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: Business owners may benefit from liberalized .
Line 14,: 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,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.