As you are gathering your year-end tax information, here are some things to think about…
- Keep track of non-cash charitable contributions. The IRS requires that you keep detailed records of your non-cash charitables – items donated, dates, market values and costs. You will also get an additional Idaho tax credit for cash or non-cash contributions to Idaho schools or youth facilities.
- Keep track of medical and charitable miles driven in your personal vehicle. For 2010 you will receive a deduction of 16.5 and 14 cents per mile, respectively for those miles driven. The IRS requires that you keep a detailed log of miles driven, dates and deductible purpose.
- You can still contribute to your Health Savings Account and Individual Retirement Account and receive deductions on your 2010 tax return, as long as you contribute to the accounts before April 15, 2010 and before filing your 2010 tax return.
- For 2010, self employed individuals will be allowed to deduct their health insurance from their business income before any self employment tax is calculated. This will be an additional savings to those business owners who operate a partnership or a sole proprietorship.
- If you are in a low enough tax bracket that your capital gains income is taxed at a 0% rate, keep in mind that Idaho did not discount the rate of taxation for capital gains as the federal government did. You will be paying tax on capital gains in Idaho at the top rate for your income level bracket, possibly up to 7.8%