On March 10, the Senate passed a bill carrying the "American Workers, State, and Business Relief Act" (AWSBRA). The Senate-passed bill will have to be reconciled with the version the House of Representatives passed on December 9, 2009 as the "Tax Extender Act of 2009". Although there are reconciling items to be worked out, both bills retroactively reinstate and extend through 2010 a number of provisions that expired at the end of 2009. In an effort to keep you up to date with current provisions, below are the items that are worth noting for individuals.
? The election to take an itemized deduction for State and local general sales taxes in lieu of the itemized deduction permitted for State and local income taxes.
? The additional standard deduction for State and local real property taxes.
? The above-the-line tax deduction for qualified tuition and related expenses.
? The $250 above-the-line tax deduction for teachers and other school professionals
? Permitting taxpayers who are age 70 1/2 or older to make tax-free distributions to charity from an IRA account of up to $100,000 per taxpayer.
There are many new tax provisions in both bills that need to be reconciled before going to the President for signature. At that time, we will bring to you the information that is significant for your 2010 income taxes.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).