Wednesday, February 2, 2011
Money Monday: Tax Time 2010
It's that time of year again, people are getting ready to file their tax returns for 2010, but there is good news, some of the changes this year are sure to put money back in your pocket.
WSVN -- Martin Shane is busy gathering his tax information and records.
Martin Shane: "I look for pretty big envelopes cause that's where the returns usually come, so I'm out there waiting to see what I'm going to be getting, what I'm going to be surprised with that day."
His accountant Ed Sachs says now is the time to get ready.
Ed Sachs: "They need to make sure that they've got all their records together, that they've received all their W-2s, their 1099's for any interest or dividends they may have collected during the year."
This year, you have a couple of extra days to file. Instead of having to have your return in the mail Friday April 15th, you'll have until Monday April 18th.
There are also some changes in tax laws:
If you were a first-time homebuyer in 2010 you get a bonus a tax credit of up to $8,000. Existing homebuyers get a credit too up to $6,500 dollars.
If you have a kid in college there's a tax credit for you up to $2,500 per student.
Parents will also be able to deduct up to $4,000 in tuition and fees.
Teachers get a break this year ,a $250 deduction for any classroom expenses they are not reimbursed for, and if you made energy saving home improvements you can get a credit of up to $1,500.
Ed Sachs: "They need to make sure they have the documentation that proves that whatever work they did qualified under the tax credits."
So get your forms together and don't forget, help is out there if you need it.
Ed Sachs: "For individuals making $49,000 or less they can actually go to volunteer income tax assistant program and they will assist in helping them prepare that tax return free of charge."
FOR MORE INFORMATION:
IRS Tax Info for Individuals
IRS Basic Info
IRS Free Tax Help