I have to say, when comparing financial software programs for doing my return there are several choices, TurboTax seems to have the best rating overall, though it appears H&R Block comes in a close second. What's great is that they both offer a FREE Edition, and the Free Editions both include Federal return and Efile, so the only thing you have to pay for is your state income return - if your filing one. At any rate filing your taxes with TurboTax is an inexpensive way to go compared to hiring a professional who would charge a whole lot more money, even if you needed to step away from the free software and get a paid edition like Basic, Deluxe or Premier software.
The great thing is,
TurboTax 2010 Online
is actually programmed in with every deduction and credit you could imagine
so your sure not to miss any opportunity to increase your refund. Then
there's this, I can get my filing done faster from the comfort of my own home
than if I had to take all my paperwork to an accountant.
I never look forward to paying
Uncle Sam, but I'm willing to pay my fair share.
The reality is that I don't want to pay more than I have to. That's why
using a good preparation program like
TurboTax 2010
Software is a great way to go. Another big plus is that when you use it
every year, you don't have to keep filling in everything from the previous
year. It imports all your information so all you need to do is update where
needed and your done, it's that easy!
TurboTax 2010 & Tax Law Changes
The following entails important federal law information and changes for 2010.
|
Social Security/ Medicare |
2010 |
2009 |
|
Social Security Wage Base |
$106,800 |
$106,800 |
|
Medicare Wage Base |
No limit |
No limit |
|
Individual Retirement Accounts |
2010 |
2009 |
|
Roth IRA Individual, up to 100% of earned income |
$ 5,000 |
$ 5,000 |
|
Traditional IRA Individual,
|
$ 5,000 |
$ 5,000 |
|
Roth and traditional IRA additional annual "catch-up" contributions for account owners age 50 and older |
$ 1,000 |
$ 1,000 |
|
Qualified Plan Limits |
2010 |
2009 |
|
Defined Contribution Plan Dollar limit on additions on Sections 415(c)(1)(A) |
$ 49,000 |
$ 49,000 |
|
Defined Benefit Plan limit on benefits (Section 415(b)(1)(A) |
$195,000 |
$195,000 |
|
Maximum compensation used to determine contributions |
$245,000 |
$245,000 |
|
401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2)) |
$16,500 |
$16,500 |
|
401(k), 403(b), 457 & SARSEP additional "catch-up" contributions for employees age 50 and older |
$5,500 |
$5,500 |
|
SIMPLE deferrals (Section 408(p)(2)(A)) |
$11,500 |
$11,500 |
|
SIMPLE additional "catch-up" contributions for employees age 50 and older |
$2,500 |
$2,500 |
|
Compensation defining highly compensated employee (Section 414(q)(1)(B)) |
$110,000 |
$110,000 |
|
Compensation defining key employee (officer) |
$160,000 |
$160,000 |
|
Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c) |
$550 |
$550 |
|
Driving Deductions |
2010 |
2009 |
|
Business mileage, per mile |
50 cents |
55 cents |
|
Charitable mileage, per mile |
14 cents |
14 cents |
|
Medical and moving, per mile |
16.5 cents |
24 cents |
|
Business Equipment |
2010 |
2009 |
|
Maximum Section 179 deduction |
$134,000 * |
$250,000 * |
|
Phaseout for Section 179 |
$530,000 |
$800,000 |
|
Transportation Fringe Benefit Exclusion |
2010 |
2009 |
|
Monthly commuter highway vehicle and transit pass |
$ 230 |
$ 230 |
|
Monthly qualified parking |
$ 230 |
$ 230 |
|
Domestic Production Activities Deduction |
2010 |
2009 |
|
% of qualifying business net income |
9% (6% for oil and gas companies) |
6% |
|
Standard Deduction |
2010 |
2009 |
|
Married filing jointly |
$ 11,400 |
$ 11,400 |
|
Single (and married filing separately) |
$ 5,700 |
$ 5,700 |
|
Heads of Household |
$ 8,400 |
$ 8,350 |
|
Personal Exemption |
2010 |
2009 |
|
Amount |
$ 3,650 |
$ 3,650 |
|
Domestic Employees |
2010 |
2009 |
|
Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc. |
$ 1,700 |
$ 1,700 |
|
Kiddie Taxes |
2010 |
2009 |
|
Net unearned income not subject to the "Kiddie" |
$ 1,900 |
$ 1,900 |
|
Estate Taxes |
2010 |
2009 |
|
Federal Estate Exemption |
repealed ** |
$3.5 million |
|
Annual Gift Exclusion |
2010 |
2009 |
|
Amount you can give each recipient |
$13,000 |
$ 13,000 |
|
IRS Interest Rates |
2010 |
2009 |
|
Overpayments |
4% |
4% or (3% for corporations) 1.5% for corp. overpayments exceeding $10k |
|
Underpayments |
4% |
4% or (6% for large corporate underpayments) |
The stimulus law provides a larger Section 179 depreciation deductions for 2009. For 2010 the maximum deduction will revert back to a lower amount unless Congress takes further action.
With a 2001 law, the estate exemption was gradually increased and the rate levied on estates decreased. For one year only in 2010, the estate fees are repealed. Several members of Congress may work to put it back in place, retroactive to January 1, at 2009 rates ($3.5 million exemption/45% rate).
