Tax Tidbits For more juicy tax tips, subscribe to Diane's quarterly newsletter, The Blarney Blab, by sending an e-mail with "Newsletter" in the subject line to Diane@dianeobrienkelly.com.

If you make a donation before March 1st to a qualified charity for Haiti earthquake disaster relief, you have the option of claiming the deduction on your 2009 tax return rather than waiting until you file your 2010 return.  See http://www.irs.gov/newsroom/article/0,,id=218678,00.html?portlet=7 New for 2009 - Be sure to claim your "Making Work Pay" credit on line 63 of your Form 1040.  Singles can get a tax credit of up to $400 and married folks can get up to $800.  Income limitations apply.  For more info, see the instructions for line 63 in the Form 1040 instructions at http://www.irs.gov/pub/irs-pdf/i1040.pdf .  You will also need to file Schedule M.  Here's the link to the instructions http://www.irs.gov/pub/irs-pdf/i1040sm.pdf  and form http://www.irs.gov/pub/irs-pdf/f1040sm.pdf.  But also beware! The withholding tables were changed in 2009 to reduce the amount of withholding from paychecks, essentially paying us this credit in advance.  As a result, some people will end up owing more tax with their returns this year.  The IRS will make special accomodations for those people affected and will waive the underpayment penalty resulting from the reduced withholding.  For details, see Form 2210 and page 2 of the related instructions at http://www.irs.gov/pub/irs-pdf/i2210.pdf and http://www.irs.gov/pub/irs-pdf/f2210.pdf.  This just in - The IRS just announced that the standard mileage rate for 2010 will be 50 cents per mile, a 5 cent decrease over the 2009 rate.   The Homebuyers Credit has been extended and expanded - it's not just for "first-timers" anymore and the income limitations are less restrictive.  If you think you might buy a home in the next few months, be sure to find out if you're entitled to the credit.  More info is at:  http://www.irs.gov/newsroom/article/0,,id=215791,00.html A bill is currently under consideration in Congress to allow pet owners to get a tax deduction for pet care costs, including vet bills, of up to $3,500!  Call, write, or email your Congressman now to let him/her know that you support this bill!  Details at: http://www2.aspca.org/site/MessageViewer?em_id=63224.0 I'm taking over School with the first in a series of tax articles for writers at http://writingplayground.com/school.html#tax1. This month, I'll walk you through "Commonly Missed Deductions."  While you're there, sign up for the Writing Playground's newsletter! The IRS in on YouTube!  No, it's not a video of the IRS Commissioner and his dancing cat, but it will explain some of the details of the American Recovery and Reinvestment Act.  Follow this link to join the party:  https://mailapp01.register.com/e549d510/gds/popout.html. States are cracking down!  If you run a small biz - including a writing biz - you may be subject to a variety of state and local taxes, including sales tax, use tax, business income tax, and business property taxes.  Be sure you are paying in what you owe.  I've noticed a significant increase recently in enforcement action by state and local tax authorities. Looking for a job?  Your job search expenses may be deductible.  Check out http://www.irs.gov/newsroom/article/0,,id=210523,00.html Check out my article "Don't Lose out!  Commonly Missed Tax Deductions" on page 14 of the July 2007 issue of "NINK" at http://www.ninc.com/general/nink_sample.pdf. These Tax Tidbits are continuously updated, so check back often!