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Tax Tips for 2010 Returns
Making Work Pay Credit
This credit of $400.00 for working employees has been extended.
First Time Homebuyer Credit:
This credit is available if a taxpayer purchased a home for the first time. The home had to be purchased by April 30,2010 and closed by Sept. 30,2010. For new home construction the home had to be occupied by Sept. 30, 2010. This credit is $8000.00 and does not have to be repaid.
A credit of $6500.00 is available for a home purchase if the taxpayer has owned and lived in a principal for five consecutive years during the eight years before the new home is purchased. The home has to be purchased by April 30, 2010 and closing has to be before Sept. 30, 2010.
Energy Credit
The energy credit is still available for 2010 returns. This credit is up to $1500.00 for storm windows, exterior doors, insulation, and heating systems. Restrictions apply and the work was be completed by Dec. 30, 2010 to qualify for the credit.
Lower Social Security Deduction for 2011
The social security deducted from an employee pay will be reduced by 2% for 2011.
Delayed Filing
Taxpayers who itemize their deductions on Schedule A will have to wait to file their 2010 tax returns. Because of changes that were passed late in 2010, IRS will not accept returns with a schedule A until mid or late February. This includes both paper filed and electronically filed returns. Returns can be prepared as usual but cannot be transmitted or mailed to IRS until mid or late February.
Due Date for Filing
This year the due date for filing returns is April 18 instead of April 15.
Repay First-
If you purchased a home in 2008 and took the homebuyers credit you have to start repaying this credit on your 2010 tax return. This was the $7500.00 credit that was required to be repaid over 10 years.