Early thoughts on 2010 tax filing

As I started organizing for my annual 1040 meeting, my A.D.D. kicked in so I’m sharing some tidbits with anyone who “just had to know the latest IRS confoundings”… Did you know that this year’s filing deadline is April 18th? It’s due to an obscure holiday observed in Washington D.C. ~ “Emancipation Day”. So to you procrastinators, enjoy those few extra days of keeping your money from UncleBigGov!

Anyone collected Unemployment in 2010? You’ll have to report 100% as income, since the “first $2,400” break was not extended into 2010. I guess they gave away sooo much money, they need to collect all the taxes back!

Good news for my high-income earner clients – those phase-outs on your itemized deductions & exemptions were repealed for 2010! Now you can enjoy the benefits as you ought. This repeal extends to 2011 and 2012 too!

My Self-Employed compadres will get a break for health insurance premium deductions. It goes on Line 3 of Schedule SE, reducing both income tax and Self-Employment tax! Only good for 2010, though so take advantage!!

There are other changes for 2010, (Adoptions Credits increased, First-time Homebuyer Credit repayment, etc.) so be sure your CPA doesn’t miss any of them. Have fun with Tax Season!