* The standard meal allowance rate for 2010 is: “$1.19 breakfast, $2.21 lunch/supper and $.66 snack. The rate for 2011 is the same except that the lunch/supper rate will be $2.22.
* The standard mileage rate is 50 cents per business mile (51 cents for 2011).
* The first year additional depreciation deduction was extended for 2010. It allows providers to deduct half the regular amount of depreciation in 2010 for eligible new items purchased in 2010.
* The record keeping rules for using cell phone in a business have been relaxed. Providers can use their Time percent to determine their business use deduction.
* Child care providers can deduct health insurance premiums as a business expense if they are not eligible to purchase health insurance through an employer. This new rules applies to 2010 only.
* If you hired an unemployed worker in 2010 you may be eligible for a payroll tax holiday that reduces the amount of employer Social Security taxes owed. If you did not take advantage of this tax holiday you can amend your tax return.
* Retirement plan contribution limits for 2010: Regular or Roth IRA $5,000 (plus $1,000 if age 50 or older); SIMPLE IRA $11,500 (plus $3,500 if age 50 or older); SEP IRA 18.58% of profit.
* Saver’s Tax Credit eligibility limits: $55,500 married filing jointly ($56,500 for 2011); $17,750 single ($18,250 for 2011).
* Energy tax credits: 30% of eligible expenses up to a maximum $1,500 credit. Child care providers with a Time-Space percentage of above 20% must reduce their credit deduction.
If you have questions about any of these tax changes for 2010 or any other tax questions, contact me at firstname.lastname@example.org
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