by Brian Cody

Created on: December 29, 2009   Last Updated: June 30, 2010

According to the Kiplinger Washington Editors inc, report on the Top (AGI) Adjusted Gross Income, income taxed paid as a %  the following AGI bore the most tax burden;

1) AGI $32,878 bore a 97% of income taxes paid

2) AGI $66,532 bore a 87% of income taxes paid

3) AGI $113,018 bore a 71% of income taxes paid

4) AGI $160,041 bore a 61% of income taxes  paid

5) AGI $410,096 bore a 40% of income taxes paid

So the question become how do the IRS changes for the up coming 2010 tax season help lower the amount of income taxes paid?  There have been several changes and updates to the IRS regulations.  The following is a sample of the most common updates and over looked tax deductions;

State withholding taxes from your paycheck; if you had to pay state taxes last year you can claim the amount of owed taxes on the prior tax years filing.

Make Work Pay Credit:  For a single filing tax person they receive a $400 reduction of their tax bill. For a married filing tax couple their tax bill is reduced by $800.  The AGI phase out for singles are $ 75,000, and for couples the AGI is $150,000.  Utilize IRS form Schedule M.  Make work pay credit reduced payroll tax withholding rate.

If you purchased a new vehicle such as a new car, motorcycle, motor home, or truck after Feb 16,2009 prior to Dec 31,2009,  you can deduct the sales tax on that new purchase up to the first $49,500 of qualified cost.  The AGI phase out begins for single tax payers at $125,000, for married couple a AGI $250,000. The deduction is gone for AGI income level of single tax payers at $135,000 and a AGI $260,000 for couples. Utilize IRS form Schedule L

If your state has no income tax such as Alaska, Florida, New Hampshire, you can claim state sales tax.

If you own Real Estate property are paying property tax you can claim the paid property taxes as a deduction.  A new rule for tax filers who file a standard tax deduction on a non itemized tax filers. You folks can now receive a tax deduction of $500 per single tax payer, $1,000 deduction for married tax filers.  The IRS form you need to fill out is a Schedule L form

Another new rule from the IRS is that tax filers who file a standard deduction form can also claim a causality loss deduction.  The tax filers can add the casualty losses to their standard deduction amount.

The "First time home buyers credit" the credit amount is $8,000 for homes purchase before November  30,2009. 

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