Jan 2010: Tina Polf - 2010 Tax Update
Speaker Highlights
January 27, 2009
Tax Update Presentation to ASWA
Presented by
Tina Polf
Filing Status and Dependents
o Custodial parent is the parent with who the child resides the greater number of nights during the calendar year
o Noncustodial parent should obtain a signed Form 8332 from the custodial spouse.
Attaching a divorce decree may no longer be sufficient.
Income
o Tax-free unemployment benefits up to the first $2,400
o IRS continues to look at gross income reported to make sure all income is reported
o Increased transportation subsidiary for transit to $230
o Enhanced Section 529 college savings plan, qualified education expenses will include expenses for computer equipment and technology, including internet access, in tax years beginning in 2009 and 2010
o First dollars paid for alimony and child support are first applied to child support
IRAs
o Contribution limit for 2009 is $5,000
o For IRA conversions to Roth IRAs in 2010 only, you can either recognize income in 2010 or average it over 2011 and 2012
o Tax-free distributions from IRAs directly to charities up to $100,000 are allowed for 2008 and 2009
Deductions
o Partial property tax deduction allowed for non-itemizers. The lesser of actual amount paid or $500 ($1,000 MFJ)
o Sales tax deduction for new vehicle purchases for non-itemizers. Standard deduction is increased by the sales paid on the first $49,500 of the cost of each new vehicle purchased between February 16, 2009 and January 1, 2010
o New Haiti bill permits cash gifts only from January 12 to February 28, 2010 to be deducted on the 2009 tax return
Credits
o Making Work Pay is the lesser of 6.2% of earned income or $400 ($800 MFJ) for 2009 and 2010. This will be paid by decreased amount of withholding from paychecks. Schedule M is use to calculate credit
o First-Time Home Buyer Tax Credit Revisited, 10% of the purchase price of home, up to $8,000. Must purchase by April 30th and close by June 30th 2010. It also authorized a tax credit of up to $6,500 for qualified repeat home buyers.
o Revised non-business energy property credit for 30% of eligible energy-saving improvements up to $1,500. Be sure to obtain a Manufacture Certification Statement
For more information Contact:
Tina Polf
CPA
Christina A Polf
Evergreen Building, Suite 633
Renton, WA 98057-3218
Phone: 425-226-1500
Fax: 425-228-3881
E-Mail: TinaPolf@aol.com
