How the new tax laws will affect you?

Are you up-to-date on the new tax laws that will be imposed for 2010 and 2011? The changes that have been put into place could save you a lot of money.

First of all the standard deductions will be increased for most taxpayers. The increased amounts are reflected by the status you file for example:

• Married couples filing jointly will be able to take a standard deduction of $11,400.
• For Singles and Married couples filing separately they can take a standard deduction of $5,700.

Other new tax law changes you can expect in this year are:

• You can contribute more in your 401K-retirement account and your IRA account before having to pay tax on it.
• The mileage deduction has decreased by 2.5cents.
• The gift tax exclusion has increased by $1,000.
• The earned income credit has increased more than $2,000 from 2008.