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Here Is The Taxpayer-Friendly List

February 1, 2011

On December 17, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the 2010 Tax Relief Act) was signed into law. It includes many taxpayer-friendly provisions for both individuals and business. Here are the changes that will affect most taxpayers.

  • Lower Tax Rates Extended through 2012
  • Marriage Penalty Relief Extended through 2012.
  • Social Security Tax Reduction for 2011 Only.
  • Personal Exemption and Itemized Deduction Phase-outs Repealed through 2012.
  • Alternative Minimum Tax (AMT) Patch for 2010 and 2011.
  • 100% Gain Exclusion for Qualified Small Business Corporation Stock Extended to Cover Shares Issued in 2011.
  • IRA Qualified Charitable Contributions Extended through 2011.
  • Bigger Child Credit Extended through 2012.
  • American Opportunity Education Credit Extended through 2012.
  • College Tuition Deduction Extended through 2011.
  • More Generous Student Loan Interest Deduction Rules Extended through 2012.
  • Employer Education Assistance Plans Extended through 2012.
  • Option to Deduct State and Local Sales Taxes Extended through 2011.
  • More Generous Earned Income Tax Credit Rules Extended through 2012.
  • More generous Dependent Care Tax Credit Rules Extended through 2012.
  • Smaller Tax Credit for 2011 Energy-efficient Home Improvements.
  • $250 Deduction for K-12 Educators Extended through 2011.

So many of these changes do affect you. I was preparing a return for a client that was new to Gunwel last week, when I asked him if he had taken the “Making Work Pay Credit” last year (he had done his own return and did not know about the credit) and thus was allowed an extra $400. added to his refund. He was very excited, as was I, simply because we were able to get him a larger refund and educate him a bit on additional credits the government offers. Let GAI ( prepare your taxes. We have 25 years of tax experience and look forward to working with you. Give us a call at 212-979-6830 or stop by for a visit. See you soon!.

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