IRS tips for 2010 Tax season – What’s new for this year
“This is too difficult for a mathematician. It takes a philosopher.” — Albert Einstein [on filing tax returns]
It seems that many San Diegans share a similar view when it comes to tax season.
When asked how taxes make her feel, La Jolla local Racquel De Guzman, who files her own taxes, responded, “I help do taxes every year. It’s a very stressful time for everyone I know.”
Just like clockwork, we receive the dreaded W-2’s and 1099’s at the end of January, thus igniting the beginning of tax season. It’s a season that is unpleasant for anyone, so here at the Entertainer we want to provide you with some helpful, easy-to-understand information we have compiled.
New federal and state tax breaks are available to help alleviate this year’s tax season.
What’s New for this year:
(1) Making Work Pay Credit of up to $400 ($800 if married filing jointly)
(2) American Opportunity Credit of up to $2,500 per eligible student
(3) Sales Tax Deduction for New Motor Vehicle purchased after Feb. 16, 2009
(4) First-time Homebuyer Credit increases to as much as $8,000 ($4,000 if married filing separately)
Additionally, there have been several Tax Law Changes. Check to see if any of them apply to you before filing your return.
With all the technicalities and complications involved with taxes, be sure to avoid the common mistakes people make.
“Sometimes people don’t read, or they claim someone as a dependent when they’re not entitled to,” Sally, a Tax Pro from Clairemont’s H&R Block, said when asked about the mistakes people often make when filing their tax returns. “We see some odd things here—not checking their figures, and a lot of people enter the wrong social security number.”
Know what to avoid by checking out the “Five Stupidest Tax Mistakes People Make”.
The most important deadline to remember is April 15th—you have until this day to file your return or to file an extension (an extension to file your return, not an extension to pay).
For an extensive list of tax tips available at the IRS website, click here.
Also, H&R Block is currently offering a $68 special to do simple federal and state tax returns.
Good luck with this year’s tax season, San Diego.