Legislative Changes Affecting the 2010 Publication 17 -- 18-JAN-2011
At the time the 2010 Publication 17 went to print, Congress was considering legislation to extend various tax benefits that were scheduled to expire and not be available for 2010. Cautions throughout the publication identified those provisions. Listed below, by outcome, are all the benefits mentioned in the cautions.
For the benefits that were extended, a reference is given to a publication or form (or form instructions) that provides more detailed information.
Provisions extended by Public Law 111-312
Deduction for educator expenses in figuring adjusted gross income (AGI). See the 2010 Publication 529.
Tuition and fees deduction in figuring AGI. See the 2010 Publication 970.
Deduction for state and local general sales taxes. See the 2010 Instructions for Schedule A (Form 1040).
District of Columbia first-time homebuyer credit. See the 2010 Form 8859 when available.
Exclusion from income of qualified charitable distributions made from IRA accounts. See the 2010 Publication 590 when available.
Special deduction limit for qualified conservation contributions, and special rules for donations of food inventory. See the 2010 Publication 526 when available.
Allowance of certain credits against the alternative minimum tax (AMT), such as the credit for child and dependent care expenses (see the 2010 Form 2441), credit for nonbusiness energy property (see the 2010 Form 5695), credit for the elderly or the disabled (see the 2010 Schedule R (Form 1040A or 1040) lifetime learning credit (see the 2010 Form 8863), mortgage interest credit (see the 2010 Form 8396), and District of Columbia first-time homebuyer credit (see the 2010 Form 8859 when available).
In addition, the regular gambling withholding rate remains 25% for 2011, and the backup withholding rate remains 28% for 2011. See the 2010 Publication 505 when available.
Provisions not extended
Government retiree credit.
Increased standard deduction for real estate taxes or a net disaster loss from a disaster occurring after 2009.
Itemized deduction or increased standard deduction for state or local sales or excise taxes on the purchase of a new motor vehicle after 2009.
The exclusion from income of up to $2,400 in unemployment compensation.
Extra $3,000 IRA deduction for employees of bankrupt companies.
Decreased estimated tax payments for certain small businesses.
Credit to holders of clean renewable energy bonds issued after 2009.
Certain tax benefits for Midwestern disaster areas, including increased Hope and lifetime learning credits and the additional exemption amount if you provided housing for a person displaced by the Midwestern storms, tornadoes, or flooding.
Alternative motor vehicle credit for qualified hybrid vehicles weighing more than 8,500 pounds.
In addition, the personal casualty and theft loss limit remains the excess of the loss over $100 (instead of the $500 limit that applied for 2009), and federally declared disasters occurring in 2010 are subject to the 10%-of-AGI limit.
