Personal Income Taxes
- Standard Deductions - (Married $11,400, Married/Separately $5,700, Single $5,700, and Head of Household from $8,350 to $8,400).
- Personal Exemption went from $3,500 to $3,650.
- Earned Income Credit limits this year are: (One Qualifying Child earning limit is $35,535, Two Qualifying Children earning limit is $40,363, and Three or more Qualifying Children earning limit is $43,352).
- Option Split Refunds ? Up to three accounts can be deposited into.
- Real property taxes deduction even if you do not itemize
- Alternative Minimum Tax (AMT) Relief Act includes $100 billion in tax breaks for businesses and the middle class.
- New First-Time Homebuyers Tax Credit Please asks questions on your situation if you bought a New Home in 2009 or purchase agreement before May 1st 2010.
- Stricter Regulations for a Qualifying Child are still in place.
- Restrictions on Charitable Contributions (All Cash contributions must have bank record or a receipt and all clothing and household items have to be in good condition or better).
- Retirement Plans ? Please ask questions on your situation (There are Many Changes)
- IRA Deductions has stayed the same.
- Capital Gains - all net long-term gains are subject to a max of 15% rate. If you are in the lower two tax brackets then the 5% rate has been reduced to 0%. Remember, any capital losses in excess of $3000 can be carried back 2 years and then carried forward.
- Alternative Fuel and Hybrid Vehicle Credit (Please call to see if your vehicle qualifies).
- Military Tax Relief - Multiple deductions?.
- There are also many new and expired credits (please call for further information if needed).
- Remember to ask questions if any of the following apply to you; Casualty Loss, Cobra Insurance, Net Operating Loss, and Non-business Energy Property.
Tax Organizational Tips
- Medical and Dental expenses if they do not effect your federal return due to the 7.5% AGI limit they will effect your Arizona state tax return. If you can?t find all your receipts you can always get a printout from your doctor, hospital, and pharmacy.
- Tags and Registration you can go to www.servicearizona.com to get this information.
- Purchased or Sold a Property - land, commercial, residential, or just an asset (auto, equipment, and misc) please bring in your information on the transactions.
Business Income Taxes
- IRS passed the Small Business and Work Opportunity Tax Act of 2007. This act defines and gives further explanation on current tax laws.
- Limit for Social Security portion of Self-employment Tax $106,800.
- 179 Deduction Limits increased from $250,000 to $500,000.
- Standard Mileage Rates (Please bring all supporting documentation) Business Miles: 50¢, Medical & Moving Miles: 16.5¢, and Charitable Miles: 14¢.