2010 Tax Changes Article

Discussion in 'Random Ramblings' started by PineappleMama, Dec 14, 2010.

  1. PineappleMama

    PineappleMama Chillin' With My Peeps

    http://finance.yahoo.com/taxes/article/111561/2010-tax-changes-you-need-to-know?mod=taxes-advice_strategy

    Saw this article over on yahoo... no politics in it, just states facts. None of them apply to US personally, but might give a heads up to some on here so thought I'd pass it along... didn't post the WHOLE thing, but here's the intro, the 4 sections, and the outro. To read the details of the sections clicky de linky.

    2010 Tax Changes You Need to Know

    Despite the availability of professional tax preparation services, an estimated 40% of Americans do their own taxes. The typical do-it-yourself filer needs about 24 hours to complete the task, according to the IRS.

    Commercially available software undoubtedly makes the job a lot easier, but no brand is guaranteed to be infallible. Thus, it's important for do-it-yourself filers to keep up as best they can with relevant changes to the tax code as a safeguard against errors in their tax prep software. Here are four of the most important changes to know about as you prepare your 2010 return.

    1. Smaller Deductions for Business and Medical Mileage

    2. Better Limits on Deductions for Property Damage or Loss Due to Theft

    3. Deduction for Taxes and Fees on New Motor Vehicle Purchases

    4. Bigger Deductions for Long-Term Care (LTC) Insurance Premiums

    Other Tax Law Changes

    As you can probably imagine, the government has tinkered with the tax rules quite a bit more than this article describes. To see what other potentially beneficial changes have been made, check out a list called "Tax Changes for Individuals" at the IRS website. Who knows what other sorts of breaks you might unearth?

    Just for the heck of it here's a shortcut to the recommended "Tax Changes for Individuals" at the IRS website

    http://www.irs.gov/formspubs/content/0,,id=178012,00.html

    Under Child-Related Tax Changes notice the EIC one?

    Earned Income for Additional Child Tax Credit

    2010

    For 2010, the amount your earned income must exceed to claim the additional child tax credit is $3,000.

    Exceed What?? Anyone have a guess?
     
  2. AngieChick

    AngieChick Poultry Elitist

    Thank you for posting this.
     
  3. nonseq

    nonseq Chillin' With My Peeps

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    Sep 16, 2009
    Central Ohio
    Exceed $3000.
     
  4. booker81

    booker81 Redneck Tech Girl

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    Apr 18, 2010
    Mid-MI
    Quote:You have to make more than $3000 to get the additional child tax credit - in 2008, the level was $8500. 2007 it was $11,750. So, now (and in 2009)lower incomes can claim the additional child tax credit.
     
    Last edited: Dec 14, 2010
  5. PineappleMama

    PineappleMama Chillin' With My Peeps

    Ah gotcha... one more that doesn't effect our return, phew! Thanks for that.

    Though, not really any wonder we're in the hole with numbers like that...

    Make $3001 pay 25% in tax = 750 then they'll pay you $3k back... Citizen brings home $5251 for the year.

    Nope, not any wonder at all that we're up to our eyeballs in debt...
     
  6. Dunkopf

    Dunkopf Chillin' With My Peeps

    Sep 24, 2010
    Kiowa, Colorado
    Quote:Probably cheaper than welfare. If you have a kid and only earn 3000 a year. Earned income credit has stipulations like being head of household.

    A lot of millionaires only pay 15% or less in tax. That's because they live off of investment income which is taxed at 15% unlike money you work for. Go figure that one out. That's why a multi billionaire like Warren Buffet pays a lower % than his secretary. I'm a lot more concerned about shenanigans like that.

    I've been using Turbo Tax for 8 years now. No mistakes yet. The tax laws change so fast that you can start working on your return and save it. Come back a week later and it takes 5 minutes to run the latest updates.

    Wait till you see the changes for 2011.
     
  7. PineappleMama

    PineappleMama Chillin' With My Peeps

    ^We used smarttax.com and it was fabulous, and free. Plan to use it again this year.

    Of course, our return is super easy. 1 W-2, no investments, EIC is the only "complicated thing" about it. So we can use that sort of thing. Can't even imagine the folks stress when they have to itemize. *shudder*

    As to WB example... income is income, whether you're a secretary or a plumber it should all be taxed the same IMO... in a country that screams about not punishing based on sex, race, religion... says we have no caste system... then why are some paying more than others?? Flat rate is the only way to be equal across the board. 17-20% (I donno at this point exactly what we'd have to do since the latest mass spending spree) with NO LOOPHOLES FOR ANYONE... and there ya go... eh, it's a theory.
     

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