Tax Tips for the 2010 Filing Season

Tax Tips are brought to you by EZ Taxes.

Steve Roche, owner, has over 35 years of tax experience and has helped Southeast Financial members file their returns for nine years.* To make an appointment with Steve, call 615-352-1500 or email imaketaxesez4u@aol.com and schedule an appointment to meet with him at any Nashville-area branch location that’s convenient for you. Be sure to mention your member discount!

How soon should I file?

Generally, you should wait until February to file your tax return because employers, banks, investment companies, etc., have until the end of January to send out W-2s, 1098s, 1099s, etc. Every year I speak to at least one client who filed in January, only to receive an additional W-2, 1098 or 1099 in February. The additional time and expense they incur filing an amended tax return to include the additional income could have been easily avoided by waiting until February to file.

How much will I be reimbursed for mileage expenses?

The mileage reimbursement rates changed in 2010. The rate for business travel was decreased to 50¢ per mile. The medical and moving mileage reimbursement rate also decreased to 16.5¢. The mileage rate for charity remained steady at 14¢ per mile.

There's still time to save!

If your employer doesn't offer a 401k, you can fund your 2010 IRA contribution until April 15, 2011. If you have earned income and your spouse doesn't work or their employer doesn't offer a 401k, you can fund a 2010 IRA for him/her as well until April 15th.

In 2010, the amount of earned income that can be contributed to a traditional IRA that is not subject to taxation remains steady at $5,000 for those age 49 and under and $6,000 for those age 50 and above. If you have any questions about the guidelines for deducting IRA contributions, call EZ Taxes at 615-352-1500.

There's still time for some to take advantage of the First-Time Homebuyer Credit.

Taxpayers who had a binding contract to purchase a home before May 1, 2010 and closed on the home before July 1, 2010 are eligible for the credit.