Income Tax Changes for 2011 (2010 Filing Year)

Standard Deduction Increased The standard deduction for those not filing Schedule A has increased. First Time Homebuyer Credit You may be able to claim this credit if you entered a written binding contract before May 1st, 2010 to buy the home before July 1, 2010 and completed the purchase before October 1, 2010. Repayment on First Time Homebuyer Credit If you claimed the First Time Homebuyer Credit for a home you bought in 2008, you generally must begin repaying it on your 2010 Tax Return. Roth IRA's Beginning in 2010, you can make a qualified rollover contribution to a Roth IRA regardless of the amount of your Modified Adjusted Gross Income. Self-Employed Health Insurance Deduction If you were self-employed and paid health insurance premiums, you may be able to include with your self-employed health insurance deduction. Standard Mileage Rate for Deductible Mileage For 2010, the standard mileage rates are: • 50 cents a mile for business use • 16.5 cents per mile for medical use • 16.5 cents per mile for moving expenses • And 14 cents a mile for charitable use Personal Casualty and Theft Loss Limit Each personal casualty or theft loss is limited to the excess of the loss over $100. This amount is different from the $500 limit for 2009. Visit the Taxes PhD website for more.