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The 1040 tax return package this year includes the following:

Schedule A, Itemized deductions

Line 7, New motor vehicle taxes: The deduction for state or local sales or excise taxes on the purchase of a new vehicle no longer applies (unless you bought the vehicle in 2009 after Feb. 16 and paid the tax in 2010).

Line 16, Gifts to charity: The rule allowing a taxpayer age 70½ or older to transfer up to $100,000 tax-free from an IRA to a charity has been extended for 2010. Note: A distribution made in January 2011 may be treated as a 2010 distribution.

Line 20, Casualty and theft losses: For 2010, the “floor” for each personal casualty loss reverts to $100 (down from $500 in 2009).

Homeowners affected by corrosive drywall between 2001and 2008 can deduct damages as casualty losses on 2010 returns.

Line 21, Unreimbursed employee expenses: The standard mileage rate for 2010 is 50 cents per business mile (down from 55 cents per mile for 2009).

Line 29, Total itemized deductions: For 2010, high-income taxpayers no longer are subject to phaseouts of itemized deductions.

Schedule B, Interest and ordinary dividends

Line 3, Excludable interest on series EE and I U.S. Savings Bonds issued after 1989: The phaseout ranges for the tax exclusion for U.S. Savings Bonds used for higher-education purposes are increased for 2010.

Schedule C, Profit or loss from business

Line 9, Car and truck expenses: The standard mileage rate for 2010 is 50 cents per business mile (down from 55 cents per mile for 2009).

Line 13, Depreciation and Section 179 expense: Business owners may benefit from liberalized depreciation rules.

Line 14, Employee benefit programs: An eligible small employer claiming the new credit for health care expenses must reduce expenses by the amount of the credit.

Schedule E, Supplemental income and loss

Line 20, Depreciation expense or depletion: Real estate owners may benefit from liberalized depreciation rules.

Schedule SE, Self-employment tax

Line 3, Combined income: For 2010, the income tax deduction for the cost of health insurance is also allowed in calculating net earnings for self-employment tax purposes. On Schedule SE, reduce your net self-employment income by the amount of the health insurance deduction entered on Line 29 of Form 1040.

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