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Individual Income Tax Planning
Adoption credit
| | 2011 | 2012 |
| Maximum credit |
$13,360 |
$12,650 |
| Phaseout threshold amount |
$185,210 |
$189,710 |
| Completed phaseout amount after |
$225,210 |
$229,710 |
Alternative Minimum Tax (AMT)
| Maximum AMT exemption amount | 2011 | 2012 |
| Married filing jointly or surviving spouse |
$74,450 |
$45,000 |
| Single or head of household |
$48,450 |
$33,750 |
| Married filing separately |
$37,225 |
$22,500 |
| AMT income exemption phaseout threshold | 2011 | 2012 |
| Married filing jointly or surviving spouse |
$150,000 |
$150,000 |
| Single or head of household |
$112,500 |
$112,500 |
| Married filing separately |
$75,000 |
$75,000 |
Charitable deductions
| Use of auto | 2011 | 2012 |
| Deductible standard mileage rate |
$0.14 |
$0.14 |
| Charitable fundraising "insubstantial benefit" limitation | 2011 | 2012 |
| Low-cost article (re: unrelated business income) |
$9.70 |
$9.90 |
| Gifts to donor in return for contribution | 2011 | 2012 |
| Token gift maximum cost1 |
$9.70 |
$9.90 |
| Minimum contribution amount1 |
$48.50 |
$49.50 |
| 2% threshold amount2 |
$97 |
$99 |
1 Contribution is fully deductible if minimum contribution amount is met and cost of token gift does not exceed maximum
2 Charitable contribution is fully deductible if the benefit received by the donor doesn't exceed the lesser of the threshold amount or 2% of the amount of the contribution
Child tax credit
| | 2011 | 2012 |
| Maximum credit per qualifying child |
$1,000 |
$1,000 |
| Phaseout -- credit reduced by $50 for each $1,000 or fraction thereof of MAGI over: | 2011 | 2012 |
| Single |
$75,000 |
$75,000 |
| Married Filing Jointly |
$110,000 |
$110,000 |
| Married Filing Separately |
$55,000 |
$55,000 |
| Refundability -- up to specified percentage of earned income in excess of specified amount | 2011 | 2012 |
| Percentage |
15% |
15% |
| Amount |
$3,000 |
$3,000 |
Classroom expenses of elementary and secondary school teachers
| | 2011 | 2012 |
| Maximum above-the-line deduction |
$250 |
N/A |
Earned income tax credit (EITC)
| | 2011 | 2012 |
| Excessive investment income limit ("disqualified income limit") |
$3,150 |
$3,200 |
| Maximum amount of EITC per number of children | 2011 | 2012 |
| 0 children |
$464 |
$475 |
| 1 child |
$3,094 |
$3,169 |
| 2 children |
$5,112 |
$5,236 |
| 3 or more children |
$5,751 |
$5,891 |
| Maximum amount of earned income on which EITC is based (earned income over this amount but under the threshold phaseout amount will not change the amount of the credit received) | 2011 | 2012 |
| 0 children |
$6,070 |
$6,210 |
| 1 child |
$9,100 |
$9,320 |
| 2 or more children |
$12,780 |
$13,090 |
| Threshold phaseout amount for joint filers per number of children | 2011 | 2012 |
| 0 children |
$12,670 |
$12,980 |
| 1 child |
$21,770 |
$22,300 |
| 2 children |
$21,770 |
$22,300 |
| 3 or more children |
$21,770 |
$22,300 |
| Threshold phaseout amount for other filers per number of children | 2011 | 2012 |
| 0 children |
$7,590 |
$7,770 |
| 1 child |
$16,690 |
$17,090 |
| 2 children |
$16,690 |
$17,090 |
| 3 or more children |
$16,690 |
$17,090 |
| Completed phaseout amount for joint filers per number of children | 2011 | 2012 |
| 0 children |
$18,740 |
$19,190 |
| 1 child |
$41,132 |
$42,130 |
| 2 children |
$46,044 |
$47,162 |
| 3 or more children |
$49,078 |
$50,270 |
| Completed phaseout amount for other filers per number of children | 2011 | 2012 |
| 0 children |
$13,660 |
$13,980 |
| 1 child |
$36,052 |
$36,920 |
| 2 children |
$40,964 |
$41,952 |
| 3 or more children |
$43,998 |
$45,060 |
Expatriation
| | 2011 | 2012 |
| An individual with "average annual net income tax" of more than this amount for the five taxable years ending before his or her loss of citizenship is a covered expatriate for the purposes of IRC §877A(g)(1) |
$147,000 |
$151,000 |
| *IRC §877A(3) exclusion amount |
$636,000 |
$651,000 |
Foreign earned income
| | 2011 | 2012 |
| Exclusion amount |
$92,900 |
$95,100 |
Itemized deductions
| | 2011 | 2012 |
| Itemized deductions threshold phaseout amount for MFS: |
N/A |
N/A |
| Itemized deductions threshold phaseout amount for all others: |
N/A |
N/A |
Kiddie tax
| Unearned income limit | 2011 | 2012 |
| Amount exempt from tax |
$950 |
$950 |
| Additional amount taxed at child's rate |
$950 |
$950 |
| Unearned income over this amount taxed at parent's rate |
$1,900 |
$1,900 |
| | 2011 | 2012 |
| Election to include child's income on parent's return -- child's gross income requirement |
$950 - $9,500 |
$950 - $9,500 |
| | 2011 | 2012 |
| AMT exemption for child subject to kiddie tax: |
Lesser of $6,800 + child's earned income or $48,450 |
Lesser of $6,950 + child's earned income or $33,750 |
Making Work Pay tax credit
| Maximum credit | 2011 | 2012 |
| Filing status other than married filing jointly |
N/A1 |
N/A2 |
| Married filing jointly |
N/A1 |
N/A2 |
1 Credit not extended, but related benefit provided by one-year 2% reduction in employee Social Security payroll taxes (also applies to self-employment tax of self-employed individuals)
2 The temporary 2% reduction in employee Social Security payroll taxes and self-employment tax was extended through February of 2012 by the Temporary Payroll Tax Cut Continuation Act of 2011
| Income phaseout: Other than married filing jointly | 2011 | 2012 |
| Phaseout threshold amount |
N/A |
N/A |
| Completed phaseout amount after |
N/A |
N/A |
| Income phaseout: Married filing jointly | 2011 | 2012 |
| Phaseout threshold amount |
N/A |
N/A |
| Completed phaseout amount after |
N/A |
N/A |
Nanny tax
| | 2011 | 2012 |
| Domestic employee coverage threshold |
$1,700 |
$1,800 |
Personal exemption amount
| | 2011 | 2012 |
| Personal exemption amount |
$3,700 |
$3,800 |
| Personal exemption amount for taxpayers with AGI exceeding maximum phaseout threshold |
N/A |
N/A |
| Married filing jointly | 2011 | 2012 |
| Phaseout threshold amount |
N/A |
N/A |
| Completed phaseout amount after |
N/A |
N/A |
| Head of household | 2011 | 2012 |
| Phaseout threshold amount |
N/A |
N/A |
| Completed phaseout amount after |
N/A |
N/A |
| Single | 2011 | 2012 |
| Phaseout threshold amount |
N/A |
N/A |
| Completed phaseout amount after |
N/A |
N/A |
| Married filing separately | 2011 | 2012 |
| Phaseout threshold amount |
N/A |
N/A |
| Completed phaseout amount after |
N/A |
N/A |
"Saver's Credit"
| Elective Deferrals and IRA Contributions by Certain Individuals | 2011 | 2012 |
| Maximum credit amount |
$1,000 |
$1,000 |
| Applicable percentage of 50% applies to AGI | 2011 | 2012 |
| Joint Return |
$0 - $34,000 |
$0 - $34,500 |
| Head of Household |
$0 - $25,500 |
$0 - $25,875 |
| Other |
$0 - $17,000 |
$0 - $17,250 |
| Applicable percentage of 20% applies to AGI | 2011 | 2012 |
| Joint Return |
$34,001 - $36,500 |
$34,501 - $37,500 |
| Head of Household |
$25,501 - $27,375 |
$25,876 - $28,125 |
| Other |
$17,001 - $18,250 |
$17,251 - $18,750 |
| Applicable percentage of 10% applies to AGI | 2011 | 2012 |
| Joint Return |
$36,501 - $56,500 |
$37,501 - $57,500 |
| Head of Household |
$27,376 - $42,375 |
$28,126 - $43,125 |
| Other |
$18,251 - $28,250 |
$18,751 - $28,750 |
| Applicable percentage of 0% applies to AGI | 2011 | 2012 |
| Joint Return |
Over $56,500 |
Over $57,500 |
| Head of Household |
Over $42,375 |
Over $43,125 |
| Other |
Over $28,250 |
Over $28,750 |
Standard deductions
| | 2011 | 2012 |
| Married filing jointly or surviving spouse |
$11,600 |
$11,900 |
| Head of household |
$8,500 |
$8,700 |
| Single |
$5,800 |
$5,950 |
| Married filing separately |
$5,800 |
$5,950 |
| Dependent |
Greater of $950, or $300 + earned income |
Greater of $950, or $300 + earned income |
| Additional deduction for aged or blind (single or head of household) |
$1,450 |
$1,450 |
| Additional deduction for aged or blind (all other filing statuses) |
$1,150 |
$1,150 |
Standard mileage rates
| | 2011 | 2012 |
| Use of auto for business purposes (cents per mile) |
$0.51 for first half of 2011; $0.555 for second half |
$0.555 |
| Use of auto for medical purposes (cents per mile) |
$0.19 for first half of 2011; $0.235 for second half |
$0.23 |
| Use of auto for moving purposes (cents per mile) |
$0.19 for first half of 2011; $0.235 for second half |
$0.23 |
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