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Notable New Tax Laws for Your 2010 Taxes

Notable New Tax Laws for Your 2010 Taxes

As usual, there are quite a few changes in the tax laws to take into account this tax season. These changes can greatly affect how much money goes into your pocket after you finish filing. Here is a list of some of the major ones to think about as you fill out your 2010 federal tax forms.

The HealthCare Bill
Health care has been the subject of much debate in this country. What went through this past March has loads of changes in taxes for both businesses and individuals on their 2010 federal tax forms. While it has many changes in the future, two are in effect right now.

The first thing you should think about is small employers with 25 or fewer employees can claim up to a 35% credit on their tax forms for providing health insurance for their employees. The other active part of the bill allows parents with children 27 and under to cover them in their employer-provided health plans.

Look for the majority of the changes from the bill to go into play on your 2012 federal tax forms.

The HIRE Act also went through this past March. It provides many benefits on 2010 federal tax forms for employers who hire certain unemployed workers. This was to help stimulate the economy and lower the unemployment rate.

The first exemption provides employers with an exemption on their tax forms from the employer’s 6.2% share of social security tax on wages paid. This is only good from March through December for those specific employees. It is known as the payroll tax exemption.

The second exemption on 2010 federal tax forms is for those certain employees that stick around for 52 consecutive weeks. It provides employers with a general business tax credit known as the new hire retention credit. This credit is for 6.2% of wages paid to the employee over that 52 week period. However, the max is $1,000.

Alternative Minimum Tax Amounts

The Alternative Minimum Tax exemptions for federal tax forms have been decreased slightly for the 2010 tax season. Currently, they are as follows.

  • For single and head of household: $33,750
  • For married but filing separately: $22,500
  • For married filing jointly: $45,000

Unemployment Benefits
In past years you could exclude amounts on your tax forms from your unemployment compensation received. This included up to $2,400 in 2009. In 2010 this has changed. There are now no tax breaks for unemployment on federal tax forms.

Higher Education Deduction
Also in past years, taxpayers could take deductions for college tuition and expenses on tax forms. For example, in 2009 taxpayers with an adjusted gross income of $65,000 or less could get up to $4,000 in higher education deduction.

As it stands now, there is no such deduction on federal tax forms for 2010. Keep this in mind as it could greatly change your refund or the amount you owe this tax season.

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