It's that time of year when we are all hunkering down getting our documents together to file our income taxes. While we recently blogged about proposed changes to the tax code, filing your taxes deals with the laws that are in place here and now.
So, what do you need to know? Marty Abo, CPA at Abo and Company apparently spent last weekend putting together a punch-list of what you need to know for the 2011 tax season:
"From tax credits, exemptions and deductions for individuals and Section 179 expensing for small businesses, here's what Abo and Company thinks you may want to know about the tax changes for 2011."
So, here is your tax season checkup checklist reproduced with permission from the email alerts sent to clients and friends of Abo and Company, Certified Public Accountants - litigation & forensic consultants. www.Aboandcompany.com. I found it valuable and Marty was happy to allow us to share it with you.
From personal deductions to tax credits and educational expenses, many of the tax changes relating to individuals remain in effect through 2012 and are the result of tax provisions that were either modified or extended by the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.
Personal Exemptions - The personal and dependent exemption for tax year 2011 is $3,700, up $50 from 2010.
Standard Deductions - In 2011 the standard deduction for married couples filing a joint return is $11,600, up $200 from 2010 and for singles and married individuals filing separately it's $5,800, up $100. For heads of household the deduction is $8,500, also up $100 from 2010.
The additional standard deduction for blind people and senior citizens is $1,150 for married individuals, up $50, and $1,450 for singles and heads of household, also up $50.
Income Tax Rates - Due to inflation, tax-bracket thresholds will increase for every filing status. For example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $69,000 for a married couple filing a joint return, up from $68,000 in 2010.
Please see full article below for further information.