Mid-Year 2010 — Tax News
My GOAL for this website is to keep my clients and potential clients informed in plain everyday language. Changes in current and/or upcoming tax laws will probably affect most, if not all, taxpayers. Some of these changes MAY affect your current or future tax liability and should be considered when making financial decisions.
Commercial: Of course, I also want to offer my tax services consisting of personal tax preparation and audit representation, if anyone should need it. ;-D
The following are just a few of the topics covered on this website and/or in the Mid-Year 2010 Newsletter. If you would like a copy of Mid-Year 2010 and future newsletters, just click on the “Contact Me” tab to request it. I will be happy to add you to my newsletter mailing list … even if I do not provide tax service to you. You can, of course, opt out at any time. ;-D
NOTE: For up-to-date postings on the latest tax news out of IRS/Washington, click on “Fed Tax News” on the navigation bar.
Familiar Rules Have Now Expired – Will They Return
for Tax Year 2010?
Over 40 Rules used by individuals expired on December 31, 2009. Congress wants to extend several, but no results yet. Here are some of the best known:
Other Provisions that died on December 31, 2009 for individual tax payers, that we might or might not see a revival of, include: Sales Tax vs State Income Tax choice for itemizers and COBRA subsidies for laid-off employees.
Tax Credits That Are Scheduled to Expire in 2010
Marriage Penalty Issues. Until 2001 people saw a tax increase if they married. In 2001, new rules removed many inequities. Problem — those rules are set to expire in tax year 2010.
Captial Gains Rates of 0% / 15% depending on income. They are set to return to 10% / 20%.
The “Making Work Pay” provided a credit of up to $400 in tax year 2009. Couples got up to $800. This credit WILL still apply in tax year 2010, but disappears for tax year 2011. Withholding tables will go up to keep most folks at the same tax position for tax year 2011.
Most retired folks got a $250 one-time check in May 2009 – some got their $250 when they filed their tax return. These payments were for 2009 only.
Taxes Going Up?
There’s lots of talk about tax increases lately.
A group called The Tax Foundation studies our total tax burden. They measure a date called “Tax Freedom Day”. It’s the date when Americans will have earned enough to pay a year’s worth of federal, state, and local taxes. In 2010 it was April 9, a day later than in 2009. The date has not fallen this early since the group began checking in 1948. One way to look at this — we have never seen such a large gap between what the government spends and what it collects. One logical solution is to begin collecting more!
NOTE: For information on a lot more tax topics …
Click on Site Map on the navigation bar to see a condensed list of all topics on my site and/or review the list of Recent Posts on the right sidebar. If you have a specific topic in mind, key it in the Search box located in the top right sidebar. If you have a tax question, just click Tax Q&A Blog“ on the navigation bar and enter your question there. ;-D