Forefield Presentation Template

National Institute Financial Education Todd Ballenger, CLA toddb@niofe.org www.niofe.org January 26, 2012 2012 Key Numbers Individual Income Tax Planning 2012 Tax Rates 2011 Tax Rates Business Planning Education Planning Protection Planning Estate Planning Government Benefits Retirement Planning Investment Planning 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 Refer a friend To find out more click here Disclaimer The information contained on this website and from any communication related to this website is for information purposes only. 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