Jeff Christian News

2010 Changes Offer Expanded Tax Benefits Continued from previous page ..

to the following levels:

$72,450 for a married couple filing a joint return and qualifying widows and widowers, up from $70,950 in 2009.

$36,225 for a married person filing separately, up from $35,475.

$47,450 for singles and heads of household, up from $46,700.

Tax Breaks Extended - several tax breaks that expired at the end of 2009 were renewed and can be claimed on 2010 returns. They include:

State and local general sales tax deduction, primarily benefiting people living in areas without state and local income taxes. Claim on Schedule A.

Higher education tuition and fees deduction benefiting parents and students. Claim on Form 8917.

Educator expense deduction for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250, Claim on Form 1040, Line 23 or Form 1040A Line 16.

Tax Changes for Small Businesses -- During 2010, new laws, such as the Affordable Care Act and the Small Business Jobs Act of 2010, created or expanded deductions and credits that small businesses and self-employed individuals should consider when completing their tax returns and making business decisions in 2011. These changes include: (1) the health insurance deduction now reduces self employment tax, (2) In general, the Small Business Health Care Tax Credit is available to small employers that pay at least half of the premiums for single health insurance coverage for their employees. (3) For tax years beginning in 2010 and 2011, small businesses can expense up to $500,000 of the first $2 million of certain business property placed in service during the year.