Last Update: Wednesday, July 23, 2014

Sweeteners Added to Recession-battling Tax Breaks PDF Print E-mail
Written by CAROLE FELDMAN   
Thursday, 03 February 2011 06:10

This year's tax season will look a lot like last year's, with a few sweeteners added.

Among them: the Making Work Pay tax credit, which put a little extra money in the hands of 95 percent of U.S. taxpayers. Homebuyers and those who installed energy-efficient furnaces, windows and other items in their homes also could benefit, along with college students or their parents, schoolteachers and adoptive parents.

"There's really not much from a change perspective," said Greg Rosica, a tax partner at the Ernst & Young accounting firm.

But new sweeteners include elimination of the phase-out of itemized deductions and personal exemptions for higherincome taxpayers.

Low-income taxpayers benefit from a raise in income limits for the earned income tax credit. Congress in December also approved a patch for the alternative minimum tax that will protect about 20 million middleincome families from an additional tax bill of $3,900 or so.

The late action by Congress on the AMT and other provisions means that taxpayers who itemize deductions, teachers seeking a deduction for out-of-pocket expenses, and those filing for the tuition and fees deduction will have to wait until the Internal Revenue Service updates its systems before filing their returns. Terry Lemons, the IRS' senior spokesman, estimates the delay could last until mid-February.

"We have to be very careful to make sure we have it right," he said.

Tax experts said the delay shouldn't affect taxpayers too much. "The rush of the tax filing season isn't until mid-February to begin with because people don't get all their information together to begin filing,'' Rosica said.

Taxpayers also will have a few extra days to file. Returns aren't due until April 18 because of Emancipation Day, celebrated April 15 in the District of Columbia.

Mark Steber, chief tax officer for Jackson Hewitt, said taxpayers will have to be more vigilant this year because of the lateness of the changes.

As a result, this year, more than ever, is a good time to file electronically, Lemons said. "You're going to get a more accurate return," he said. "You're going to get the latest tax information."

For the 2010 tax year, "economic factors might point to a slightly higher refund percentage," said Bob Meighan, vice president at TurboTax, which makes tax preparation software. He cited continued high unemployment.

Though the jobless rate remains close to 10 percent, the unemployed lost a key tax break. "All unemployment insurance is taxable this year," said Mark Luscombe, principal analyst at CCH, a tax preparation service. For the 2009 tax year, the first $2,400 of unemployment benefits had been excluded.

Another recession-battling tax break not renewed was the deduction for sales and excise taxes on the purchase of a new car. However, Congress did extend the state and local sales tax deduction, which primarily benefits those in areas without state and local income taxes. Deductions reduce the income on which you are taxed. Credits reduce the amount of tax owed and generally are considered more advantageous to the taxpayer.

If you seek professional help on your return, make sure your tax preparer has registered as required with the IRS. Later this year, most tax preparers will have to pass an exam certifying their skills. Certified public accountants and some others are exempt.

"It's setting a standard of excellence for the industry," said Kathy Pickering of the Tax Institute at H&R Block.

All taxpayers can claim a $3,650 per person exemption for themselves, their spouse and each qualified dependent. That's unchanged from last year, as is the standard deduction for married couples filing jointly ($11,400) or singles ($5,700). The standard deduction for heads of households increased slightly, to $8,400.

The capital gains rate remains at a maximum of 15 percent. For those taxed overall at the 10 percent or 15 percent rate, the capital gains rate is 0.

Tax experts urge people to take advantage of all the deductions they are due.

For charitable deductions, people are pretty good at keeping track of cash but not as good when it comes to goods, Luscombe said. They often forget out-of-pocket expenses, including travel or transportation.

Taxpayers who are at least 701/2 years old could make a donation to a charity direct from their individual retirement accounts without paying taxes on the amount. But there's no double-dipping. They cannot also claim the amount as a charitable donation.

And in another change affecting retirement accounts, people could convert their traditional IRAs to Roth retirement accounts regardless of income. Taxpayers had the option of counting the amount of the conversion as taxable income in 2010 or deferring it over two years, 2011 and 2012.

During 2010, the vast majority of taxpayers benefited from the Making Work Pay tax credit, aimed at combating the recession. There were income limits, however, and taxpayers will have to file Schedule M to claim the credit, which is up to $400 for singles or $800 for married couples filing jointly. Since payroll withholding was adjusted so you could get the immediate benefit of the credit, you could find yourself owing money if both spouses worked or if you have more than one job.

The homebuyers' credit also continued - for part of the year. If you were a first-time homebuyer and bought your home before May 1, 2010, you may qualify for a maximum $8,000 credit. There's a separate credit, too, for long-time homeowners, up to $6,500. These, too, phase out at higher income levels, and the price of the home may not be over $800,000. You also must have used the home as your primary residence for at least three years, or you'll have to repay the money.

Again this year, there's added documentation required, such as the HUD-1 settlement statement. As a result, people claiming the credit will not be able to file electronically.

Those who bought homes in 2008 and claimed the credit owe the government some money. That credit actually was an interest-free loan and must be paid back over 15 years. Those who took the maximum credit, $7,500, will have to add $500 to their taxes due. "It might catch people unaware,'' said Barbara Weltman, author of tax books for J.K. Lasser.

You'll also have to file a paper return if you claim the expanded adoption credit. The maximum is $13,170 for each child, up from $12,150 in 2009.

College students or their parents may qualify for the American Opportunity Credit, worth $2,500 toward tuition and other qualified higher education costs. Students must be attending school at least halftime. Congress also extended the higher education tuition and fees deduction.

And a final word of advice: If you're waiting for forms to arrive in the mail, don't. The IRS decided not to mail them this year, a cost-saving measure that reflects the reality that increasing numbers of people who are filing electronically. Finances THURSDAY, FEBRUARY 3, 2011 San Fernando Valley Sun 18 Sweeteners Added to Recession-battling Tax Breaks


Team members care for thousands of the region's sickest children with heart conditions, including fetuses, newborns, infants, children, adolescents, and adult, long-term patients with pediatric cardiovascular conditions. At Children's families experience coordinated, next-generation care, delivered by a compassionate, multidisciplinary team of leaders in the pediatric cardiology field. One of the largest pediatric cardiovascular programs in the region. Studies have shown that high volumes are associated with high quality and better outcomes, because experience is a major factor in quality of care. Wort was traditionally prescribed in parts of Europe for depression (in addition to use as a general-purpose tea), and Chinese medicine developed elaborate lists of herbs and preparations. With the scientific revolution in Europe and the United States, the use of traditional herbal remedies fell out of favor with the mainstream medical establishment, although a few people continued to use and maintain knowledge of traditional European herblore. In the early 20th century, scientists began reassessing this rejection of traditional herbs in medicine. Vorzüge eines intakten und lebendigen Gemeinschaftslebens bewahren. Dafür sorgen nicht zuletzt gut 120 lokale Vereine. Als wichtiger Faktor im Kulturleben haben sich die zahlreichen Museen und einige Kunstgalerien erwiesen. Descriptive and quantitative transcriptome analyses are important for interpreting the functional elements of the genome and revealing the molecular constituents of cells and tissues. It is known that sperm function can be affected by ASG proteins, including the processes of capacitation and the acrosome reaction, as well as canadian pharmacy accutane sperm motility, DNA integrity and interaction with the oocyte. BSPs (bovine seminal plasma protein, unigene 64,588 and unigene 69,768), fertilin (unigene 17,270 and unigene 27,136), ACE (Angiotensin converting enzyme, unigene 7,164 and unigene 21,069), GPX5 (glutathione peroxidase, epididymal secretory glutathione peroxidase, unigene15860), Spermadhesin-1 (Acidic seminal fluid protein, aSFP). The reproduction-related transcripts identified in the ASG and testis transcritptomes in E. This interaction of PDC-109 with the sperm cell membrane results in an efflux of cholesterol and choline phospholipids, that appears to be important for capacitation. The main changes in spermatozoa that occur during epididymal maturation are the ability to move, recognize and bind to the ZP, and to fuse with the plasma membrane of the oocyte.. Oct 2004, Adelaide, Australia. Ziaian T, Augostinos, M. Relationship Between Acculturation and Mental Well-being Among Young Persian Women Living in Australia. Paper presented at the Educational Research conference, 18th November 2004, Adelaide, Australia. Ziaian T, Stress Management: an introduction of holistic coping strategies. A Four day Course for the higher degree students. Targeted molecular therapy for advanced epithelial ovarian cancer. Minimally invasive surgery for gynecological cancer. Pharmaceutical Sciences from Shizuoka College of Pharmacy (1976, Japan). He has completed his B. Prophylactic removal of nevi without clinically worrisome characteristics is not recommended. The reasons for this are practical: many individuals in these families have a large number of nevi, and complete removal of them all is not feasible, since new atypical nevi continue to develop. In addition, individuals with increased susceptibility to melanoma may have cancer arise de novo, without a precursor lesion such as a nevus. The disadvantages of screening include the limitations of available noninvasive testing methods and the risks associated with invasive screening procedures. ERCP is the gold standard for identifying early cancers and precancerous lesions in the pancreas..