You can't do this on your tax return

Here are ten no-no's on your return.

1. Claim head of household filing status when you're married
2. Claim Earned Income Credit for a child that doesn't live with you
3. Claim an exemption for a child that doesn't live with you and you don't have permission from the custodial parent.
4. Claim the standard deduction when your spouse doesn't
5. Claiming deductions for a hobby
6. Claim an exemption for your pets
7. Fail to file a tax return and claim the "taxation without representation"
8. Deducting your home office when your employer provides a work station for you
9. Deducting commuting expenses
10. Deducting depreciation expenses on a vehicle you lease

In addition to the common tax return mistakes written previously, here are 11 more deductions you can't write off .

What's New for your 2010 Income Tax Return

Due Date
Even though April 15 falls on a Friday this year, the deadline for your 2010 Form 1040 is Monday April 18. Emancipation Day is a District of Columbia holiday that falls on April 15 so the tax filing deadline for the whole nation is deferred to April 18 . If your return won't be ready by then, you can extend the deadline all the way out to October 17 by filing Form 4868 on or before April 18.

Personal exemption: $3,650 ($3,800 in 2012, $3,700 in 2011)

Standard deduction:
MFJ/QW $11,400 ($11,900 in 2012, $11,600 in 2011)
HH $8,400 ($8,700 in 2012, $8,500 in 2011, $8,350 in 2009)
Single / MFS $5,700 ($5,950 in 2012, $5,800 in 2011)

Maximum Earned Income Credit
$5,666 if 3 or more qualifying children ($5,891 in 2012, $5,751 in 2011, $5,657 in 2009)
$5,036 if 2 qualifying children (from $5,028 in 2009)
$3,050 if 1 qualifying child (from $3,043 in 2009)
$457 if no qualifying child (same)

Income Limits for Earned Income Credit

• Three or more qualifying children and earn less than $43,352 ($48,362 if MFJ)
• Two qualifying children and earn less than $40,363 ($45,373 if MFJ)
• One qualifying child and earn less than $35,535 ($40,545 if MFJ)
• No qualifying child and earn less than $13,460 ($18,470 if MFJ)

Wages Limit
The maximum amount of wages subject to social security tax is $106,800 (same as 2009).

Income Tax Benefits increase in 2011.

The IRS announced last week the increases to deductions and limits for the 2011 year. These amounts are revised every year due to inflation. Typically, the IRS announces these increases in October but waited until after the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 became law on December 17, 2010.

Increased personal exemption is $3,700 ($3,800 in 2012, $3,650 in 2010 and 2009, $3,500 in 2008).

Increased Standard Deduction:

• Married filing Joint / Qualifying Widower: $11,600 ($11,900 in 2012, $11,400 in 2010 and 2009)
• Head of Household: $8,500 ($8,700 in 2012, $8,400 in 2010, $8,350 in 2009)
  
• Single / Married filing Separate: $5,800 ($5,950 in 2012, $5,700 in 2010 and 2009)
• The additional standard deduction for blind people and senior citizens is $1,150 for married individuals, up $50, and $1,450 for singles and heads of household, also up $50.

Tax bracket thresholds have increased. For example, a married couple filing a joint return reaches the 25% bracket with $69,000 ($70,700 in 2012) in taxable income compared to $68,000 in 2010.

Earned Income Tax Credit amounts have increased. The maximum credit for taxpayers with three eligible children rises to $5,751, up from $5,666 in 2010 and $5,657 in 2009. The maximum income limit rises to $49,078, up from $48,362 in 2010 and $48,279 in 2009. The ability to claim three qualifying children for Earned Income Tax Credit was originally only available for 2009 and 2010 tax years under the 2009 American Recovery and Reinvestment Act (ARRA). Last week's tax bill extended this provision for the 2011 and 2012 tax years.

Modified Gross Income for the lifetime learning credit increases to $102,000 for joint filers, up from $100,000 and $51,000 for singles and heads of household filing statuses, up from $50,000.

Please note the following for the 2011 tax year:

• The $400 ($800 if married filing jointly) Making Work Pay Credit will expire,
• The Social Security payroll tax rate will decrease by 2%, as will Self-Employment Tax for self-employed taxpayers, and
• The estate tax will return with a rate of 35% and a lifetime exclusion of $5 million for 2011 and 2012.

2009 tax law changes

Plenty of changes to deductions and limits for this year's Form 1040. Here are some to make note of:

Increased personal exemption is $3,650 (up from $3,500 in 2008, will remain $3,650 in 2010).

Increased Standard Deduction:

• Married filing Joint / Qualifying Widower: $11,400
• Head of Household: $8,350
  
• Single / Married filing Separate: $5,700

Note: Head of Household increases to $8,400 in 2010.

Additional Child Tax Credit
Earned Income amount used to figure the additional child tax credit is 15% of the income that exceeds $3,000 (down from $8,500). To take advantage of this credit, complete Form 8812 and report the total on Form 1040, line 65.

Maximum amount of wages subject to social security tax is $106,800 (up from $102,000)

Standard Mileage Rates: Business purposes is 55 cents per mile; medical reasons and moving expenses is 24 cents per mile; charitable purposes is still 14 cents per mile

IRA contribution limits remain unchanged.

Health Savings Accounts (HSAs)
Maximum deduction is now $3,000 ($5,950 for family coverage). Minimum annual deductible of a high deductible plan is $1,150 ($2,300 for family coverage). Complete Form 8889 and report the deduction on Form 1040, line 25.

"Kiddie Tax"

• Investment income over $1,900 of a child age 18 or younger will be taxed at the parent's rate on Form 8615.
• Parents may be able to include on their own return the child's gross income in excess of $1,900 on Form 8814.

New Tax Forms

• Schedule L – Standard Deduction for Certain Filers
• Schedule M – Making Work Pay and Government Retiree Credits