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Tax Facts

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This page contains tax rates and amounts that are useful for individual tax planning and calculations.   Below are some "Quick Links" to various information on this page.  Use your Back Key to get back to the top of this
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2011 & 2010  Income Tax Rates Personal Exemption $ 
Standard Deductions IRS Mileage Rates  (New rates for 2011 announced)
Social Security Wage Base Social Security Earnings Limits
401(k) & 403(b) Contributions Limit SIMPLE IRA Contributions Limit
IRA Contributions Limit Health Savings Accounts
Defined Contribution Retirement Plans Kiddie Tax Amounts
Long-Term Care Insurance Deductions Estate Tax Rates & Exemptions
Annual Gifting Limits

 

 

 

 

 

 


2011 Income Tax Rates
(Amounts are taxable income)

 

Rate Single Married/Joint Head of Household Married/Separate
10.0% $0-8,500 $0-17,000 $0-12,150
15.0% $8,501-34,500 $17,001-69,000 $12,151-46,250
25.0% $34,501-83,600 $69,001-139,350 $46,251-119,400
28.0% $83,601-174,400 $139,351-212,300 $119,401-193,350
33.0% $174,401-379,150 $212,301-379,150 $193,351-379,150
35.0% Over $379,150 Over $379,150 Over $379,150

 

 

2010 Income Tax Rates
(Amounts are taxable income)
Rate Single Married/Joint Head of Household Married/Separate
10.0% $0-8,375 $0-16,750 $0-11,950 $0-8,375
15.0% $8,376-34,000 $16,751-68,000 $11,951-45,550 $8,376-34,000
25.0% $34,001-82,400 $68,001-137,300 $45,551-117,650 $34,001-68,650
28.0% $82,401-171,850 $137,301-209,250 $117,651-190,550 $68,651-104,625
33.0% $171,851-373,650 $209,251-373,650 $190,551-373,650 $104,626-186,825
35.0% Over $373,650 Over $373,650 Over $373,650 Over $186,825

 

 

 

 

 

 

 




Personal Exemption Amounts
2012 2011
$3,800 $3,700


 

 




Standard Deductions
Filing Status 2012 2011
Single $5,950 $5,800
Married Filing Joint $11,900 $11,600
Head of Household $8,700 $8,500
Married Filing Separately $5,950 $5,800

 




            

IRS Standard Mileage Deduction Rates
Mileage Type 2012

 

 

2011

July 1 - Dec. 31

2011

Jan 1 - June 30

Business * $0.555 $0.555 $0.51
Medical $0.23 $0.235 $0.19
Charitable $0.14 $0.14 $0.14
Qualified Moving $0.23 $0.235 $0.19


                  *  The tax basis of vehicles is reduced by $0.22/mile for business use claimed using the
                      IRS standard mileage rate.  This is the portion considered depreciation.  

 

 




 

Maximum Wages Subject to Social Security Tax
Year Wage Base Maximum Tax
2012 $110,100 $4,624.20
2011   $106,800 $6,621.60

                

Social security deducted from an employee is currently reduced to 4.2% from 6.2%.  This 2%
reduction is currently in effect through February of 2012.  It is generally assumed that Congress
will make this reduction effective for the full year of 2012.  The employer continues to pay the full
6.2%.  All employee wages are subject to Medicare tax withholding at a rate of 1.45%.  The 
employer pays in a matching Medicare tax.

 

 







 Social Security Earnings Limits:
 

2012

2011

If you are at or above full retirement age: No Limit No Limit
During the year you reach your full retirement age: $38,880/yr.  
($3,240/month)
$37,680/yr.
($3,140/month)
Before you reach your full retirement age: $14,640/yr.  
($1,220/month)
$14,160/yr.  
($1,180/month)

        How Does Social Security Apply Earnings Test?  Click Here.





 


Maximum 401(k) & 403(b) Plan Contributions
Year Under Age 50 Age 50 & Over
2012 $17,000 $22,500
2011 $16,500 $22,000
2010 $16,500 $22,000
2009 $16,500 $22,000
2008 $15,500 $20,500
2007 $15,500 $20,500
2006 $15,000 $20,000
2005 $14,000 $18,000
2004 $13,000 $16,000
2003 $12,000 $14,000
2002 $11,000 $12,000
2001 $10,500 $10,500

 

 


Maximum Simple IRA Contributions
Year Under Age 50 Age 50 & Over
2012 $11,500 $14,000
2011 $11,500 $14,000
2010 $11,500 $14,000
2009 $11,500 $14,000
2008 $10,500 $13,000
2007 $10,500 $13,000
2006 $10,000 $12,500
2005 $10,000 $12,000
2004 $9,000 $10,500
2003 $8,000 $9,000
2002 $7,000 $7,500
2001 $6,500 $6,500


 

 

Maximum Contributions To IRA Accounts
(Traditional & Roth IRA's)
Year Under Age 50 Age 50 & Over
2012 $5,000 $6,000
2011 $5,000 $6,000
2010 $5,000 $6,000
2009 $5,000 $6,000
2008 $5,000 $6,000
2007 $4,000 $5,000
2006 $4,000 $5,000
2005 $4,000 $4,500
2004 $3,000 $3,500
2003 $3,000 $3,500
2002 $3,000 $3,500
2001 $2,000 $2,000

 

 

 

 

 

 

 

 

Defined Contribution Retirement Plans
Year Maximum Compensation Maximum Contribution *
2012 $250,000 $50,000
2011 $245,000 $49,000
2010 $245,000 $49,000
2009 $245,000 $49,000
2008 $230,000 $46,000

                                * Additional "catch-up" contributions for plan participants aged 50 or over are
                                   $5,500 for 2012 and 2011.  

 

 

 

 

 


 

 


Health Savings Accounts - Maximum Deductible Contributions
Year 2012 * 2011 * 2010 
Family Coverage $6,250 $6,150 $6,150
Single Coverage $3,100 $3,050 $3,050

      * Account owners born before 1958 can contribute an additional $1,000 for 2012
          ($1,000 for 2011 if born before 1957).
      

 

 

 

Deductions For Long-Term Care Insurance
Age of Insured  2012 2011
71 Or Older $4,370 $4,240
61 - 70 $3,500 $3,390
51 - 60 $1,310 $1,270
41 - 50 $660 $640
40 Or Younger $350 $340

 

 

 

 

"Kiddie Tax" on Investment Income*

Investment Income Tax Rate

2011

2010

Tax Free Up to $950 Up to $950
Child's Tax Rate $951 to $1,900 $951 to $1,900
Parent's Top Tax Rate Over $1,900 Over $1,900

What is "Kiddie Tax" and who does it apply to?
The Kiddie Tax rules are part of the tax code that basically dictates what tax rates dependent children will pay on investment income. As shown in the chart above, dependent children's investment income over $1,900 will be taxed at their parent's top tax rate. Dependent children (including full time students up to the age of 23) who have investment income (interest, dividends, capital gains, etc.) pay income tax at varying rates depending on the level of earned and unearned investment income.  Prior to 2008, the "Kiddie Tax" was only an issue through age 18.  For 2008 and beyond, it can apply to a full-time student through age 23.  Be careful if you are considering transferring assets to a dependent child in the hopes of getting the benefit of lower tax rates.  

 

 

 

 

Maximum Annual Gifts Allowed - No Gift Tax Returns Required

2012 2011
$13,000 $13,000

        Note:  A married couple can double the above amounts by jointly 
        gifting to the same person.

 

 


Estate Tax Rates & Exemptions
Year Top Estate Tax Rate Exempt Estate
(Upper Limit)
2001 55% $675,000
2002 50% $1,000,000
2003 49% $1,000,000
2004 48% $1,500,000
2005 47% $1,500,000
2006 46% $2,000,000
2007 45% $2,000,000
2008 45% $2,000,000
2009 45% $3,500,000
2010    35% * $5,000,000
2011 35% $5,000,000

Editors Note:  * Estates can elect to use the prior rules for 2010 where there was no estate tax but this 
                         requires that heirs get a carryover basis for inherited  assets that have appreciated
                         more than $1,300,000 (plus $3 million for assets passing to a surviving spouse).
                         

 

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