Tax Updates For 2010
There are many laws constantly changing with the IRS. At Online Tax Pros we stay up to date with the latest tax changes so we can relay them to you, The Public. Here are some of the most recent tax updates for 2010:
Earned Income Credit
The maximum amount of the credit has increased. The most you can receive for 2010 is: -
$3,050 with one qualifying child -
$5,036 with two qualifying children -
$5,666 with three or more qualifying children -
$457 if you do not have a qualifying child
Earned income amount increased. The maximum amount of income you can ear & still receive the cedit has increased also. You may qualify for this credit if: -
You have three or more qualifying children & you earn less than $43,352 ($48,362 if married filing jointly) -
You have two qualifying children & earn less than $40,363 ($45,373 if married filing jointly) -
You have one qualifying child and you earn less than $35,535 ($40,545 if married filing jointly) -
You do not have a qualifying child & you earn less than $13,460 ($18,470 if married filing jointly)
The maximum amount of investment income you can have and still receive the credit remains at $3,100 for 2010. If you get the advance payments of the credit from your employer with you pay, the total advance payments you get during 2010 can be as much as $1,830
Economic Recovery Payment
If you receive any economic recovery payment during 2010 it is not taxable. These $250 payments were made in 2010 to people who: -
Received social security benefits, supplements security income (SSI), railroad retirement benefits, or veterans disability compensation or pension benefits in November 2008, December 2008, or January 2009. -
Live in the U.S. States, the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, American Samoa, or the Northern Mariana Islands -
did not receive an economic recovery payment in 2009
If your married an you and your spouse both meet these requirements, each of you may get a $250 payment. If you are entitled to a payment, you will automatically receive it, you do not apply for it. However, any payment you receive will reduce your making work payment credit.
Residential Energy Credits
Nonbusiness energy property credit. This credit, which expired after 2007, has been reinstated. You may be able to claim a nonbusiness energy property credit of 30% of the cost of certain energy-efficient property or improvements you placed in service in 2010. This property can include high-efficiency heat pumps, air conditioners, & water heaters. It also may include energy-efficient windows, doors, insulation materials, and certain roofs. The credit has expanded to include certain asphalt roofs and stoves that burn biomass fuel.
Limitation. The total amount of credit you can claim is limited to $1,500.
Residential energy efficient property credit. Beginning in 2009, there is no limitation on the credit amount for qualified solar electric property costs, qualified solar water heating property costs, qualified small wind energy property costs, & qualified geothermal heat pump property costs. The limitation on the credit amount for qualified fuel cell property costs remains the same.
The limit on Itemized deductions expired in 2010. However, under current law, the limit on itemized deductions will resume in 2011 at pre-2006 levels.
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