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Constantly changing tax rules make it challenging to stay informed from one year to the next about your tax-cutting options. Here’s a quick look at some of the 2010 changes that could affect you. For more complete review, contact our office.
The first – year business equipment expensing limit was increases to $250,000 Without the Hiring Incentive to Restore Employment Act (HIRE) of 2010 the 2010 limit would have been $125,000. The amount of wages subject to social security tax increased to $106,800. Retirees under age of 65 can earn 13,560 in 2010 without losing benefits The estate tax exemption repealed at the end of 2009 estate tax is scheduled to return in 2011 but at an unfavorable rate. Currently the amount exempt from estate tax is unlimited The standard mileage rate for business driving in 2010 is .50 cents per mile, and the mileage rate for medical and moving expenses is .19 cents a mile. The “kiddy tax” threshold increased in 2009 to $1,900 and remains in 2010. And the tax this year applies to children up to the age of 19(24 for full time students) The “Nanny Tax” threshold increased in 2009 to $1,700 and remains in 2010. If you pay household workers more than this amount during the year, you’re responsible for payroll taxes. Certain tax breaks for energy – saving activities were extended through 2010 including the business energy credit, the homebuilder’s credit for building energy efficient homes, and the residential alternative energy credit. The itemized deduction income limit is repealed for 2010. Tax return preparers must meet stricter IRS requirements before signing tax returns. The rules are likely to mean more work, increased recordkeeping, and higher costs for accountants and their clients. Tax preparers must now obtain a signed release from clients to submit tax information to third parties. |
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