Other than extending unemployment for 13 months, the following tax programs were cut until the tax law was passed in December 2010, but were recovered at that time. They are now effective for the entire 2010 tax year as well as 2011:
- Educator Expense Deduction of $250
- State Sales Tax (an itemized deduction) instead of State Income Tax (which Texas does not have)
- Higher Education Tuition and Fees Deduction
Taxpayers itemizing or using the 3 tax deductions above will not be able to file their tax return for 2010 until the IRS makes an announcement sometime in mid-February.
Other minor changes went into effect but there is one major change for 2011 only:
Social Security deduction for employees portion will be reduced by 2 percentage points without affecting your future Social Security payout. This does not affect the Medicare payroll deduction.
Furthermore, the IRS is now allowing self-employed individuals to deduct their health insurance directly from their income. This change could potentially reduce your tax debt and provide a healthy tax refund this year.
Keep in mind, these tax law and tax code changes require professional assistance. Taxpayers sometimes make the mistake of choosing the local quickie tax refund service on the corner. It’s always important to do your due diligence when selecting a so called tax specialist to prepare your income tax return. Are they accredited by the Better Business Bureau? If so, what is their member rating? How long have they been in business?
Jay Allen Finn, CPA not only has 30 years in the tax business, but as a former IRS agent, he is well aware of many tax problems that individuals encounter and will fight the IRS for all his tax clients. There’s a reason Jay Allen Finn has an A+ member rating with the BBB – he treats all IRS tax problems with integrity and will go the extra mile to provide tax relief to his valued clients.
If you would like more information on this year’s tax credit and tax code changes, or if you require any tax help at all, feel free to contact Mr Finn. Located in Houston, Texas, Jay Allen is a respected, reputable local CPA with the best tax knowledge to handle your IRS taxes.
