Tax Filing Tips 2010
Tax Filing Tips 2010 – Here are some tax filing tips for 2010 and some important numbers as you prepare to file your 2009 tax return:
Personal exemption:
Each personal or dependent exemption is now worth $3,650, up $150 from 2008.
Standard deduction:
$11,400 for married couples filing a joint return, and qualifying widows and widowers.
$5,700 for singles and married individuals filing separate returns.
$8,350 for heads of household.
You may be able to claim a higher standard deduction if you are 65 or older, blind, paid state or local real estate taxes or sales or excise taxes on a new vehicle, or were a victim of a federally declared disaster.
Alternative minimum tax exemption:
$70,950 for a married couple filing a joint return, and qualifying widows and widowers.
$35,475 for a married person filing separately.
$46,700 for singles and heads of household.
Home buyer credit:
Up to $8,000 for first-time homebuyers for purchases made through April 30, 2010.
Up to $6,500 for long-time homeowners for purchases made between Nov. 7, 2009 and April 30, 2010.
To qualify, the home must be used as a primary residence. The credit begins phasing out for married couples filing jointly with modified adjusted gross incomes above $225,000 and for individuals with incomes above $125,000.
Energy efficiency credit:
30 percent of the cost of installing energy-efficient windows or doors, air conditioners or furnaces, or other energy-saving improvements, up to a maximum $1,500.
American Opportunity Credit:
Up to $2,500 to cover college tuition, fees and required course materials.
To qualify, the student may not have completed four years of college. There are also income limits.
Earned Income Tax Credit:
The maximum earned income tax credit was raised to:
$5,657 for people with three or more qualifying children.
$5,028 for people with two children.
$3,043 for those with one child.
$457 for people with no children.
Retirement:
If you’re covered by a retirement plan at work, the maximum modified adjusted gross income you can have and still take a deduction for IRA contributions rose to $65,000 — $109,000 if married filing jointly.
The maximum deduction is $5,000, $6,000 if you were 50 or older by the end of 2009.
Long-term capital gains taxes:
0 percent if taxed in the 10 percent to 15 percent brackets.
15 percent maximum for taxpayers in higher brackets.
Mileage deductions:
55 cents for each mile driven for business.
24 cents for each mile driven for medical reasons or part of a deductible move.
14 cents for each mile driven as part of charity work.
And that’s the latest from Action News on Tax Filing Tips 2010.
Tags: irs, tax filing tips, tax filing tips 2010, taxes
