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Prepare for a whole list of changes in new Form 1040

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in Employee Benefits Program,Human Resources,Small Business Tax,Small Business Tax Deduction Strategies

Due to a myriad of new tax laws, IRS rulings and other adjustments, you’ll find numerous new twists and turns on this year’s Form 1040.

Alert: At least you have until April 18 to file your Form 1040 for the 2010 tax year, thanks to the Emancipation Day holiday in Washington, D.C.

Significantly, the new Form 1040 incorporates changes resulting from the Small Business Jobs Act of 2010 and the 2010 Tax Relief Act passed late last year. Here’s the skinny:

Line 13, Capital gain (or loss): For decedents dying in 2010, capital gains and losses are computed under modified “carryover basis” rules if the estate elects zero estate tax.

Line 15, IRA distributions: The $100,000 cap for Roth IRA conversions is eliminated. A rollover is taxed ratably over 2011 and 2012 unless you elect otherwise.

Married couples filing separately may now convert amounts in a traditional IRA to a Roth.

Line 16, Pensions and annuities: For distributions afte...(register to read more)

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