What is in this article?:
- Tax planning recommendations
- Tax cuts expiring
- Concentrate on what’s known
Tax Breaks Expired
The tax breaks that expired at the end of 2009 include: deduction for classroom expenses for educators, tuition and fees deduction for college, additional standard deduction for property taxes, additional standard deduction or itemized deduction for sales tax paid on a new vehicle, itemized deduction for state and local sales taxes in lieu of state income taxes, tax-free exclusion of the first $2,400 in unemployment benefits and tax-free exclusion of IRA funds donated directly to charity.
In addition, required IRA payments from IRA plans resume this year. Congress did not extend last year's waiver of required IRA distributions (if age 70.5 or more).
Tax Brackets/Standard Deduction
Tax brackets remain essentially the same as last year (See Table 1)