HIGHLIGHTS FOR 2010:

 

 

 

 

 

 

 

 

2.  Adoption credits increased and are now refundable.  If you have an adoption credit carryover from prior years, it is now                           

     refundable.

 

3.  Energy Credit for 30% of qualified expenditures (2010 is the last year).  Insulation, windows, exterior doors, central air & furnaces               

     may all qualify.

 

4.  Did you purchase your first home in 2010?  You may qualify for the First Time Homebuyers Credit of up to $8,000 if purchased by                

    10/01/10.  Did you claim a first time homebuyer credit in 2008?  This will be the first year to begin REPAYING that $7500 credit.

   

5. Several tax laws have passed that have tax implications:  The Affordable Care Act (enacted 3/23/10), Hiring Incentives to Restore

      employment (enacted 3/18/10), The American Recovery and Reinvestment Act (updated 7/6/10) and the Small Business Jobs

      Act (enacted 9/27/10).

 

6.  Beginning January 1, 2011 many employees will see their net income increase!  The Social Security tax will be reduced 2% (from

     6.2% to 4.2%).  This will also effect self-employment tax, which will decrease from 15.3% to 13.3%.  This was a change signed on

     December 17, 2010 and is scheduled to replace the Making Work Pay Credit of $400/$800 for 2011.

 

7. Consumer Alert Worth Noting:  In this day and age of electronic media, the IRS does NOT send taxpayers unsolicited e-mails 

      about their tax accounts, tax situations or personal tax issues.  If you receive such an email although it may appear legitimate,

      it is most likely a scam!

 

8. In these tough economic times we are seeing more penalties, more audits and more adjustments on tax returns.  Please make sure to

      document your income and deductions and that your filings are timely.  Remember most Corporate Tax Returns are due March 15th.

 

 

Beginning in 2011, all tax professionals are required to be registered with the IRS and pass an exam to continue to prepare income taxes.  At TRW’s, your return is always prepared by an Enrolled Agent (EA).  Enrolled Agents are professional tax practitioners who have technical expertise in the field of taxation and are licensed to represent taxpayers before the Internal Revenue Service at all administrative levels.

 

TRW’s as Enrolled Agents are already registered tax professionals.  In addition, EA’s are the only tax practitioners currently required by federal law to maintain their expertise through continuing professional education.  When you need up-to-date tax assistance, see us!  You can feel confident that when you have TRW’s prepare your return that you’re dealing with professionals who will diligently work for YOU!

 

As always, when we prepare your return, you will receive complete, comprehensive, and confidential personalized service at affordable rates.

 

Simply call or E-Mail for an appointment.  651-786-6425

 

We look forward to serving you! If you have any questions, please feel free to contact us.

 

 

Sincerely,

 

 

Teresa R. Weinkauf, EA; President                        Cassi R. Bombich, EA; Vice-President

teresa.trwstax@comcast.net                                     cassi.trwstax@comcast.net

1. Standard Mileage rates per mile are:                    2010               2011

                                              Business:                         .50 cents         .51 cents

                                              Medical/Moving                .16 1/2            .19

                                              Charitable                         .14                  .14

                                              (Remember logs are required to substantiate these deductions!)