Year End Tax Tips for 2010
There are a number of steps you can take each year to reduce your taxes. This year, several new tax breaks were introduced to help individuals, families and business owners struggling in the ailing economy. Here are a few you may be eligible to take advantage of when doing your taxes in 2011.
No limit on itemized deductions.
While this may change next year for the $100,000-and-over tax bracket, for 2010 there is no limit on any itemized deductions. Before December 31, pay any charitable contributions, local or state taxes, health-care costs, or anything else you can itemize on your taxes.
Credit those college expenses.
The American opportunity tax credit (which expanded and re-named the Hope credit) can be claimed for tuition and other fees paid by students or their parents. (The credit is phased out at higher income levels.) The maximum amount you can claim has been raised to $2,500 for 2010—a $700 increase. The number of years you can claim this credit has also increased from two years to four post-secondary education years.
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