Finances & Money Taxes

Keep an eye out for these changes to your Form 1040

Many of you hopefully use tax software like TurboTax to do your taxes each year (even if you only do the 1040EZ, it’s free to file then), but SmartMoney put together a list of key changes to keep an eye out for this year:

1. Due date this year is April 18. Thanks to Emancipation Day being a District of Columbia holiday and falling on the usual filing deadline of April 15, you get an extra three days this year. Still no excuse to procrastinate though, unless you owe money and want to eek out a few extra cents of interest from the bank before paying off your tax debt.

2. Phase-out worksheets have been phased out. Itemized deductions and exemptions can be written off in full. Previously these would dwindle away as your income increased.

3. Max adoption credit increased to $13,170. This is definitely great news for anyone looking to adopt due to the high costs of adopting.

4. Self-employed allowed to deduct health insurance premiums when figuring out self-employment tax bills on Schedule SE

5. If you bought a home in 2008, you may have to repay part of the Homebuyer Credit

6. No real estate tax deduction if you don’t itemize your deductions. If you CHOOSE not to itemize, but your deductions are over the standard deduction minimum, then you’re a bit of a fool. Get every last cent back that you can!

7. No deductions for sales taxes on buying a new car

8. 100% of unemployment benefits will be taxed. In 2009 your first $2,400 was tax-free.

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