STUDENT TAX STATUS
Contrary to popular belief, students DO have to pay taxes. However, a dependent student can earn up to $5700 and get the federal taxes withheld from their paychecks back as a refund. More Info

 

EIC INCOME LEVELS INCREASED
Earned Income Credit amounts and income limits have increased this year. Eligible tax fliers may receive $5,666 for up to three children. Even if you didn't qualify for earned income credit last year, you may this year. If you are married filing jointly, you can earn up to $48,362 and qualify for the credit. More Info

 

FIRST TIME HOMEBUYER CREDIT REPAYMENT
Taxpayers who received the First Time Homebuyers Credit on their 2007 tax return must begin repayment this year. The IRS will issue a notice reminder. More Info

 

BUSINESS MILEAGE DEDUCTION
If you use your personal vehicle for business, be aware that the mileage deduction is now 50¢ a mile, compared to 55¢ a mile for 2009. More Info

 

UNEMPLOYMENT BENEFITS
Last year, you could exclude up to $2400 of unemployment benefits from your taxable income. For 2010, there are no tax breaks for unemployment benefits. More Info

 

HOUSEHOLD EMPLOYEES
If you paid a household employee cash wages of more than $1700 in 2010, you must report and pay social security and Medicare taxes on those wages. More Info

 

SMALL BUSINESS EXPENSING
Under the Small Business Jobs Act, for tax years beginning in 2010 and 2011, the $250,000 limit is increased to $500,000 and the investment limit to $2,000,000. The Small Business Jobs Act also makes certain real property eligible for expensing. Thus, for property placed in service in any tax year beginning in 2010 or 2011, the $500,000 amount can include up to $250,000 of qualified leasehold improvement, restaurant and retail improvement property.

Before the Small Business Jobs Act, Congress already allowed businesses to more rapidly deduct capital expenditures of most new tangible personal property placed in service in 2008 or 2009 by permitting the first-year write-off of 50% of the cost. The Small Business Jobs Act extends the first-year 50% write-off to apply to qualifying property placed in service in 2010 (as well as 2011 for certain aircraft and long production period property). More Info