New Federal Income Tax Laws for 2011, 2012
72New Federal Income Tax Laws
Are you up-to-date on the new tax laws that will be imposed for 2011 and 2012? The changes that have been put into place could save you a lot of money.
First of all the standard deductions will be increased for most taxpayers. The increased amounts are reflected by the status you file for example:
- Married couples filing jointly will be able to take a standard deduction of $11,600.
- For Singles and Married couples filing separately they can take a standard deduction of $5,800.
Other changes you can expect in this year are:
Lower Tax Rates Extended
The 2010 Tax Relief Act extends through the end of 2012 the tax rates in effect in 2010. They had been scheduled to increase to the higher tax rates that were in effect prior to 2001.
Estate Tax
For individuals dying after 2010, the federal estate tax continues with a $5 million exemption and a 35 percent maximum rate. The current federal estate tax rules are scheduled to end after 2012.
Lower Capital Gains and Dividend Tax Rates Extended Through 2012
The tax rate reductions for long-term capital gains remain in effect for 2011 and 2012.
Child Tax Credit
The credit of $1,000 per eligible child continues through 2012. The child tax credit was extended by two years by the 2010 Tax Relief Act.
Payroll Tax Credit
Starting in 2011, the partial credit for payroll taxes paid by employers is no longer available.
Section 179 Expense Deduction
The $500,000 maximum amount of equipment placed in service that businesses can expense and the annual investment limit of $2,000,000 remain in effect for 2011.
Tax Credit for College Tuition
The American Opportunity tax credit remains in effect through 2012.
Earned Income Tax Credit (EITC)
Temporary increases in the earned income tax credit for filers with three or more children and the higher income levels for the phaseout of the credit have been extended through the end of 2012.
Mortgage Insurance Premiums
The special itemized deduction for mortgage insurance premiums paid on mortgages taken out after 2006 expires on Dec. 31, 2010.
Credit for Energy-Saving Home Improvements
The 30 percent tax credit of the cost of energy-saving home improvements was extended by the Tax Relief Act of 2010 through 2011.
401k-Retirement Accounts
You can contribute more in your 401K-retirement account and your IRA account before having to pay tax on it.
IRS Milieage Tax Deduction
The IRS mileage deduction rate has increased.
Gift Tax
The gift tax exclusion has increased by $1,000.
These changes are just some of the new tax rules. To make sure you are benefiting from all of the changes that will be put into place you should prepare your taxes online with TurboTax. Online tax filing can be a great help in keeping you up to date on the ever changing Federal tax laws.
Most services ask you a series of questions based on you’re filing status and tax situation to make sure all of the necessary tax forms have been completed and are accurate.
Preparing your tax return is stressful enough, wouldn’t it be great to have a guarantee that your return is accurate and you have been guaranteed the biggest refund possible according to the new laws and amounts that can change every single year.
TurboTax Online does just that. They are a safe and secure service to help ease the process of filing your tax return. Their detailed system makes sure you have claimed all of the deductions available to you while checking your return for errors to guarantee the accuracy and reducing your risk of an audit.
Visit TurboTax online today to learn more about the upcoming new tax laws and start preparing your taxes today.
New Tax Laws
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can you get earned income with two children
What day can we file for a tax refund
go to IRS.gov and look at publication 17 that will answer a lot of questions about filing your taxes.
Can I still deduct Mileage and Cell Phone from my taxes?
$G-o-v-e-r-n-m-e-n-t If you can spell it you deserve it. Considering all the immigrants whom can't speak english that end up sending the money to their home countries anyway,Why are people calling entrepenuers moochers
How much can you earn without filing income taxes?
do the dependents have to be on your insurance
you do not get tax deduction for being an adequate father by paying child support. You should not get rewarded for taking care of your kids through taxes. The reward you get is knowing you are doing the right thing.
I gross $4000.00, I pay $1800 a month on childsupport/ alimony, i have no tax credits so i have to pay $6000 to $10,000 every year back to the IRS. I make monthly payments of $500 to them. I have to eat all month, gas, rent, etc. Why cant I use my childsupport payments as a tax deduction? My ex doesnt even have to report it as income. Why???
I think my worthless ex wife has someone else claim my son on there takes so she can get money, isnt that tax fraud?
Get a job and quit mooching from honest taxpayers. Where do you think government money comes from?
i have two dependent, no income and unemployed, can i file a tax for this year? and how?
My family have 6 members and my question is about gasoline receipts, so far that know only people with business o who receive a 1099 can reports those types of expenses.
Thank you.
I resent the way the feds can change laws, and we know nothing about it untill it comes time to file income taxes, or when our paycheck amount changes with no explanation. I think I should be able to control my own finances as I see fit. I do realize that we all have to pay taxes, but I would like to decide for myself what percetage comes out of my monthly paycheck. Big gov't. should do their job and leave small business and small wage-earners alone. They do not need to intrude into every aspect of our lives.
Bree,
I filed single head of house hold. I got alot more money last year. Dont file seperate, you loose your earned income credit
DOES ANYONE KNOW IF YOUR MARRIED BUT SEPARATED DO YOU HAVE TO FILE TOGETHER OR CAN YOU STILL FILE SEPARATELY?
My son lived with me most of 2010 and went to high school and graduated and went to College. He is 18 years old. Can he claim him self and can I claim him too ,he says there is a college rebate or something he can get.He will get over $1000.00. Is he doing it right ? He did work a little.
50/mile california
but you need to go to your state franchise tax board site to get your 2010 mileage rate
i show no income for 2010 no unemployment checks can i recieve goverment money
You can claim 3 children for "tax credit."
does anyone know what the mileage rate is for 2011?
will you be able to fill three children and get the tax credit for each one or is it just two children?
Jenn 3 months ago
I paid about $2300 in mortgage int property tax n mortgage ins this year for the 4 months i owned my new home why does this amount paid not increase my tax refund