete their 2010 federal income tax return. Here are several important changes that the IRS wants you to keep in mind when you file your 2010 federal income tax return in 2011. Health Insurance Deduction Reduces Self Employment Tax In 2010, eligible self-employed individuals can use the self-employed health insurance deduction to reduce their social security self-employment tax liability in addition to their income tax liability. As in the...
read moreAre Your Social Security Benefits Taxable?
The Social Security benefits you received in 2010 may be taxable. You should receive a Form SSA1099 which will show the total amount of your benefits. The information provided on this statement along with the following seven facts from the IRS will help you determine whether or not your benefits are taxable. How much – if any – of your Social Security benefits are taxable depends on your total income and marital status. Generally, if Social Security benefits were your only income for 2010, your benefits are not taxable and you...
read moreEight Facts about Claiming the First-Time Homebuyer Credit
If you purchased a home in 2010, you may be eligible to claim the First-Time Homebuyer Credit, whether you are a first-time homebuyer or a long-time resident purchasing a new home. The purchaser must have been at least 18 years old on the date of purchase; for a married couple, only one spouse must meet this age requirement. A dependent is not eligible to claim the credit. Here are eight things the IRS wants you to know about claiming the credit: You must have bought – or entered into a binding contract to buy – a principal...
read moreHere is What to do If You Are Missing a W-2
Before you file your 2010 tax return, you should make sure you have all the needed documents including all your Forms W-2. You should receive a Form W-2, Wage and Tax Statement, from each of your employers. Employers have until January 31, 2011 to send you a 2010 Form W-2 earnings statement. If you haven’t received your W-2, follow these four steps: 1. Contact your employer If you have not received your W-2, contact your employer to inquire if and when the W-2 was mailed. If it was mailed, it may have been returned to the employer...
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