Newsletter 2010
Newsletter 2010
Individuals
Individuals
Print Full ArticleLast Reviewed: Jan 2011
Last Modified: Jan 2011
Hot Issues for Individual Filers.
Tax Rates will not Increase. The signature provision of the 2010 Tax Relief Act keeps all income tax rates the same from 2010 through 2012 retaining lower tax rates originally put into place during the Bush administration.
Last year for Making Work Pay Credit. 2010 is the second and final year for the Making Work Pay Credit worth $400 for individuals and $800 for married couples. This credit is refundable making it available even if you owe no tax.
Educator Classroom Expense Deduction is Still Available. The 2010 Tax Relief Act revived the educator expenses deduction of $250 for our teachers.
Robust Tuition Credit Extended along with Tuition and Fees Deduction. The American Opportunity Credit for tuition expenses first made available in 2009 is available again in 2010 and will also be available in 2011 and 2012. It offers a higher credit for education expenses than was previously available. The Tuition and Fees Deduction was also revived for 2010 and will be available in 2011.
Sales Tax Deduction Still Available. Our Washington filers will again benefit from the sales tax deduction in 2010 and it is extended into 2011.
Holiday from Limit on Itemized Deductions. Higher income taxpayers that used to suffer a reduction in itemized deductions are spared this treatment for 2010 as well as 2011 and 2012.
IRA Charitable Donation Rules. Special IRA charitable donation rules are available again in 2010 and extended into 2011. These rules allow direct gifting of IRA accounts to a charity.
AMT Relief for 2010. We have an AMT patch which creates an exemption amount of $72,450 for married filers. Without the patch many, many taxpayers would have been subjected to this tax.
Energy Credits. Federal and state tax credits for energy efficient improvements and appliances are still available for 2010. The federal credits are extended for 2011 and 2012 in a scaled down version.
