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Current
Tax Information...
2012 Mileage Rate
Changes 2012
2011
2010
Taxpayers who do not itemize
their deductions are entitled to a standard deduction. The amount of the
standard deduction varies according to the taxpayer's filing status. 2011 Standard
Deduction Married, Filing
Jointly $11,600 Single $5,800 Married, Filing
Separately $5,800 Head of Household $8,500 Blind or over 65 and
married add: $1,150 Blind or over 65 and
single/head of household add: $1,450 Individuals are entitled to a
personal exemption amount. 2011 Exemption Amount 2011 Exemption Amount $3,700 Personal Exemption
Phaseout Married, Filing
Jointly N/A Single N/A Married, Filing
Separately N/A Head of Household N/A Here are the 2011 tax tables,
which make it easy to find which marginal tax bracket you are in: These tables are for single
filers who are not surviving spouses or heads of household: Taxable Income Tax $0 $8,500 10% of taxable income $8,500 $34,500 $850 plus 15% of excess over $8,500 $34,500 $83,600 $4,750 plus 25% of excess over $34,500 $83,600 $174,400 $17,025 plus 28% of excess over $83,600 $174,400 $379,150 $42,449 plus 33% of excess over $174,400 $379,150+ $110,016.50 plus 35% of excess over $379,150 These tables are for married
filing jointly or surviving spouses: Taxable Income Tax $0 $17,000 10% of taxable income $17,000 $69,000 $1,700 plus 15% of excess over $17,000 $69,000 $139,350 $9,500 plus 25% of excess over $69,000 $139,350 $212,300 $27,087.50 plus 28% of excess over $139,350 $212,300 $379,150 $47,513.50 plus 33% of excess over $212,300 $379,150+ $102,574 plus 35% of excess over $379,150 These tax tables are for those
considered Heads of Household: Taxable Income Tax $0 $12,150 10% of taxable income $12,150 $46,250 $1,215 plus 15% of excess over $12,150 $46,250 $119,400 $6,330 plus 25% of excess over $46,250 $119,400 $193,350 $24,617.50 plus 28% of excess over $119,400 $193,350 $379,150 $45,323.50 plus 33% of excess over $193,350 $379,150+ $106,637.50 plus 35% of excess over $379,150 These are tax tables for those
filing as Married Filing Separately: Taxable Income Tax $0 $8,500 10% of taxable income $8,500 $34,500 $850 plus 15% of excess over $8,500 $34,500 $69,675 $4,750 plus 25% of excess over $34,500 $69,675 $106,150 $13,543.75 plus 28% of excess over $69,675 $106,150 $189,575 $23,756.75 plus 33% of excess over $106,150 $189,575+ $51,287 plus 35% of excess over $189,575 2011 Mileage Rate
Changes Purpose Rates 1/1 through
6/30/11 Rates 7/1
through 12/31/11 Business 51 55.5 Medical/Moving 19 23.5 Charitable 14 14 2011 FICA Rates: Employee
Social Security 2011 FICA Rate: 4.2% (in 2011 the employee rate does
not match the employer one) Employer
Social Security 2011 FICA Rate: 6.2% Employee
Medicare 2011 FICA Rate: 1.45% Employer
Medicare 2011 FICA Rate: 1.45% The
maximum amount of wages subject to the social security tax for 2011
is $106,800. There is no limit on the amount of wages subject to the
Medicare tax. The below 2010 tax tables are
the projected federal income tax brackets for 2010: Here are some other important non-tax
bracket-related updates (until these are made official by the IRS, these
are merely predictions by the experts). As expected, no (or very small)
changes: Tax Year 2010
Personal Exemptions and Deductions Personal Exemption
$3,650 Deductions Standard
Blind/Elderly Single 5,700/1,400 Head of Household
8,400/1,400 Married 11,400/1,100 Standard Deduction
for Dependents - $950 Traditional
or Roth IRA: $5,000 ($6,000 if age 50 or older) NO
LIMIT on income for ROTH CONVERSION SEP
IRA: $49,000 SIMPLE
IRA: $11,500 ($14,000 if age 50 or older) 401(k)
plan: $16,500 ($22,000 if age 50 or older) 403(b)
plan: $16,500 ($22,000 if age 50 or older) 457
plan: $16,500 ($22,000 if age 50 or older) Defined
Contribution Pension: $49,000 Annual
gift tax exclusion is $13,000 Estate
tax exclusion is removed SUBJECT TO CHANGE
2010
optional standard mileage rates Beginning
on Jan. 1, 2010, the standard mileage rates for the use of cars, vans,
pickups or panel trucks is: ·
0.50 cents per mile for business miles driven ·
0.165 cents per mile for medical or moving ·
0.14 cents per mile for charitable organizations Estate
Tax Repealed - The
federal estate tax is scheduled to be eliminated for estates of
individuals who die in 2010. We expect Congress to act in 2009 to keep
the tax alive. Roth
IRA Conversions - Starting
in 2010, individuals with more than $100,000 of modified Adjusted Gross
Income are free to switch a traditional IRA to a Roth IRA. For
conversions in 2010, taxpayers can spread the tax due over two years (or
report all of the conversion in 2010).
If elected, half the tax will be due in 2011 and the remaining
half will be payable in 2012. State
and Local Sales Tax Deduction - The
opportunity for itemizers to choose to deduct their state sales tax
payments instead of deducting their state and local income taxes ends
after 2009, unless Congress acts to extend it. Educators'
Deduction, Tuition and Fees Deduction, Direct Donations of IRAs to
Charity and Additional Standard Deduction for Property Taxes are
all set to laps after 2009, unless Congress acts to extend it. Single
Filing Status (Tax
Rate Schedule X) 10%
on income between $0 and $8,350 15%
on the income between $8,350 and $33,950; plus $835 25%
on the income between $33,950 and $82,250; plus $4,675 28%
on the income between $82,250 and $171,550; plus $16,750 33%
on the income between $171,550 and $372,950; plus $41,754 35%
on the income over $372,950; plus $108,216 Married
Filing Jointly or Qualifying Widow(er) Filing Status (Tax
Rate Schedule Y-1) 10%
on the income between $0 and $16,700 15%
on the income between $16,700 and $67,900; plus $1,670 25%
on the income between $67,900 and $137,050; plus $9,350 28%
on the income between $137,050 and $208,850; plus $26,637.50 33%
on the income between $208,850 and $372,950; plus $46,741.50 35%
on the income over $372,950; plus $100,894.50 Married
Filing Separately Filing Status (Tax
Rate Schedule Y-2) 10%
on the income between $0 and $8,350 15%
on the income between $8,350 and $33,950; plus $835 25%
on the income between $33,950 and $68,525; plus $4,675 28%
on the income between $68,525 and $104,425; plus $13,318.75 33%
on the income between $104,425 and $186,475; plus $23,370.75 35%
on the income over $186,475; plus $50,447.25 Head
of Household Filing Status (Tax
Rate Schedule Z) 10%
on the income between $0 and $11,950 15%
on the income between $11,950 and $45,500; plus $1,195 25%
on the income between $45,500 and $117,450; plus $6,227.50 28%
on the income between $117,450 and $190,200; plus $24,215 33%
on the income between $190,200 and $372,950; plus $44,585 35%
on the income over $372,950; plus $104,892.50 Single: $5,700 Head of Household: $8,350 Married Filing Joint: $11,400 Married Filing Separately: $5,700 Qualifying Widow/Widower: $11,400 Dependent: $950-$5,700 Additional Amount if Blind: $1,100 Additional Amount if age 65 or older:
$1,100 Personal Exemption - Per taxpayer and
dependent: $3,650 Payroll
Tax Credit - For
2009 and 2010, Congress gave workers a credit of 6.2 percent of their
earned income, capped at $400 for single filers and $800 for joint
filers. Sales
Tax Deduction for New Vehicles- Buyers
of new vehicles can deduct the sales tax paid on the purchase, even if
they dont claim sales taxes as itemized deductions. Indexed
Tax Brackets - Thanks
to higher inflation in the past year, the 10 percent, 15 percent, 25
percent, 28 percent, 33 percent and 35 percent tax brackets all kick in
at approximately 5 percent higher levels of income than in 2008. Section
179 Expense Deduction - The
maximum amount of equipment placed in service in 2009 that businesses
can expense stays at $250,000. And the annual investment limit remains
$800,000. Tax
Credit for College Tuition - For
2009 and 2010, the Hope credit is replaced by a new credit of up to
$2,500 per student a year for four years of college, not just the first
two years. It now also covers the cost of books, and begins to phase out
at $80,000 of Adjusted Gross Income for single filers and $160,000 for
joint filers Earned
Income Tax Credit (EITC) - For
families with three or more children, the maximum Earned Income Tax
Credit for 2009 and 2010 rises by $628.50. And the phase-out of the
credit for joint filers starts at higher income levels in 2009 and 2010,
allowing more of them to claim the credit. Higher
Income Limits for Deductible IRAs and for Roth IRAs - If
you are covered by a retirement plan at work, you can take a full IRA
deduction in 2009 if your modified Adjusted Gross Income is less than
$89,000 (married filing jointly) or $55,000 (single or head of
household). State
Tax Exemption - In
2009, the federal estate tax exemption rises to $3,500,000 from its 2008
level of $2,000,000. Credit
for Residential Energy-Efficient Property - The
credit for 30 percent of the cost of installing solar water heating
equipment, solar electric equipment, geothermal heat pumps or small wind
turbines in your primary residence or a second home is no longer limited
to $2,000 after 2008. But the credit for fuel cell property still cannot
exceed $500 per half-kilowatt capacity. Credit
for Energy-Saving Home Improvements - The
old 10 percent tax credit of the cost of energy-saving home improvements
is increased to 30 percent for 2009 and 2010, up to a maximum of $1,500
in the two-year period. It applies to qualified skylights, windows,
outside doors, biomass fuel stoves and high-efficiency furnaces, water
heaters and central air conditioners. In addition, the dollar limits on
the particular type of improvement, such as a $200 cap on the credit for
windows, are repealed. Converting
a Second Home to a Primary Home If
you convert a second home into a principal residence after 2008, you may
not be able to exclude all of your gain. A portion of the gain on a
subsequent sale of the home will be ineligible for the home-sale
exclusion of up to $500,000, even if the seller meets the two-year
ownership-and-use tests. Partial
Exclusion for Unemployment Benefits For
2009, the first $2,400 of unemployment benefits you receive is tax-free.
Maximum contributions vary by the type of
retirement plan: Traditional or Roth IRA: $5,000 ($6,000 if
age 50 or older) SEP IRA: $49,000 SIMPLE IRA: $11,500 ($14,000 if age 50 or
older) 401(k) plan: $16,500 ($22,000 if age 50 or
older) 403(b) plan: $16,500 ($22,000 if age 50 or
older) 457 plan: $16,500 ($22,000 if age 50 or
older) Defined Contribution Pension: $49,000 Defined Benefit Pension: $195,000 Annual gift tax exclusion is $13,000 Estate tax exclusion is $2,000,000
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