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2011 Personal Income Tax Information

c.ellis — Fri, 03 Feb 2012 20:19:28 +0000

Tax Information For 2011

Tax Rates

Married Filing Jointly	Most Single Filers	Tax Rate
$1-$16,750 $16,750-$68,000 $68,000-$137,300 $137,300-$209,250 $209,250-$373,650 Over $373,650	$1-$8,375 $8,375-$34,000 $34,000-$82,400 $82,400-$171,850 $171,850-$373,650 Over $373,650	10% 15% 25% 28% 33% 35%

Standard Deductions

Single
Married Filing Jointly (MFJ)
Married Filing Separate (MFS)
Head of Household (HOH)
Qualifying Widow(er) (QW)

$5,800
$11,600
$5,800
$8,500
$11,600

Age 65 or older an additional $1,100 for MFJ, MFS, and QW, and an additional $1,400 for Single and HOH.

Personal and Dependent Deduction

$3,700

Annual Gift Tax Exclusion

$13,000
$26,000 Married Individuals

Traditional and Roth IRA Contribution Limits

$5000
$6,000 (Age 50 and over)

Child Tax Credit

The maximum credit is $1,000 per qualifying child. The credit begins to phase out for single individuals whose modified adjusted gross income is $75,000, $110,000 for married individuals filing a joint return, and $55,000 for married individuals filing a separate return.

Education Credits

American Opportunity Credit

The maximum credit is $2,500 per eligible student for qualified tuition and related expenses. The credit is not available for single individuals whose modified adjusted gross income exceeds $90,000, and $180,000 for married individuals filing a joint return.

Lifetime Learning Credit

The maximum credit is $2,000 per return for qualified tuition and related expenses. The credit is not available to single individuals whose modified adjusted gross income is more than $61,000, and $122,000 for married individuals filing a joint return.

Standard Mileage Rate

51 cents per mile for business miles driven January 1 – June 30
55.5 cents per mile for business miles driven July 1 – December 31
19 cents per mile for medical or moving miles driven January 1 – June 30
23.5 cents per mile for medical or moving miles driven July 1 – December 31
14 cents per mile for miles driven for charitable service

Earnings and Social Security Benefits

Full retirement age or older	No limit on earnings
Under full retirement age	$1 will be deducted for each $2 you earn over $14,640
In year you reach full retirement age.	Benefits reduced $1 for every $3 you earn above $38,880

Understanding Your 1099-K

c.ellis — Fri, 03 Feb 2012 20:18:00 +0000

The 1099-K is a new IRS information return for reporting electronic financial transactions to improve voluntary tax compliance. You should receive a 1099-K by the end of January, 2012, if you received payments from merchant cards or third party payment networks, e.g., Paypal or Google checkout at or above the minimum reporting thresholds: gross payments that exceed $20,000, AND more than 200 such transactions.

Amounts reported on the 1099-K should be included on Schedule C – Profit or Loss From Business.

IRS Kicks Off 2012 Tax Season

c.ellis — Fri, 03 Feb 2012 19:13:56 +0000

The IRS opened the 2012 tax filing season by announing that taxpayers have until Tuesday, April 17 to file their tax returns and pay any tax due. April 15 falls on a Sunday, and Emancipation Day, a holiday observed in the District of Columbia, falls this year on Monday, April 16. Taxpayers requesting an extension will have until October 15, to file their 2011 tax returns.

The IRS encourages taxpayers to e-file as it is the best way to ensure accurate returns and get their refunds faster.

Deduct Some Job Seeking Expenses

c.ellis — Sat, 22 Jan 2011 20:15:45 +0000

Benefits for Job Seekers
If you are searching for a new job, you may be able to deduct some of the expenses on your tax return.
The following will help you determine if you can deduct costs associated with your job search:

- The expenses must be spent on a job search in your current occupation. Expenses incurred while searching for a job in a new occupation are not deductible expenses. Deductible expenses also include the cost of preparing and mailing your resume to prospective employers.

- Employment and outplacement agency fees that are paid may be deducted as long as they are for a job in your current occupation. If you deduct these expenses and your employer reimburses you in a later year, you must then include the amount reimbursed as income.

- If you travel to a new area to look for a job in your current occupation, you may be able to deduct travel expenses as long as the trip was primarily to look for a new job.

You cannot deduct job search expenses if there is a substantial break between jobs, or if you are looking for a job for the first time.

Tax Incentive to Hire Unemployed Bradenton Workers

c.ellis — Sat, 22 Jan 2011 20:15:00 +0000

Benefits to Aid Employers

Employers that hire employees who were previously unemployed or only working part time may qualify for a 6.2% payroll tax incentive. This incentive will exempt them from their share of Social Security taxes on wages paid to these employees after March 18, 2010. The employees must be hired after February 3, 2010, and before January 1, 2011. This reduced tax will have no effect on the employee’s future Social security benefits. Employers will still need to withhold the employee’s 6.2% share of Social Security taxes, and the employer and employee shares of Medicare taxes remains unchanged.

In addition, employers may claim an additional general business tax credit of up to $1,000 per employee, for each employee retained for a least one year.

Recently Married Bradenton Taxpayers

phogan — Sat, 22 Jan 2011 20:14:45 +0000

If you got married during the tax year or plan to, there are a few things you should do to avoid problems at tax time. If you are a newlywed, here are a few things to keep in mind:

- Report any name changes to the Social Security Administration so your name and social security number will match when you file your tax return. File out Form SS-5-Application for a Social Security Card. The form is available on socialsecurity.gov, local offices, or by calling (800)772-1213.

- If you and your spouse work, your combined income may place you in a higher tax bracket. You can use the IRS Withholding Calculator available on IRS.gov to help you in determining the correct withholding for your new filing status. If the amount of tax withheld needs to be changed, you will need to complete a W-4 – Employee’s Withholding Allowance Certificate, which is also available on IRS.gov.

- Be sure to notify the IRS, your employer, and the US Postal Service of any address changes in Bradenton or Sarasota.