Small Business Income Tax Deductions for 2010, 2011

Small Business Income Tax Deductions

Owning a small business can offer many tax breaks and deductions at the end of the year. Most of these breaks and deductions will come directly from business related expenses.

Examples of these expenses would be:

  • Rent

  • Business Travel Expenses

  • Payroll

  • Insurance

  • Taxes

  • Interest

You can also receive tax deductions for capital expenses.

Examples of these expenses would be:

  • Equipment Purchases

  • Property Purchase

  • Repairs to Equipment or Property

  • Depreciation of Equipment

Home Business

If you are a new small business owner, chances are you may have a home office. You are able to claim a percentage of your home operating expenses that are used for operating your business. You would just divide up the amount of the home used for the business and take that percentage to take advantage of business operating deductions.

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What is the State Unemployment Tax Rate for 2010, 2011?

State Unemployment Tax Rate

Employers must pay State and Federal Unemployment taxes (SUTA and FUTA). The federal unemployment rate is equal to 6.2% of gross compensation, but normally nets to 0.8% because employers are allowed to take a credit up to 5.4% if they pay their state unemployment taxes in full and on time.

SUTA Tax Rate 2010

Different states have different state unemployment tax rates. Employers need to consult their state for their particular requirements regarding state unemployment tax rates and maximum wage base. Many states require new businesses to use an average starting rate until an employment history is established.

Find More Information on FUTA and SUTA Tax Rates for 2010

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1099s Instructions for 2010, 2011

1099s Instructions for 2010, 2011

The typical 1099 tax form involves money received from any business to someone performing any kind of contract work. It’s mandatory to report any wages received totaling any more than six hundred dollars within a single tax year.

There are many variations of this type of tax form, which are commonly known as “information returns.”

Even if you don’t receive the actual form itself from a business you did work for, you’re still required to claim these wages on your tax return. All you actually need is the employer identification number and the amount of money earned, which is considered taxable by the IRS.

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Depreciation Section 179 for 2010, 2011

Depreciation Section 179

So I’d have to assume at this point that the “depreciation section 179” is something you’re already acquainted with.

Just to make sure, I should explain that it is a recently implemented program courtesy of the US government that says: any qualifying piece of property that a business entity purchases, can be written off for the full purchasing price.

Ok then, according the IRS, a depreciation deduction is a reasonable allowance for the exhaustion, wear, and tear. (Including a reasonable allowance for obsolescence.)

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Insulation Tax Credit for 2010, 2011

Insulation Tax Credit

Many of the energy-efficiency improvements made to your home fall within the qualifications of the Insulation Tax Credit. The following information pertains to the eligibility and qualifications that allow you to claim the insulation tax credit.

Some, though not all, energy-efficient products qualify for the insulation tax credit. There are three parts to the energy efficiency improvement tax credit which allow you to claim 30% of the cost with other stipulations.

The first home improvement tax credit can be claimed for the following products:

  • Heating
  • Ventilation
  • AC (HVAC)
  • Insulation
  • Roofs (Metal & Asphalt)
  • Water heaters (non-solar)
  • Windows and doors
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Car Mileage Tax Deduction for 2010, 2011

Did You Know Your Car Mileage May Qualify For a Tax Deduction?

With oil prices escalating, and jobs getting more scarce, a lot of Americans are commuting more than twenty miles a day.

Well one thing you might want to keep in mind is the fact that car miles driven on the road can become a tax deduction on your tax return this year.

Your vehicle operating costs must coincide with some simple regulations that will determine if you qualify or not, such as:

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2010 Tax Return Calculator

It’s tax time again and you can use a tax return calculator to estimate your tax refund. Did you know you can calculate your tax return by using tax software online which provides a free tax return calculator? You will have a pretty close estimate of how big your tax refund will be.

2010 Tax Return Calculator

It really is easy to use even for non-techy people. You can also try before you buy. You do not pay a penny unless you decide to e-file with the software you are using. No need to be nervous with a trusted company like Turbo Tax for example. You can use their tax return calculator to get an estimate on how much tax you will owe or how big your tax refund will be.

You are not going to believe how easy this will be for you. The tax filing software has a graphical user interface which means it’s all laid out in pictures. This easily directs you to the correct path. You start at the top and answer a few simple questions like, “Are you married?” The next question is, “Are you Head of Household?” If you’re like me and you start to panic when it comes to tax questions, then there are very helpful question marks right beside the question which will explain the question in depth so you understand exactly how to answer.

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IRS Allowable Mileage Reimbursement Tax Deduction Rules Per Mile

Do You Wonder What The IRS Allowable Mileage Reimbursement Tax Rate Is?

The allowable IRS mileage rate tax deduction for 2010 is 50 cents per business mile driven.

It is wise to make sure you claim every tax deduction you legally are able to claim. The IRS mileage tax deduction rate for business purposes will change from year to year based on gas prices and the economy.
The IRS mileage rate for moving or medical purposes is 16.5 cents per mile. The mileage tax deduction for charitable travel will remain the same at 14 cents per mile.

Please remember to keep accurate records of business miles driven or any other miles driven for job searching, medical purposes, or charitable driving miles.

Standard Mileage Deduction Amounts

  • 50 Cents Per Mile For Business

  • 14 Cents Per Mile For Charitable

  • 16.5 Cents Per Mile For Medical

  • 16.5 Cents Per Mile For Moving

Actual Vehicle Expenses For IRS Vehicle Tax Deduction


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Personal Income Tax Exemption for 2010, 2011

Personal Income Tax Exemption:


If you’re new to filing an income tax return form you may not fully understand what an exemption is. When you have your Adjusted Gross Income calculated, you are allowed to subtract a certain amount of money for certain things. An exemption will reduce the amount of money on which you are taxed.

Alright now we have defined an exemption, the next step is finding out what exemptions we qualify to claim. It will depend on whether you’re married or single and if you have a dependent or do not have a dependent. Families usually save more money than single people do but, it all evens out in the end. At least singles aren’t buying diapers, right?


I cannot stress enough how important deductions are. Do you have any idea how many millions stay with the Federal government because people do not know they qualify for the deduction? Let me tell you, millions of dollars that could have been in the taxpayers’ pockets are not. Do not miss out on the deductions you deserve to claim!

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Federal Income Tax Withholding Formula for 2010, 2011

Federal Income Tax Withholding Formula

First of all, you subtract the non-taxable bi-weekly Thrift Savings Plan contribution from the gross bi-weekly wages.

Next you will subtract the health care, vision, health care and dependent care deductions from the result of the first subtraction. You add the bi-weekly fringe benefits to the last amount you had and you will have your adjusted bi-weekly gross income. Now you will multiply the adjusted gross bi-weekly amount by 26 to get your answer for annual wages.

Does This Sound like a lot of Work?

Don’t forget to figure in your exemption allowance times the number of exemptions. Now you will subtract that amount from the annual wages to finally determine taxable income. Now you can view a tax withholding table to see where you are on the chart. Find the chart for your filing status and then look for your income bracket.

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