Posted on

How to Lower Your 2010 Taxes

There’s still time before October 17 to save on your 2010 taxes

With the October 17 deadline for 2010 taxes less a week away, you may be wondering what, if anything, you can still do at this point to lower your 2010 taxes. Well, rest assured, there are a few more steps you can take to minimize the amount you fork out to Uncle Sam next week.

Accelerate Your Deduction for Equipment Purchases:

If you are self-employed and purchased equipment, such as computers, software, or furniture, you can deduct these costs when filing 2010 taxes. Normally they are spread out over several years, but if you really want to lower your 2010 taxes, you can opt to accelerate the deduction and accrue all of the benefits this year.

You can accelerate the deduction for these purchases through bonus depreciation by taking a Section 179 deduction. Doing so could mean both lower income taxes and lower self-employment taxes. Just note that while such an acceleration could very well mean lower taxes for 2010, it will also mean a relatively higher tax burden over the next few years. Continue reading “How to Lower Your 2010 Taxes”

Posted on

The Deadline to File Taxes for 2010 is Fast Approaching

If you requested an extension, make sure to file your 2010 taxes before the October 17 deadline

Attention! Tax deadline approaching! If you’re one of the people who requested a six month extension way back in April to file your individual 2010 tax return, then Monday, October 17, 2011 is the deadline for filing federal income tax online.

2011 has been the year of delayed tax deadlines. Thanks to the special District of Columbia holiday Emancipation Day, the regular deadline to file taxes 2010 was pushed back from April 15 to April 18. And now the deadline for extension filers is pushed back as well. Normally the IRS gives you until October 15, but since this year the 15th happens to fall on a Saturday, you’ve got until Monday the 17th.

Even though you’ve got a few extra days to prepare those returns, don’t let the delayed deadline lull you into procrastination. The October 17 income tax deadline is right around the corner, only a month away in fact. If you don’t want to get caught in a rush at the last minute, now is the time to get your paperwork in order and start preparing your return. Continue reading “The Deadline to File Taxes for 2010 is Fast Approaching”

Posted on

2010 Itemized Deductions Approved For E-File Tax Returns

Taxpayers filing 2010 tax returns no longer need to wait to claim their 2010 itemized deductions. As of February 14, taxpayers who itemize their Federal tax deductions on Schedule A, or plan to take certain recently extended deductions specified below, may now electronically file a tax return claiming all Federal tax deductions which they are eligible for. Rapid Filing Services is now E-Filing all 2010 tax returns including itemized deductions which have been submitted to us previously, and we invite our customers to submit any new tax returns including itemized deductions.

Due to the December 17th enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Small Business Job Creation Act of 2010, the IRS required additional time to update the appropriate forms and reprogram its computer systems to handle specific items. The delays caused by this change took from the start of the tax filing season until mid-February, but they have now been resolved and the IRS’ systems are updated to handle the late changes to 2010 itemized deductions.

Notably, Form 1040 Schedule A has been refreshed to reflect the extension of the state and local general sales deduction. In addition, the state and local tax tables used in the calculation of the deduction have also been updated.

Taxpayers affected by the delay, in addition to those itemizing on Schedule A, were:

  1. Filers claiming the higher education tuition and fees deduction as listed on Form 8917.
  2. Educators claiming the $250 deduction for elementary and secondary school expenses on classroom supplies following the reactivation of the 2010 Tax Relief Act.
  3. Taxpayers taking the allowance for tax free distribution from their individual retirement plan for charitable purposes.
  4. Those claiming casualty or theft losses on Form 4686.
  5. Filers who take the General Business Credit using Form 3800.
  6. Those opting for the first time homebuyer credit on Form 5405.
  7. Taxpayers claiming the alcohol and cellulosic biofuel fuels credit on Form 6478.
  8. Those filing Form 8834 for the qualified plug-in electric vehicle credit.
  9. Filers taking the alternative motor vehicle credit using Form 8910.
  10. Taxpayers claiming the qualified plug in electric drivemotor vehicle credit on Form 8936.

Therefore, if your tax return included any of the above, you may now electronically file without worrying about further delays. If you already filed a tax return through Rapid Filing Services, and it included 2010 itemized deductions or any other items listed above, you may rest assured that your tax return was E-Filed immediately when the Schedule A form became available for E-Filing. If you still need to file your 2010 tax return, you may now do so confident that all the deductions you want to claim will be available, ensuring that you receive the best tax refund.