Love and Taxes – Tax Filing Date Changed to February 14 For Some Tax Filers

Ahh, love is in the air! Valentine’s Day is just around the corner.  What better way to celebrate than by filing your taxes…

What?!?

No, I don’t seriously expect you to celebrate Valentine’s Day by filing your taxes (unless that’s your thing, then hey, by all means).

Due to late changes in the tax laws at the end of 2010 (the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act Of 2010 enacted Dec. 17), the IRS will be delaying the first day to file taxes for some taxpayers to February 14th, 2011.  The IRS needs extra to update some of their systems to accommodate the tax laws.
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Do You Need to Adjust Your Tax Withholding?

With yet another tax season under way, it is time to evaluate your tax withholding and determine whether or not you should adjust it. There are a number of reasons to consider changing your tax withholding:

Life Changes

Major life changes might mean a necessary change in your withholding.  Marriage, divorce, death of a dependent, and the birth of a child are all life changes that can result in a need to change the number of exemptions that you claim on your W-4.  This change will mean a difference in your withholdings.

You Ended Up with a Big Refund

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More Money in Your Paycheck – The Payroll Tax Cut (Social Security Tax Cut)

In late 2010, Congress and President Obama passed new tax laws that take effect in 2011 (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010).

The Making Work Pay tax credit is gone.

As a result, most people will benefit from a cut in Social Security taxes (also known as Payroll Taxes).

Previously, people paid 6.2% toward Social Security.  Under the new law, people will be paying 4.2%, a reduction of 2% in their Social Security tax withholding rate.

That is good news for many Americans as it essentially means a 2% increase in your paycheck.
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TurboTax Online Tax Software 2010 Review

No Easier, Faster Way to Get Your Biggest Possible Tax Refund – How so?

TurboTax 2010 is all about making things easier and more accurate this year.

They take out the hassle of manually entering your information by automatically filling in:

  • Your earnings and account information from your job, bank or credit union
  • Info from last year’s tax return, even if it was prepared using different software
  • Any income you received in interest, thanks to the integration with Mint.com

Yes, they’re still the GPS for your taxes, guiding you through the entire process. Features include:
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2011 Federal Income Tax Brackets and Marginal Tax Rates

Going into 2011, it was thought that the federal income tax brackets and marginal tax rates were going to change drastically because of the Bush-era tax cuts expiring.

However, they were extended for another two years, so the tax brackets and marginal rates aren’t going to change very much going from 2010 to 2011.

Here we’re going to take a look at each of the Federal Income Tax brackets and marginal tax rates for both single taxpayers and married couples filing jointly, and take a look at what is changing going into 2011.

Note: click here for the 2012 Federal Income Tax Brackets and Marginal Rates.

The lowest marginal tax rate is the 10% bracket.

The range of income covered by this bracket in 2010 was $0 to $8,375, but going into 2011, the upper limit is changed to $8,500.  Similarly, the married couples filing jointly will see a raise from $0-$16,750 to $0-$17,000.  These aren’t very big changes, and won’t change tax amounts for many people by a large amount at all.
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Tax Breaks You Can Still Get in 2010 to Reduce Your Taxable Income

Reduce taxable income with tax breaks.

The year is rapidly drawing to a close, and that means it’s time to really think about what additional breaks you might be eligible for right now. If you are concerned about reducing your tax liability for this year, it’s a good time to see what you qualify for.  The good news is that there is still time to qualify for a number of tax breaks in 2010.  Here are some of the tax moves you can still make:

Hybrid Car Purchase

Reduce taxable income with tax breaks.A tax credit passed in 2006 for the purchase of hybrid vehicles is still in effect — but it will end on December 31, 2010.  If you purchase certain hybrids, you could be eligible for a tax credit.  There are stipulations, though.  The tax credit is only available on the first 60,000 models sold by the manufacturer.  Some manufacturers have sold more than 60,000 units of some hybrid models.  However, there are still some hybrids that haven’t sold out.  FuelEconomy.gov has a page that shows you which models are still eligible for tax credits if you buy before the end of the year.
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It’s Not Too Late to Claim Energy Efficient Home Improvement Tax Credits

Tax credits can help you save on home energy costs

It’s never too late to make some needed improvements to boost the efficiency of your home’s energy usage.  For tax purposes, making a few around-the-house upgrades before the end of the year can contribute to a larger tax refund.

Not only will you be more energy resourceful, but you will save money in the long term, and the IRS will recognize these efforts by rolling out some energy credits to assist you with the costs.

Tax credits can help you save on home energy costsThere are two main types of credits available. The most common credit is money that you can get back for conventional home usage improvements, such as energy efficient windows and doors.  The second type of credit targets alternative energy investments, such as solar or wind powered additions.
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