You May Benefit From Filing Form 1040A or 1040 in 2010(p4)

Due to the following tax law changes for 2010, you may benefit from filing Form 1040A or 1040, even if you normally file Form 1040EZ. See the instructions for Form 1040A or 1040, as applicable.

You may be able to take the EIC if:

• Three or more children lived with you and you earned less than $43,352 ($48,362 if married filing jointly),
• Two children lived with you and you earned less than $40,363 ($45,373 if married filing jointly), or
• One child lived with you and you earned less than $35,535 ($40,545 if married filing jointly).

The maximum adjusted gross income (AGI) you can have and still get the credit also has increased. You may be able to take the credit if your AGI is less than the amount in the above list that applies to you. The maximum investment income you can have and still get the credit is still $3,100.

The maximum adoption credit has increased to $13,170. The credit is now refundable and is claimed on Form 1040. See Form 8839.

You generally cannot claim the credit for a home you bought after April 30, 2010. However, you may be able to claim the credit if you entered into a written binding contract before May 1, 2010, to buy the home before July 1, 2010, and actually bought the home before October 1, 2010. Also, certain members of the Armed Forces and certain other taxpayers have additional time to buy a home and take the credit. See Form 5405.