2012 TAX FACTS:

Standard Deduction:

Married filing Joint & Qualifying Widow (er) $ 11,600.00 Head of Household $ 8,500.00 Single/Married Separate $ 5,800.00

Note: Can increase standard deduction by new motor vehicle taxes, real estate taxes or net disaster losses.

Personal Exemption:

$3,700.00; starts to phase out at$166,800.00 for single, $125,100.00 for married separate, $250,000.00 for joint and $208,500.00 for Head of Household.

AMT Exemption $45,000.00 joint, $33,750.00 single, $22,500.00 married-separate

Minimum wage effective 07/01/2010:

http://www.state.il.us/agency/idol/facts/mw.htm

Tax brackets; Minimum Filing Requirements:

http://www.irs.gov/publications/p17/ch01.html

Child’s maximum amount of investment income not subject to parent’s rate is $1,900.00

Education credit: American Opportunity Tax Credit $2,500.00 (100% first $2,000.00 & 25% next $2,000.00).

Mileage Deductions

Mileage	Per Mile
Business	$0.555
Charity	$0.14
Medical	$0.23
Moving	$0.23

IRA Deduction: Follow this link and see “what’s new for 2011 and for 2012:”

http://www.irs.gov/publications/p590/ar01.html#enUS publink1000230281

HSA Deduction:

Single maximum $3,050.00, family maximum $6,150.00 with $1,000.00 catch-up for 55 and older.

401(k) $16,500.00 Catch-up limit is $5,500.00 for a total possible of $22,000

FICA Limit: $110,100.00

Section 179: $500,000.00, No reduction in the deduction until exceed $2,000,000.00 of property investment.

Bonus depreciation: only for NEW equipment; a deduction of 100% is unlimited for 2011.

IRA Required minmum distribution at age 70 ½, publication 590 (below) page 33:

http://www.irs.gov/pub/irs-pdf/p590.pdf

Annual Gift Tax Exclusion: $13,000.00; Estate/Gift Tax Unified Exclusion: $5,000,000.00 for 2011 and $5,120,000 for 2012.

No portion of unemployment compensation is excludible for 2011.

Making work pay credit for 2009 and 2010 has now expired. For 2011, FICA taxes deducted from employee pay was reduced from 6.2% to 4.2% of the first $106,800 of pay. This reduction to 4.2% has been extended by 2 months into 2012. Note: Any employee with income in excess of $18,350 per month during this period will have income tax due on that excess on their 2012 income tax return in the amount of 2% of the excess not to exceed 2% of $110,100.