The tax season is already here, and that means you’ll need to get ready to file those income taxes for 2010. It is always a good idea that you take note of any change that could affect you and the way that you do your taxes. The following are some of the differences that you are going to encounter this year.
If you pay into FICA, which is Medicare and Social Security, you will see that you have a tax break of 2% throughout the year in your checks. Those who don’t pay into the system aren’t going to benefit from this tax break. Another change that you will notice is in the amount that you are able to deduct. While the amount stays the same for single, married, and head of household status, new deductions for seniors and those who are legally blind are now $1450 for single taxpayers and $1150 for married taxpayers filing jointly.
The personal exemption amount rose from $3650 to $3700. The brackets for tax rates and the percentage did not change and stay the same as they were in past years. They will change though if the tax breaks go away or change in the future.
If you are an employer, a change that you will want to note is in health care benefits reporting. Employers must now report the healthcare benefits for their employees.
A simple change that you might overlook can cause some serious problems for you down the road. If you are worried that you aren’t going to be able to do your taxes properly this year or any other, it is in your best interest to hire a tax professional to help.