|
 |
Van Vorst Newsletter
Our newsletter has a brief overview of the new tax legislation and some perspective on how it could affect your personal and business tax planning.
|
| Tax Legislation
Chronical of tax legislation and their effects
on your personal and business tax planning |
|
Taxpayers
Have Until April 17 to File and Pay
This year, taxpayers will have no extra
time beyond the traditional April 17 deadline to file their 2011
returns and pay any taxes due. An extension until October 15,
2012 may be filed but all tax is due April 17, 2012 |
|
Highlights of 2011 Tax Law Changes
Internal Revenue Bulletin - Taxpayers will find new changes to income tax, employee plans, estate tax, gift tax, employment tax, etc. |
| Health
Savings Accounts
The Medicare Prescription Drug, Improvement, and Modernization Act of
2003 created a new, tax-advantaged way for certain people to save for
health care expenses. You must be covered by a high-deductible health
plan to open and contribute to a Health Savings Account (HSA). IRS and
Treasury have provided guidance on how HSAs work. Maximum family contribution for 2011 is $6,150.. |
|
IRS Issues Home Sale Exclusion Rules |
| IRS Again Updates Web Item Debunking Frivolous Tax Arguments |
| Small Business Tax Changes |
| Alternative Minimum Tax
|
| Child Tax Credit
|
| Tax Rates
|
| Spouses Must Check Name and
Social Security Number Used on Tax
Returns |
|
Reports and Disclosure by Political Organizations
|
|
Social Security Administration Acts to Protect Benefits for Families of Troops Serving Under Fire |
|
How to Have Federal Taxes
Withheld from Your Social Security Benefit |
| Cost
of Living Adjustment (COLA) |
|
Tax Benefits Relating to Children
|
|
Education Provisions |
|
Retirement Savings Provisions
|
Alternative Minimum Tax
Taxpayers who are able to take advantage of special deductions and credits to substantially reduce their taxes may have to pay an additional tax called the Alternative Minimum Tax.
The exemption amounts
You may have to pay the AMT if your taxable income for regular tax purposes, combined with certain adjustments and tax preferences items is more than:
|
$74,450 if you filing status is Married Filing Jointly |
|
$48,450 if your filing status is Single or Head of Household |
Child Tax Credit
The Child Tax Credit is $1000 per child through 2011
for dependent children under age 17 at
December 31.
Tax Rates
The annual rates for tax year 2011 are 10, 15, 25, 28, 33, and 35 percent
Standard deduction
amounts increased
For 2011 returns the standard deductions are:
|
$5,800 for single filers or married couples
filing separately |
|
$8,500 for
head of household filers
|
|
$11,600 for married couples filing jointly |
Married couples who've been
submitting joint returns for a while will notice their standard deduction
amount has jumped substantially in recent filing years. They can thank
inflation adjustments, as well as tax-law changes initiated in May 2003
and expanded this year, that are designed to help ease the marriage
penalty.
Personal Exemption
The exemption is $3,700 for 2011
Spouses Must Check Name and Number Used on Tax
Returns
The IRS has announced (IR-2000-68) that it is sending letters to 2.4 million taxpayers who filed a joint
return on which the name and identification number for the second spouse listed did not match IRS records.
Those taxpayers, should compare the name and number used on the return with the information on an identification card issued by the Social Security
Administration or the IRS. Without correct names and identification numbers, taxpayers may not be able to claim a personal exemption or the earned income tax credit.
New Law Requires Reports and
Disclosure by Political Organizations
A new law requires section 527 political organizations to file with the IRS an initial notice of their existence, periodic reports on their contributors and expenditures, and an annual return, and requires the organization and the IRS to disclose these documents to the public.
Social Security Administration Acts to Protect Benefits for Families of Troops Serving Under Fire
Military families will not lose valuable government disability benefits because a member of the household has been sent into combat. Jo Anne Barnhart, Commissioner of Social Security, has clarified the Agency’s policies so that individuals receiving Supplemental Security Income
(SSI) disability payments, and Medicaid coverage, can continue to do so even if family income rises due to a mother, father or spouse receiving special combat-related supplements to their military pay.
|
