2010 Tax Filing Time – Tips & Things to Remember
Although we know it’s coming, tax season seems to sneak upon us each year. To make things more confusing, government regulations change on a regular basis, so it pays to be aware and mindful of those changes. Below are a few tips on things to remember while filing your 2010 tax return:
- Due to observing Emancipation Day on April 15th, the 2010 Federal Income Tax return filing deadline is April 18, 2011. However, some state filing deadlines will remain April 15th, so be sure to check your state deadline.
- If you took advantage of the 2008 First-time Homebuyer Credit, it’s now time to pay it back! The Credit was simply an interest free loan and taxpayers must begin paying it back with their 2010 tax returns. In general, the repayment schedule is $500 a year for 15 years. If the taxpayer no longer lives in the house, then the credit must be repaid in full with the next tax return. (Tax payers who claimed the credit in 2009 or 2010 will not have to repay it unless the house is sold or no longer their primary residence within 3 years of purchase.)
- Don’t forget to deduct the charitable noncash contributions made in 2010. Starting with 2007 returns, the law has required a receipt or some sort of written confirmation for all charitable donations.
- Points on refinancing – with interest rates remaining low over the past few years, many homes have been refinanced. If you paid points to refinance, you can deduct the points on a monthly basis over the life of your mortgage.
- Old points on refinancing – all unamortized points on an old refinance are deducted in the year of a new refinance.
- Review your Roth IRA conversions. If you converted a traditional IRA to a Roth in 2010, you can “re-characterize” the account and change it back to a regular IRA and not incur the tax liability for the conversion. The deadline for this re-characterizing is the due date of your 2010 tax return, which can be extended until October.
- Were you one of the 75% of tax payers that made an interest free loan to the IRS (last year’s average refund was $3,000)? For 2011 withholding, review your situation and consider filing a new W-4 to adjust your withholding and get more of your money back each paycheck, rather than a tax refund which is an interest free loan to the government.