Wednesday, January 12, 2011

Tax Relief Act of 2010 Information

You need to wait to file your 2010 income tax if you are impacted by any of the tax deductions or credits renewed by the Tax Relief Act of 2010, enacted December 17th: The following schedules are changing:

  • Form 1040, Schedule A, itemized deductions;

  • Form 8917, Tuition and Fees deduction;

  • Form 1040, line 23, Educator expenses;

  • Form 4684, Casualties and Thefts;

  • Form 5405, First time homebuyer credit & Repayment of credit;

There are a few other less ‘popular’ credits too. The IRS expects to have the forms updated and ready for processing about mid-February.

Another possible delay in filing your tax return this year; the Form 1099-DIV has been changed to report both ‘ordinary’ and ‘qualified’, and the Form 1099-INT now reports tax-exempt interest. Mutual Fund investments are the most likely to be incorrect since the information comes from several issuers, and then is broken out for the different types. Be sure to verify these Forms against your own records.

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