Employers are exempted from paying 6.2% share of Social Security employment taxes on wages paid in 2010 to newly hired qualified individuals.

An unexpected tax liability might arise for taxpayers holding down more than one job. The “Making Work to Pay Credit” for 2009 and 2010, authorized a refundable tax credit equal to the lesser of 6.2% of earned income or $400 for each eligible individuals. This could entitle a married couple to receive a refundable credit of $800. Taxpayers whose employers calculate withholdings at the revised tax rates take less withholdings than the ultimate calculated tax.

Business Standard Mileage and Other Rates Decrease for 2010

IRS announced that the optional mileage allowance for owned or leased autos (including vans, pickups or panel trucks) is 50¢ per mile for business travel after 2009. That's 5¢ down from the 55¢ allowance for business mileage during 2009. Further, the rate for using a car to get medical care or in connection with a move that qualifies for the moving expense deduction is 16.5¢ per mile, down 7.5¢ from the 24¢ per mile allowance for 2009.

On November 11, 2009, President Obama signed into law the Military Spouses Residency Relief Act. The Act is effective beginning for 2009 tax year.

The Act provides that a spouse shall not lose or acquire the domicile or residence in a state when the spouse is present in the state solely to be with the servicemember in compliance with orders that result in each residing in the same state.

If you are a volunteer worker for a charity, you should be aware that your generosity may entitle you to some tax breaks.

Although no tax deduction is allowed for the value of services you perform for a charitable organization, some deductions are permitted for out-of-pocket costs you incur while performing the services (subject to the deduction limit that generally applies to charitable contributions). This includes items such as:

With the greatly depressed value of housing, now is the time to consider a special kind of irrevocable trust that can be used to transfer your residence to your children at a significantly reduced gift tax cost and with no estate tax, yet allow you to continue to live in the residence for as long as you wish. This special type of trust is known as a qualified personal residence trust (QPRT). (QPRTs are sometimes also referred to as “residence GRITs” or “house GRITs”.) Here's how it works.

What is expected to substantiate the deduction for using a vehicle for work? Whether it is a claim for actual expense incurred or the standard mileage rate, the IRS requires substantiation of the use. This is a good time to review

How to substantiate business/investment use of a vehicle --

Deductions for the business/investment use of vehicles (including both cars and trucks) are not allowed unless the usage is substantiated with an adequate record of the following elements:

1) The date, mileage and business or investment purpose of each trip;

New Deductions and Credits for South Carolina Taxpayers

South Carolina offers deductions and credits for those whose home insurance premiums are "excessive." In a nutshell, these deductions and credits include the following: