Tax time is here again. But there are some 2010 rule changes to keep in mind. Following are some of the items:
- The due date is April 18. Income tax returns for individual calendar-year taxpayers are normally due by April 15, but that date is a holiday in the District of Columbia.
- You can extend the deadline to October 17 by filing Form 4868 on or before April 18.
- Phaseouts for itemized deductions such as dependents, mortgage interest, state and local income and property taxes, and charitable donations were repealed for 2010 as part of the Bush-era tax cuts, so you can write off the full amount of your itemized deductions and exemptions on your 2010 Form 1040.
- Individuals who do not itemize can no longer write off a portion of their state and local real estate property taxes by claiming an increased standard deduction.
- The self-employed can deduct their health insurance premiums on line 29 of Form 1040 and on line 3 of Schedule SE.
- The first $2,400 of unemployment benefits is no longer free of federal income tax.
- You may have to repay part or all of the credit claimed for a 2008 or 2009 home purchase on Form 1040 – but in general, only those who bought homes in 2008 will be affected.
- Your tax preparer might be forced to e-file your 2010 Form 1040 even if your returns for earlier years have always been done on paper.
- The tax and legal information in this article is merely a summary of our understanding and interpretation of some of the current laws and regulations and is not exhaustive. Investors should consult their legal or tax counsel for advice and information concerning their particular circumstances.