It's That Time - Tax Preparation

The individual tax code for 2010 has been finalized and full processing begins February 14th. (Please note that they can change their minds at any time.) You should have received all of your tax documents by now. Take a moment (maybe an hour or two) to gather all of your tax items together and verify that you do have everything that you need. Contact the appropriate company for any missing documents - be sure and check online first.

A couple of things to be mindful of if you are preparing your own return.

• Personal exemptions are no longer limited based on income.
• Itemized deductions are no longer limited based on income.
• Sales tax is still allowed on Schedule A for Texas residents.
• Real estate taxes can no longer be claimed on Schedule L. They must be claimed on Schedule A as part of Itemized Deductions. This is only advantageous if your Itemized Deduction is greater than your Standard Deduction.
• Full unemployment benefits are taxable. There is no $2400 exclusion for 2010.

If you are planning on having your return prepared, be sure that you find a reputable preparer. Don't be afraid to ask them about their education and experience. You want someone with an accounting degree at the very least. Preferably a CPA or a reputable preparer with several years experience.

Happy filing!