Extended Tax Deductions for 2010 Tax Year

Here are a few tax deductions that have been extended for the 2010 tax year (2011 filing season):

1. Tuition and Fees:  You can still deduct up to $4000 in college tuition and fees on your 2010 taxes.  This deduction is an "above-the-line" deduction meaning it does not need to me itemized.
2. Student Load Interest:  $2,500 worth of annual interest from student loans can still be deducted.  Older loans, older than 60 months, can still take this deduction as well, but they are subject to income level adjustments.
3. Sales Tax:  In states that do not have an income tax you can claim your state and local sales tax in its place.  Even if your state does have an income tax, you have the option of claiming sales tax instead of income tax, but this would only be preferable if the sales tax is higher than the income tax.

These tax deductions were kept in effect by the passing of the recent Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.  This bill also kept current income tax levels at their current rate.  Income tax brackets had been scheduled to be raised this year.  This would have made us all pay more taxes or get less of a tax refund.  via bankrate.com