Friday, December 03, 2010

2010 Tax Changes

Here are some tips on 2010 tax changes that will affect you and the amount of your refund.

1. Head of household. The head of household standard deduction increased by $50.
2. Mileage. The mileage deduction rates decreased: $.50 for business travel, $.14 for charitable services, and $.165 for medical travel.

3. EIC Credit. The maximum Earned Income credits that can be received as indicated below:
• No Children - $457
• One Child - $3,050
• Two Children - $5,036
• Three or More Children - $5,666

4. Hope Credit. Used for the first 2 years of post-secondary education increased to $2,500 in 2010. Includes 100% of qualifying tuition and related expenses up to $2,000 (plus 25% of those expenses that do not exceed $4,000 but begins phasing out for taxpayers who earn more than $80,000).

5. Energy Credit. Home energy efficiency improvements can claim a tax credit for 30% of the cost up to $1,500

6. Car Credit. Individuals and businesses who buy or lease a new hybrid gas-electric car or truck are eligible for an income tax credit for vehicles "in service" starting January 1, 2006, and purchased on or before December 31, 2010

7. Home Buyer Credit. Military personnel can take advantage of the home buyers tax credit through April 2011.

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