December, 2010 Newsletter
TAX UPDATES
- The base standard deductions for 2010 are:
- Married filing joint or qualified surviving spouse - $11,400*
- Single or married filing separate - $5,700*
- Head of Household - $8,400*
- The amount allowed for personal and dependent exemption for 2010 is $3,650.
- The lower federal income tax rates for dividend and capital gain income have been extended through 2010. (Click here for Rates)
- The expensing deduction for farm or business equipment purchases has an upper limit of $500,000 for 2010 and $500,000 for 2011.
- The income tax deduction for self-employed health insurance premiums may be deducted in calculating net earnings from self-employment for tax year 2010
- Making federal tax deposits (FTD) using paper coupons will not be possible after December 31, 2010........more
- NEBRASKA has added a "Use Tax" line item on the Nebraska income tax return for individuals to report use tax owed on internet, catalog, or out of state purchases where Nebraska sales tax has not been charged.
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Deduction for Sales Taxes Paid on Purchase of New Motor Vehicles In 2009, you could deduct the sales taxes imposed on the purchase of a qualified motor vehicle made after February 16, 2009 and before 2010....... more
The following Tax Credits are still available in 2010:
TAX CREDITS
Expanded Hope Scholarship Credit
For 2009 and 2010, an enhanced Hope Scholarship tax credit, named the American Oppurtunity Credit is available for the first four years of post-secondary education. The maximum credit is $2,500 on qualified expenses of $4,000.......more
First-time and Long-time Homebuyer Credit
The First-time homebuyer credit was recently extended and expanded. Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy a principal residence on or before April 30, 2010 and close on the home by September 30, 2010........more
Residential Energy Improvement Credit
Tax credits are available for 30% of the cost, up to $1,500 in 2009 and 2010, for qualified energy improvements and residential energy property expenditures.......more
Taxpayers who buy certain vehicles may qualify for the hybrid motor vehicle credit. The credit is available for certain passenger automobiles and light trucks purchased after December 31, 2005 and before January 1, 2011, and for certain heavy-duty vehicles purchased after December 31, 2005 and before January 1, 2010.......more