Personal tax tips for tax preparation & income tax planning

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This page last updated on
February 5, 2010

Personal Tax Preparation & Income Tax Planning Tips from Brookwood Tax Service

Plug-In Electric Vehicle Tax Credits for 2009 & 2010
Can Generate a One-time Tax Credit of Up To $15,000

The amount of eligible credit in 2009 depends upon the battery capacity of the vehicle.
See the Full Article for details.

Tax Tip for Future Roth IRA Conversions
The Income Limit is Eliminated

Taxpayers who were not able to convert traditional IRA's into Roth IRA's because of old income restrictions can add the Roth conversion to their retirement tax planning starting in 2010.

Full Article

Tax Withholding Alert for Pension Income

Making Work Pay Credit May Cause Tax Shortfall

The Making Work Pay Credit available in 2009 and 2010 resulted in IRS adjustments to withholding tables. But taxpayers with only pension income may come up short at tax time.

Full Article

Tax Tip for Qualified Small Business Stock

Tax Exclusion Applies to Stock Acquired in 2009 & 2010

As part of the government's recovery stimulus program, an extra tax exclusion is available for Section 1202 small business stock investments made during 2009 and 2010.

Full Article

Zero Percent Capital Gains Tax Rate
Available for Asset Sales in 2009 and 2010

Taxpayers who meet specified income limits can sell appreciated assets during these two years and pay little or no tax on the capital gains.

Full Article

Tax Tip on Incentive Stock Options (ISO's)
Planning Can Reduce or Eliminate AMT

Exercise of Incentive Stock Options generates additional AMT income in the year of exercise. Careful planning can reduce or eliminate a tax surprise at year's end.

Full Article

Selling a Converted Primary Residence

New Tax Rule for Gains From Rental Period

Taxpayers used to be able to convert a rental home to their principal residence for two years and then shelter the gain from the sale under Section 121. But the rules have changed.

Full Article

Tax Tips on Miscellaneous Itemized Deductions
Check for Often Overlooked Deductible Expenses

Many taxpayers miss potential deductions, particularly deductions for work-related expenses.

Full Article

IRA Tax Break for Military Personnel
Tax-Free Combat Pay Qualifies for EIC

Combat pay is non-taxable income to military personnel, but Congress has allowed military personnel to designate their tax-free combat pay as earned income to qualify for the earned income credit. Military personnel with children should compute their tax return with and without the combat pay allowed for EIC to see which option provides the lower tax or larger refund.

Tax Tips for Reservists Called to Active Duty
You Qualify for Retirement Plan Tax Breaks

Reservists called to active duty can withdraw money from retirement plans without paying the 10% penalty, and are given at least two years after active duty ends to re-deposit the money.

Full Article

Tax Break for Retired Public Safety Officers
Save Taxes on Health Care Costs

Retired police, firefighters and other emergency services personnel can withdraw money tax-free from retirement plans to pay qualified health insurance premiums.

Full Article


	Deductible Costs of Job Hunting You can deduct employment agency fees and amounts paid for preparing your resume while looking for a new job in your present occupation. You can also deduct the cost of traveling to and from an area if the trip is primarily to look for a new job. However, you cannot deduct job search expenses if you are looking for a job for the first time, or in a new occupation.


	Business Transportation Deduction If you have an office in your home that is your principal place of business, you may deduct transportation expenses incurred in going between your home office and any other work location in the same trade or business.


	Check That IRS Notice Closely If you receive a notice from the IRS, don’t assume that it’s correct and automatically pay the amount shown on the notice. Many IRS notices just require you to give the IRS additional information to show why you do not owe the additional taxes or penalties. Always consult with your tax preparer when you receive notices from the IRS.


	Organize Your Tax Records Go to your tax appointment well organized. Have all your income statements such as W-2s and 1099s separate from your expenses. Make sure you have all the proper social security numbers for dependents, as well as their names as they appear on their social security cards. Careful organization will save you time come tax season.


	Georgia Part-Year Taxpayers There are three ways to calculate your Georgia deductions and two ways to calculate state personal exemptions. Tax-saving tip -- make sure your tax preparer knows the options and uses the best one for your tax return!

personal tax tips

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