There are some rule changes related to federal income tax forms

Many people already have their 2010 1040 W-2 and 1099 federal income tax forms on hand. This year’s 1040 form is a little different from those that have arrived in previous years. Let’s start from the beginning.

The last date to file your form this year is not April 15. Why do you ask? It’s because April 15th is Emancipation Day, which, in the District of Columbia, is a holiday. So they have extended the deadline by three days for the entire country. If your return isn’t ready by then, you still have hope: You can apply for an extension until October 17, if you file a Form 4868 before April 18.

Property taxes you owe to the state, local income taxes, charitable donations, or mortgage interest — write-offs like these that the wealthy traditionally use, have always been subject to a phase-out rule that reduced what could be written off . There’s another phase-out rule they need to worry about as well: it removes the exemption deductions for themselves and their dependents. The good thing is that both eliminations have been repealed this year; it’s all part of the Bush-era tax cuts. So this year, there will be no phasing out worksheets to fill out. You will be able to claim all of your itemized deductions and exemptions. And it’s going to be the same way next year and the year after that too.

The maximum adoption credit was raised this year to $13,170. And the credit is fully refundable for tax year 2010. What does this mean for you? It means you can receive a check for any adoption credits left over after your income tax bill has been reduced to nothing. There are certain federal income tax forms you must complete for this: form 8839 and form 1040 (on line 71).

If you’re self-employed, you can easily have your health insurance premiums deducted on the first page of your 1040 form. You’ll pay a lower income tax bill. Traditionally, IBOs have never been allowed to pay their premiums on Schedule SE. However, that’s not the way it’s going to be this year. For this year only, the self-employed can subtract their health insurance costs on Schedule SE. You will find a lower income tax bill as well as a fee tax bill. Unless Congress decides to extend this, it will expire this year.

This year, your tax preparer can file electronically for you. The law has been changed so that professional taxpayers file their returns electronically. Reduces pressure on the system. If you’ve never filed and filed your federal income tax forms electronically before, this could be the first year you need to do so. This is how things are going to be done from now on.