Tax Tips of the Week – Take Home Pay Goes Up and Standard Milage for 2010

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Payroll Tax Cut to Boost Take-Home Pay for Most Workers

Millions of workers will see their take-home pay rise during 2011 because the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 provides a two percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid. This reduced Social Security withholding will have no effect on the employee’s future Social Security benefits.

 

Standard Mileage Rates for 2010 tax returns

For 2010, the standard mileage rate for the cost of operating your car for business use is 50 cents per mile.

For 2010, the standard mileage rate for the cost of operating your car for medical reasons or as part of a deductible move is 16.5 cents per mile.

For 2010, the standard mileage rate for the cost of operating your car for charitable purposes remains 14 cents per mile