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 2011.
