2010 Changes to Common Tax Forms

Though we all wish the tax forms we use to figure out our taxes wouldn’t change, that often isn’t the case. Many of the tax forms we all use every year have changes that must be taken into account. This includes correcting errors that were originally included in previous versions of 2010 tax forms. Filing for 2010 is no different. Here are some of the changes you can look forward to this tax season.

Form 1040, Schedule E
The Schedule E 2010 tax forms are for reporting income or loss from certain areas. They include:

• rental properties
• royalties
• partnerships
• S corporations
• Estates
• Trusts
• Residual Interests in REMICs

If you downloaded these 2010 tax forms before January 4, there is an error. Look on page E-4, Line 2, middle column. The sentence at the end of the second paragraph should be deleted. The deleted sentence is ‘If you do not itemize, you can increase your standard deduction by certain state or local real estate taxes.’

Form 2441
This set of 2010 tax forms is for reporting child and/or dependent care expenses. If you downloaded it before January 21^st, there is an error on the instructions for these tax forms.

Look on page 4, first column, line 1 of the Credit Limit Worksheet tax forms. This line should read, ‘Enter the amount from Form 1040, line 46; Form 1040A, line 28; or Form 1040NR, line 44.’

Publication 17
A big change occurred with the Publication 17 tax forms. This is the tax guide for individuals to use when knowing what to deduct on their 2010 tax forms. When it went to print, Congress was considering whether to extend certain tax benefits. Some were extended and some were not.

Here is a list of benefits that were extended. Be sure to make a note of these for your 2010 tax forms.

• Deduction for educator expenses in figuring adjusted gross income (AGI)
• Tuition and fees deduction in figuring AGI
• Deduction for state and local general sales taxes
• First-time homebuyer credit (District of Columbia only)
• Exclusion from income of qualified charitable distributions made from IRA accounts
• Special deduction limit for qualified conservation contributions
• Special rules for donations of food inventory
• Allowance of certain credits against the alternative minimum tax
• Credit for child and dependent care expenses
• Credit for nonbusiness energy property
• Credit for the elderly or the disabled
• Lifetime earning credit
• Mortgage interest credit
• District of Columbia first-time homebuyer credit

Some other provisions, such as the government retiree credit and decreased estimated tax payments for some small businesses, have not been extended.

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