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What’s New for Your 2010 Federal Income Taxes
by Milton Gugenheim
The following are the new/changes for Tax Year 2009. Go down the list for ones specific to your tax situation. Obtained specifics from publications at the IRS. Call, toll free, 1-800-929-3676 or internet at www.irs.gov– a friendly and useful site.. (Click on the upper left corner on “Form and Publications” to find and down load your publication).
1. EIC - income credit limits have been raised
2. Personal casualty or theft loss - reduced to $100 vs. $500.
3. IRA deduction increased for a person in a qualified retirement plan.
4. Roth IRA income limits – raised to $120,000, single ($177,000 MFJ)
5. Conversion to Roth IRA – no income limit required in 2010. Will be included in equal amounts in 2011 and 2012 income, or full amount in 2010 income.
6. Mileage is 50 cents per mile. Others, no change.
7. Expiring tax benefits:
- Deduction for education expense in figuring AGI.
- Tuition and fees deduction to AGI.
- State income tax or local sales tax.
- ax on a motor vehicle (Schedule L in 2009)
- Unemployment compensation exclusion of $2,400
Note: Subject to changes by Congress.
Milton Gugenheim is a HAL-PC member and has been an AARP Tax Aide Instructor and Local Coordinator for over eighteen years. He may be contacted at mgug@hal-pc.org.
Editor’s notice: This article does not constitute tax advice and is presented for informational use only. For complex questions unique to your situation consult a tax accountant or lawyer. Note: Even the IRS will not guarantee its own advice.
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