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Client Letter |
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Big changes make 2010 a watershed year for tax planning |
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Your 2010 Tax Reminders |
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Homebuyer credit extended and expanded in recent law |
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Your 2010 Tax Numbers |
New Year 2010
Your 2010 Tax Reminders
Filing deadlines
The filing deadline for 2009 tax returns for individuals and partnerships is April 15, 2010. The deadline for calendar-year corporations is March 15, 2010. Extension requests can be filed, giving individuals and corporations an additional six months to file (but not to pay taxes owed). Partnerships can request an additional five months to file.
Check your children's income
Your children may be required to file a 2009 income tax return, too. Generally, a 2009 return is required if the child had wages of more than $5,700, self-employment earnings over $400, or investment income (such as dividends, interest, or capital gains) over $950. If your child had both earned and investment income, other thresholds apply. Also, if your child is due a refund, a return must be filed to get it.
Charity recordkeeping
The law has strict recordkeeping requirements for deducting charitable contributions. For cash contributions under $250, you must have a bank record such as a cancelled check, credit card record, or receipt from the charity. For donations of $250 or more, a receipt from the charity must be obtained before filing your return.
Deduction reminders
With the ever-changing tax law, it's easy to lose track of what's deductible from one year to the next. Don't overlook these deductions available for your 2009 return:
- Sales tax paid on up to $49,500 of the purchase price for a new vehicle.
- Choice of deducting sales taxes paid in 2009 or state and local income taxes paid.
- Educator's deduction of up to $250 for classroom supplies purchased.
- Deduction for college tuition and fees.
- Additional standard deduction of up to $500 ($1,000 for couples) for real estate taxes paid.
Various restrictions and income limits usually apply.
IRA contributions
Make contributions as early in 2010 as you can. If you didn't reach the 2009 contribution maximum last year, designate 2010 contributions as being for 2009 until you reach the dollar limit or April 15. Then you can deduct these contributions on your 2009 return for a quicker tax benefit.
Business tax breaks
Be sure to take advantage of the various 2009 tax breaks available for your business: the $250,000 expensing option for the purchase of new or used business equipment; 50% bonus depreciation for new equipment purchases; 15-year depreciation for qualified leasehold, restaurant, and retail improvements; 65% subsidy for payment of COBRA health premiums for former employees;
and expanded carryback period for 2008 and 2009 net operating losses.