Click on links at left to find tax code changes, and helpful tips.

• Important 2010 update for Arizona residents.  Click on Individual Tax link at left.
• Download a summary of THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009
• Social Security COLA for 2010 announced: Benefits remain at 2009 level.
• Income ceiling for S.S. OASDI tax is $106,800 in 2010.
• All income is taxed for the Medicare portion of Social Security.
• Rates 2010: OASDI / Medicare is 6.2% / 1.45% for individuals and 12.4% / 2.9% for self-employed. 
• Medicare Prem. Part B is $110.50 per month in 2010.  High income earners pay more.
• Refundable First-time Home Buyer Credit: In 2008, Congress provided taxpayers with a refundable tax credit that was equivalent to an interest-free loan equal to 10 percent of the purchase of a home (up to $7,500) by first-time home buyers. The provision applies to homes purchased on or after April 9, 2008 and before July 1, 2009. Taxpayers receiving this tax credit are currently required to repay any amount received under this provision back to the government over 15 years in equal installments, or, if earlier, when the home is sold. The credit phases out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 in the case of a joint return). The bill eliminates the repayment obligation for taxpayers that purchase homes after January 1, 2009, increases the maximum value of the credit to $8,000, and removes the prohibition on financing by mortgage revenue bonds, and extends the availability of the credit for homes purchased before December 1, 2009. The provision would retain the credit recapture if the house is sold within three years of purchase. UPDATE 2010: Credit extended to main homes purchased after Nov. 6, 2009 and before July 1, 2010 (written binding contract must be signed before May 1, 2010).  Military and certain federal employees serving outside the U.S. have an extra year to apply for the first time home buyer credit.
• "American Opportunity" Education Tax Credit: The bill would provide financial assistance for individuals seeking a college education. For 2009 and 2010, the bill would provide taxpayers with a new "American Opportunity" tax credit of up to $2,500 of the cost of tuition and related expenses paid during the taxable year. Under this new tax credit, taxpayers will receive a tax credit based on one hundred percent (100%) of the first $2,000 of tuition and related expenses (including books) paid during the taxable year and twenty-five percent (25%) of the next $2,000 of tuition and related expenses paid during the taxable year. Forty percent (40%) of the credit would be refundable. This tax credit will be subject to a phase-out for taxpayers with adjusted gross income in excess of $80,000 ($160,000 for married couples filing jointly).

Please be advised that all tax advice or information on this site is for instructional purposes only.  While we strive to keep all data current, it's virtually impossible to keep up with the constant changes in the Internal Revenue Code.  Always check with your tax advisor before making critical tax decisions.