How to Stay on Track with Your 2010 Taxes

Being an entrepreneur myself, I have found that it is extremely hard to stay on track and not mess up my taxes in 2010 in order to make it easier for me next year. In between projects I needed to keep track of my spending, income and taxes, basically bookkeeping and at some point it can become so overwhelming that everything starts to mess up.

There are several things that I learned from a Tax Lady Roni Lynn Deutch regarding taxes:

Always stay organized

If you follow columnist Roni Lynn Deutch, you will  be updated with tax changes that will help you take care of your taxes. However, no matter how good all the information is, if you do not keep the receipts and documentation organized, it will do you little good. I learned to keep a filing folder for my receipts, documents and all tax information to make it easier for me for the following tax time.

Changes in Childcare Tax Credit

As you may have already known, childcare tax credit is currently set to $1,000 for each qualifying child. But considering the rough economy we are all in, President Obama recently announced that he will double the childcare tax credit to make it a little bit easier for struggling parents. Roni Lynn Deutch can not be certain when this will be applied but keeping an eye on this subject will help you sort out your taxes right coming tax time.

Changes in Estate Tax

The estate tax will be higher than ever this year. It is said that the changes are quite drastic and it is best to consider hiring an estate tax attorney to make sure you make the right decisions.

Changes in Roth IRA

The income limits for converting an IRA to Roth IRA has been eliminated for 2010. Therefore there is a great potential retirement saving for Americans who did not qualify before. But there are conversion costs that you need to be aware of. These conversion costs can be paid half in 2011 and then the other half in 2012.

Energy Efficient Upgrades to Your Home

You might want to plan on making energy efficient upgrades to your home this year. There is tax savings approved in last year’s stimulus bill which will be expired at the end of this year. With this upgrade, you are allowed to claim up to $1,500 in credits or even more with solar panels installation in your home.

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This entry was posted on Wednesday, August 11th, 2010 and is filed under Premium News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
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