Tax Time: 4 Big Tax Changes for 2011.
Posted: January 11th, 2011 | Author: Joe | Filed under: Taxes | Tags: Tax Returns, Tax Time, Taxes, Tips | 1 Comment »The IRS tax code is an ever evolving creature (some would say monster). Year after year it changes. Some changes are small adjustments to account for inflation, while others are radical alterations brought on by regulatory changes or new laws passed by congress. The 2010 tax year is no different. Here are 4 potentially big changes to keep in mind as you toil through long weekends attempting to decode the latest raft of documents required to file your taxes…
1. Smaller Mileage Deductions.
The deduction for non-reimbursed business related mileage for 2010 is 5 cents less than it was in 2009, while the deduction for medical mileage is16.5 cent, or 7.5 cents less. Mileage racked up for charitable driving though is the same. I guess the government wants people to keep driving for charity, but not business or health? 
2. Better Limits on Deductions for Property Damage or Loss Due to Theft
The total loss due to damaged or stolen property must now only be over $100 to be deductible. The limit was $500 last year. However, losses still need to exceed 10% of your adjusted gross income to be deductible.
3. Deduction for Taxes and Fees on New Motor Vehicle Purchases
State, local and excise taxes related to the purchase of a new car, light truck motor home or motorcycle between February 17th and December 31st of 2009 can be deducted. This particular deduction can be used with either standard deduction or itemized deductions, which makes it a very handy deduction indeed!
4. Bigger Deductions for Long-Term Care (LTC) Insurance Premiums
Long term care owners can now deduct more of their premiums for 2010 than in 2009. Ages 51-60 can now claim up to $1,230 of their premiums ( up from $1,190 in 2009). Deduction for other age groups start at $330 for the 40 and under crowd and go as high as $4,110 for the over 70 crowd.
I’m glad they change #2. The limit was too large before. It’s a little known line-item that helps if you’re a victim of theft.