Important 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...
read moreProperty Taxes on Vacation Homes & Timeshares
BUYING THAT CHALET in the Arizona mountains may get you some much-needed peace and quiet. Then come the tax rules, which are pretty complicated. Depending on how often you use your vacation home yourself, how often you rent it out and how long it sits empty, you will fall into one of three different tax categories. Use a Lot, Rent a Lot The first category includes homes that are rented often but that are still used a fair amount by the owner. Specifically, this applies to homes that are rented more than 14 days a year and have personal...
read moreTaxable or Non-Taxable Income?
Generally, most income you receive is considered taxable but there are situations when certain types of income are partially taxed or not taxed at all. To help taxpayers understand the differences between taxable and non-taxable income, the Internal Revenue Service offers these common examples of items not included as taxable income: Adoption Expense Reimbursements for qualifying expenses Child support payments Gifts, bequests and inheritances Workers’ compensation benefits Meals and Lodging for the convenience of your...
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