The Student News Site of North Carolina A&T State University

The A&T Register

The Student News Site of North Carolina A&T State University

The A&T Register

The Student News Site of North Carolina A&T State University

The A&T Register

Credit and deduction tips for 2010 income tax returns

Tax laws change so much and so quickly that it can be very difficult for the average taxpayer to keep up with them. Yet when it comes to your income tax return, keeping up with the latest news on credits and deductions could mean the difference between owing a bundle and getting a refund.

The tax experts at H&R Block offer some tips on what’s new in tax laws for 2010, and what’s continuing in terms of credits and deductions from 2009:

* Your 2010 tax return is your last chance to claim the “Making Work Pay Credit.” It’s for anyone who earned income from a job. Individuals can claim up to 6.2 percent of their earned income, or $400, whichever is less. Married couples filing jointly can get up to an $800 credit.

* First-time homebuyers who signed a contract to buy a house no later than April 30, 2010, and closed on that house by Sept. 30, 2010, may be eligible for a $4,000 credit, as long as the original closing date for the house was before June 30, 2010.

* If you made energy-efficient home improvements in 2010, you may be able to claim a credit.

* The child tax credit has increased for some people.

* Mileage deductions are now 50 cents per mile for using your personal vehicle for business, and 16.5 cents per mile if you had to travel for medical care.

* If you experienced personal casualty or theft losses of more than $100 you can deduct a percentage of those losses when you file taxes. To calculate your deduction, subtract $100 from the total of each loss, add those adjusted totals together, and subtract 10 percent of your adjusted gross income from that total.

Before filing taxes, it may make sense to consult with a professional tax return preparer, especially if you will claim a lot of deductions, or think you may be eligible for some tax credits. You can learn more at www.hrblock.com.

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