Form 1040-C Instructions, IRS Form 1040-C Instructions is used by aliens who intend to leave the United States or any of its possessions to report income received or expected to be received for the entire tax year, and if required, to pay the expected tax liability on that income.
Use your 2009 tax return as a guide in figuring your 2010 tax, but be sure to consider the following. Only some of the amounts in the following paragraphs have changed from 2009, but some unchanged amounts are also provided here for your convenience.
Personal exemption and itemized deduction phaseouts. For 2010, taxpayers with AGI above a certain amount will not lose part of their deduction for personal exemptions and itemized deductions. Under current law, these phaseouts will resume in 2011.
IRA deduction expanded. You may be able to take an IRA deduction if you were covered by a retirement plan and your 2010 modified AGI is less than $66,000 ($109,000 if a qualifying widow(er)). If your spouse was covered by a retirement plan, but you were not, you may be able to take an IRA deduction if your 2010 modified AGI is less than $177,000.
Standard mileage rates. The rate for business use of your vehicle is reduced to 50 cents a mile. The rate for use of your vehicle to move is reduced to 16½ cents a mile. The rate of 14 cents a mile for charitable use is unchanged.
Alternative minimum tax (AMT) exemption amount decreased. The AMT exemption amount is decreased to $33,750 ($45,000 for a qualifying widow(er); $22,500 if married filing separately).
Domestic production activities income deduction. The percentage rate for 2010 increases to 9%. However, the deduction is reduced if you have oil-related qualified production activities income.
Certain credits not allowed against the AMT. The credit for child and dependent care expenses, nonbusiness energy property credit, mortgage interest credit, and the District of Columbia first-time homebuyer credit are not allowed against the AMT and a new tax liability limit applies. For most people, this limit is your regular tax minus any tentative minimum tax.
Use your 2009 tax return as a guide in figuring your 2010 tax, but be sure to consider the following. Only some of the amounts in the following paragraphs have changed from 2009, but some unchanged amounts are also provided here for your convenience.
Personal exemption and itemized deduction phaseouts. For 2010, taxpayers with AGI above a certain amount will not lose part of their deduction for personal exemptions and itemized deductions. Under current law, these phaseouts will resume in 2011.
IRA deduction expanded. You may be able to take an IRA deduction if you were covered by a retirement plan and your 2010 modified AGI is less than $66,000 ($109,000 if a qualifying widow(er)). If your spouse was covered by a retirement plan, but you were not, you may be able to take an IRA deduction if your 2010 modified AGI is less than $177,000.
Standard mileage rates. The rate for business use of your vehicle is reduced to 50 cents a mile. The rate for use of your vehicle to move is reduced to 16½ cents a mile. The rate of 14 cents a mile for charitable use is unchanged.
Alternative minimum tax (AMT) exemption amount decreased. The AMT exemption amount is decreased to $33,750 ($45,000 for a qualifying widow(er); $22,500 if married filing separately).
Domestic production activities income deduction. The percentage rate for 2010 increases to 9%. However, the deduction is reduced if you have oil-related qualified production activities income.
Certain credits not allowed against the AMT. The credit for child and dependent care expenses, nonbusiness energy property credit, mortgage interest credit, and the District of Columbia first-time homebuyer credit are not allowed against the AMT and a new tax liability limit applies. For most people, this limit is your regular tax minus any tentative minimum tax.
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