1-Secure your tax records from identity theft: Identify theft occurs when someone uses your name, SSN, or other identifing information, without your permission, to commit fraud or other crimes. An identity thieft may use your SSN to get a job or may file a tax return using your SSN to receive a refund.
To reduce your risk:
If the tax records are not currently affected by identity theft but you think you are at risk due to alost or stolen purse or wallet, questionable credit card activity or credit report, etc., contact the IRS Identity Protection Specialized Unit at 1-800-908-4490 or submit Form 14039.
2-Foregin source income: If you are a U.S. citizen without income from sources outside the United States (foreign income), you must report all such income on your tax return unless it is exempt by U.S. law. This is true whether you reside inside or outside the United States and whether or not you receive a Form W-2 or Form 1099 from the foreign payer. This applies to earned income (such as wages and tips) as well as unearned income (such as interest, dividents, capital gains, rents and royalties).
If you reside outside the United States, you may be able to exclude part or all of your foreign source earned income.
3-prepare e-file mandate: A new law requires some paid preparers to e-file returns they prepare and file. Your preparer may make you aware of this requirements and the options available to you.
4-Standard mileage rates: The 2011 rate for business use of car is 51 cents a mile for miles driven before July 1,2011, and 551/2 cents for a mile for miles driven after June 30,2011.
The 2011 rate for use of your car to move is 19 cents a mile for miles driven driven before July 1,2011, and 231/2 cents for a mile for miles driven after June 30,2011.
Standard deduction incresed: The standard deduction for some taxpayers who do not itemize their deductions on Schedule A (Form 1040) is higher for 2011than it was for 2010. The amount depends on your filling status.
Exemption amount: The amount you can deduct for each exemption has increased. It was $3,650 for 2010. It is $3,700 for 2011.
Self-employed health insurance deduction: This deduction is no longer allowed on Schedule SE (Form 1040). However, you can still take it on form 1040, line 29.
5-Repayment of first-time homebuyer credit: If you have to repay the credit, you may be able to do so without attaching Form 5405.
6-Making work pay credit: The making work pay credit has expired. You cannot claim it on your 2011 return. Schedule M is no longer in use.
