2010 Tax Update

Just went to a 2 day tax update seminar and here is some of the info I found out:

*As of right now, effective 1/1/12, all businesses must give 1099-MISC’s to all goods and services vendors that they pay a total of $600 in aggregate (Not just one single payment, in total), if greater than 250 vendors should be able to file electronically.

*Effective 1/1/11, if you are a passive owner of rental property (don’t do real estate as a main business), you must give 1099-MISC to all goods and service vendors you pay in aggregate $600 (Not just one single payment, in total)

*For New York State, you can no longer opt out of e-filing.  If your return is e-filiable, then you MUST e-file.

*No more $250 educator deduction for K-12 for 2010.

*No more extra $1,000 added to standard deduction if you pay real estate taxes for 2010.

*Making work pay credit is back for 2010 ($400 single, $800 married)

*No hope credit for 2010 but still have lifetime learning and American Opportunities credit for 2010.

*No tuition and fees deduction for 2010.

*Possibility that marriage penalty might be back for married filing jointly 2011.

*First time homebuyer credit done in 2010.  Must have agreement by 4/30/10 and closed by 9/30/10.

*2010 is last year of energy credit, installation of energy equipment still in effect through 2016 (ex. Solar energy, wind energy, geothermal heat pump, fuel cell property).