2010 Tax Prep 

Wayne Harvey

The calendar has been flipped from 2009 to 2010.That means W-2 forms and 1099’s will be showing up in your mailbox at the end of the month, and a trip to get your taxes done will soon follow.There are some changes you should be aware of as you get ready to file before that April 15th deadline, says Sean Thomas of Thomas Tax and Financial Services.”There’s a credit formerly known as the Hope Credit, which is an educational credit for post secondary education that has been modified in a very good way where some of the credit now may qualify as a refundable credit.””If you found yourself receiving unemployment, the first $2400 of your unemployment benefits are not taxable which is a wonderful thing to hear in this economy”The Government has also brought back the Residential Energy Credit, last seen in 2007, which is for improvements made to increase energy efficiency.”The difference is now they are taking thirty percent of the purchase rice and it’s up to a fifteen hundred dollar credit.”But the qualifications for energy efficiency has changed and to update those, Thomas suggests you check out is a change that will catch some off guard. Married couples who both have jobs want to be aware of the Making Work Pay Credit, said Thomas.”The reason being is that the credit is a maximum of eight hundred dollars but what they did earlier in the year was adjust the withholding tables. There, two individuals will now get more out of their paycheck throughout the year but it might exceed that $800, greatly, and if that’s the case, if they are used to getting a refund, it might be far less and if they are used to being right on the bubble then they might end up paying this year.”Thomas said that while many may procrastinate in doing their taxes, you may want to get a jump start instead.”This year with all the changes and things that could potentially impact our tax return, I think it’s very important to get in to see your tax professional early.”