Taxpayers will have until Monday, April 18 to file their 2010 tax
returns and pay any tax due because Emancipation Day, a holiday observed
in the District of Columbia, falls this year on Friday, April 15. By
law, District of Columbia holidays impact tax deadlines in the same way
that federal holidays do; therefore, all taxpayers will have three extra
days to file this year. Taxpayers requesting an extension will have
until Oct. 17 to file their 2010 tax returns.
The new year rings in new rules... but retains some key tax breaks from 2010. Lawmakers acted to keep individual tax from returning to 39.6% and keep the maximum tax rate on long term gains and dividends from rising to 20%. They also extended a set of tax breaks that had lapsed after 2009, including the write-offs for state sales tax, college tuition, and classroom expenses for teachers.
Employees and self employedworkers will receive a reduction of 2% in social security payroll tax in 2011, bringing down the rate from 6.
Since tax season is upon us, here are a few helpful tips to prepare
for the upcoming 2011 tax season!
- Make sure you your tax documents
organized and located all in one place in order to reduce the chance
of misplacing an important document.
- If you own a business or are an
employee who needs to drive for business, keep track of your
mileage. Keep a notebook in the glove-box and write down your
business miles that day! Although the IRS allows you to recreate a
mileage log, it is best to keep a mileage log.