class="page page-id-615 page-template page-template-page-1column page-template-page-1column-php nojs">

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/A
Married filing jointly N/A N/A

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)

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

This information, developed by an independent third party, has been obtained from sources considered to be reliable, but Raymond James Financial Services, Inc. does not guarantee that the foregoing material is accurate or complete. This information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. Investments mentioned may not be suitable for all investors. The material is general in nature. Past performance may not be indicative of future results. Raymond James Financial Services, Inc. does not provide advice on tax, legal or mortgage issues. These matters should be discussed with the appropriate professional.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC, an independent broker/dealer, and are not insured by FDIC, NCUA or any other government agency, are not deposits or obligations of the financial institution, are not guaranteed by the financial institution, and are subject to risks, including the possible loss of principal.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2012.