Small Business Taxes & Management

Corporate and Individual Tax Data

Small Business Taxes & Management--Copyright 1998-2012, A/N Group, Inc.

CAUTION--This page contains data for several years. Please watch all dates carefully.

Contents

Corporate Income Tax Rates--Including rates for personal service corporations, personal holding companies, and accumulated earnings tax.

Miscellaneous Business Data--Section 179 expense limits

2013--Tax Facts for Individuals

2012--Tax Facts for Individuals

2011--Tax Facts for Individuals

2010--Tax Facts for Individuals

 

Corporate Income Tax Rates--2012, 2011, 2010, 2009, 2008, 2007, 2006, 2005

       Taxable income over     Not over      Tax rate

          $         0        $    50,000        15%
               50,000             75,000        25%
               75,000            100,000        34%
              100,000            335,000        39%
              335,000         10,000,000        34%
           10,000,000         15,000,000        35%
           15,000,000         18,333,333        38%
           18,333,333         ..........        35%

Personal Service Corporations

Personal service corporations are subject to a flat tax of 35% regardless of their income.

 

Personal Holding Company

Personal holding companies are subject to an additional tax at 15% (higher in 2002 and prior years) on any undistributed personal holding company income. (Code Sec. 541)

 

Accumulated Earnings Tax

In addition to the regular tax, a corporation may be liable for an additional tax at 15% (higher in 2002 and prior years) on accumulated taxable income in excess of $250,000 ($150,000 for personal service corporations). (Code Sec. 531)

 

Miscellaneous Business Data

Maximum Section 179 Expense Deduction

            2012        2011         2010          2009          2008          2007          2006                 
          $139,000    $500,000      $500,000      $250,000      $250,000      $125,000      $108,000       

Phaseout--$560,000 for 2012; $2,000,000 for 2011; $2,000,000 for 2010; $800,000 for 2009; $800,000 for 2008; $500,000 for 2007; $430,000 for 2006.

Note. An increased Sec. 179 deduction is available to enterprise zone businesses and renewal community business in certain situations. In addition, an increased Sec. 179 deduction is available for certain Sec. 179 Disaster Assistance property. Check the rules in place at the time the property is placed in service. Finally, the maximum deduction for heavy sport utility vehicles and certain other vehicles is restricted to $25,000.

 

Tax Facts for Individuals--2013

Note-As a result of the expiration of the 2001, 2003 tax cuts, the tax rates, personal exemption, standard deduction, and a number of other amounts that are adjusted for inflation are not available at this time.

Unearned Income Medicare Contributions Tax--2013

Lesser of 3.8% of net investment income from interest, dividends, annuities, royalties, rents, and gains not generated in active trade or business or modified adjusted gross income in excess of $200,000 ($250,000 for married filing joint; $125,000 for married filing separate).

 

Additional Medicare Tax on Self-Employment Income--2013

Additional tax of 0.9% on self-employment income in excess of $200,000 ($250,000 for married joint; $125,000 married separate).

 

Savings Bond/Higher Education Expense Exclusion--2013

Modified adjusted gross income phaseout--married, joint, $112,050--$142,050; all other filing status, $74,700--$89,700

 

Miscellaneous--2013

Annual Exclusion for Gifts--$14,000

Annual Exclusion for Gifts to Spouse not a Citizen--$143,000

Notice of Large Gifts Received from Foreign Persons--$15,102

Interest on Certain Portion of Estate Tax Payable in Installments (Sec. 6166; 2% portion)--$1,430,000

Valuation of Qualified Real Property in Decendent's Gross Estate (Sec. 2032A)--$1,070,000

Unearned Income of Minor Child (Kiddie Tax)--$1,000 ($10,000 for parental election)

Foreign Earned Income Exclusion--$97,600

Minor Child subject to Kiddie Tax--up to age 18 or full-time student over 18 with earned income no more than 1/2 support under age 24.

Periodic Payments Received under Long-Term Qualified Care Insurance Contracts or Certain Life Insurance Contracts Per Diem Limitation--$320

Loan limit on Agricultural Bonds for First-Time Farmers--$501,100

 

Social Security--2013

OASDI Wage Base--$113,700

Quarter of coverage--$1,160

Retirement Savings Test--$15,120 (under full retirement age); $40,080 (year of full retirement age)

For a fact sheet on the COLA go to www.ssa.gov/pressoffice/factsheets/colafacts2013.htm

 

Health Savings Accounts--2013

Maximum annual HSA contributions deductible--$3,250 for individual; $6,450 for family coverage

Catch-up contributions for individuals 55 or older (but less than 65) is $1,000 (pro rate for year).

Deductible Amounts that define High Deductible Plan:

                Annual Deductible   Deductibles, Co-Payments and other Amounts 
                  Not Less Than           but not Premiums Not to Exceed

Self Only            $1,250                         $ 6,250

Family Coverage       2,500                          12,500

 

Eligible Long-Term Care Premiums--2013


Attained Age Before the Close of the Tax Year   Limitation on Premiums

     40 or less                                        $  360
     More than 40 but not more than 50                    680
     More than 50 but not more than 60                  1,360
     More than 60 but not more than 70                  3,640
     More than 70                                       4,550

Persons Against Which a Federal Tax Lien is Not Valid--2013

Purchasers in a casual sale for less than $1,470 or a mechanic's lienor that repair or improved certain residential property if the contract price is not more than $7,350.

 

Property Exempt from Levy--2013

Property exempt from levy under Sec. 6334(a)(2) cannot exceed $8,970. Property exempt from levy under Sec. 6334(a)(3) (books and tools for trade or business) cannot exceed $4,400.

 

Tax Facts for Individuals--2012

Tax Rate--Single Taxpayers--2012

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  8,700        $    0.00   10       $      0
   8,700       35,350           870.00   15          8,700
  35,350       85,650         4,867.50   25         35,350
  85,650      178,650        17,442.50   28         85,650
 178,650      388,350        43,482.50   33        178,650
 388,350      .......       112,683.50   35        388,350
  

Tax Rates--Married Individuals Filing Joint and Surviving Spouses--2012

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 17,400        $     0.00  10       $      0
  17,400       70,700          1,740.00  15         17,400
  70,700      142,700          9,735.00  25         70,700
 142,700      217,450         27,735.00  28        142,700
 217,450      388,350         48,665.00  33        217,450
 388,350      .......        105,062.00  35        388,350
 

Tax Rates--Married Individuals Filing Separate--2012

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  8,700        $    0.00   10       $      0
   8,700       35,350           870.00   15          8,700
  35,350       71,350         4,867.50   25         35,350
  71,350      108,725        13,867.50   28         71,350
 108,725      194,175        24,332.50   33        108,725
 194,175      .......        52,531.00   35        194,175


Tax Rates--Heads Of Households--2012

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 12,400        $    0.00   10       $      0
  12,400       47,350         1,240.00   15         12,400
  47,350      122,300         6,482.50   25         47,350
 122,300      198,050        25,220.00   28        122,300
 198,050      388,350        46,430.00   33        198,050
 388,350      .......       109,229.00   35        388,350



Tax Rates--Estates And Trusts--2012

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

  $    0       $2,400             0.00   15         $    0
   2,400        5,600        $  360.00   25          2,400
   5,600        8,500         1,160.00   28          5,600
   8,500       11,650         1,972.00   33          8,500
  11,650        .....         3,011.50   35         11,650

Long-Term Capital Gains and Qualifying Dividends--2012

For taxpayers in the 10% or 15% bracket--0%

For taxpayers in higher brackets--15%

Tax on unrecaptured Sec. 1250 gain--25%

Capital gain rate on collectibles--28%

 

Standard Deduction--2012

Filing Status                       Standard Deduction

Married filing joint and 
surviving spouses                       $11,900

Heads of Household                        8,700
   
Single individuals                        5,950

Married, filing separate                  5,950

Dependent's Standard Deduction--No more than the greater of $950 or $300 plus the individual's earned income.

Additional standard deduction for aged and blind--$1,150 each ($1,450 if individual is unmarried and not surviving spouse)

 

Personal Exemption--2012

Amount--$3,800

 

Savings Bond/Higher Education Expense Exclusion--2012

Modified adjusted gross income phaseout--married, joint, $109,250--$139,250; all other filing status, $72,850--$87,850

 

American Opportunity Tax Credit (Hope Credit)--2012

100% of first $2,000 of education expenses; 25% of expenses between $2,000 and $4,000 (maximum credit $2,500)

Phaseout begins at modified adjusted gross income of $160,000 joint return; $80,000 all others.

Credit completely phased out at $180,000 ($90,000).

 

Lifetime Learning Credits--2012

20% of first $10,000 of qualified education expenses.

Phaseout begins at modified adjusted gross income of $104,000 joint return; $52,000 all others.

Credit completely phased out at $124,000 joint returns; $62,000 all others.

 

Interest on Education Loans--2012

Maximum interest deduction--$2,500

Modified adjusted gross income phaseout range--Married, joint, $125,000--$155,000; all other filing status, $60,000--$75,000

 

Qualified Transportation Fringe Benefit Exclusion--2012

Commuter highway vehicle and transit pass--$125

Qualified parking--$240

Qualified bicycle allowance--$20 per month

 

Earned Income Tax Credit (EITC)--2012

                                                   Number of Qualifying Children
Item                                         One    Two or More    Three or More    None

Earned Income Amount                       $ 9,320    $13,090        $13,090     $ 6,210
Maximum Amount of Credit                     3,169      5,236          5,891         475
Threshold Phaseout (single, surviving
  spouse or head of household)              17,090     17,090         17,090       7,770
Completed Phaseout (single, surviving 
  spouse or head of household)              36,920     41,952         45,060      13,980
Threshold Phaseout (married, joint)         22,300     22,300         22,300      12,980
Completed Phaseout (married, joint)         42,130     47,162         50,270      19,190
Excessive Investment Income for Earned Income Tax Credit--$3,200

 

Miscellaneous--2012

Child Tax Credit--$1,000; phaseout MAGI $110,000 joint, $75,000 single, $55,000 MFS; refundable $3,000 Sec. 24(d)(1)(B)(i)

Unified Credit Against Estate Tax--$5,120,000

Annual Exclusion for Gifts--$13,000

Annual Exclusion for Gifts to Spouse not a Citizen--$139,000

Notice of Large Gifts Received from Foreign Persons--$14,723

Interest on Certain Portion of Estate Tax Payable in Installments (Sec. 6166; 2% portion)--$1,390,000

Valuation of Qualified Real Property in Decendent's Gross Estate (Sec. 2032A)--$1,040,000

Unearned Income of Minor Child (Kiddie Tax)--$950 ($9,500 for parental election)

Foreign Earned Income Exclusion--$95,100

Minor Child subject to Kiddie Tax--up to age 18 or full-time student over 18 with earned income no more than 1/2 support under age 24.

Periodic Payments Received under Long-Term Qualified Care Insurance Contracts or Certain Life Insurance Contracts Per Diem Limitation--$310

Loan limit on Agricultural Bonds for First-Time Farmers--$488,600

 

Social Security--2012

Taxable Thresholds--Social security payments includable in income if modified AGI exceeds base amounts.
Modified AGI includes certain excluded income (e.g., tax exempt interest) and 1/2 of social security payments.

50% inclusion threshold:

$25,000 no more than $34,000--single, head of household, married living apart ($0 for married, separate)

$32,000 no more than $44,000--married filing joint

85% inclusion threshold:

more than $34,000--single, head of household, married living apart ($0 for married, separate)

more than $44,000--married filing joint

OASDI Wage Base--$110,100

Household (domestic) employee cash wages threshold--$1,800

Quarter of coverage--$1,130

Retirement Savings Test--$14,640 (under full retirement age); $38,880 (year of full retirement age)

For a fact sheet on the COLA go to www.ssa.gov/pressoffice/factsheets/colafacts2012.htm

 

Health Savings Accounts--2012

Maximum annual HSA contributions deductible--$3,100 for individual; $6,250 for family coverage

Catch-up contributions for individuals 55 or older (but less than 65) is $1,000 (pro rate for year).

Deductible Amounts that define High Deductible Plan:

                Annual Deductible   Deductibles, Co-Payments and other Amounts 
                  Not Less Than           but not Premiums Not to Exceed

Self Only            $1,200                         $ 6,050

Family Coverage       2,400                          12,100

 

Adoption Expenses--2012

Maximum credit for child with special needs--$12,650

Maximum credit, other adoptions--$12,650

Other adoptions, gross income exclusion, qualified expenses up to $12,650

Phaseout range, modified adjusted gross income--$189,710 to $229,710

 

Eligible Long-Term Care Premiums--2012


Attained Age Before the Close of the Tax Year   Limitation on Premiums

     40 or less                                        $  350
     More than 40 but not more than 50                    660
     More than 50 but not more than 60                  1,310
     More than 60 but not more than 70                  3,500
     More than 70                                       4,370

Persons Against Which a Federal Tax Lien is Not Valid--2012

Purchasers in a casual sale for less than $1,430 or a mechanic's lienor that repair or improved certain residential property if the contract price is not more than $7,160.

 

Property Exempt from Levy--2012

Property exempt from levy under Sec. 6334(a)(2) cannot exceed $8,570. Property exempt from levy under Sec. 6334(a)(3) (books and tools for trade or business) cannot exceed $4,290.

 

Tax Facts for Individuals--2011

Tax Rate--Single Taxpayers--2011

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  8,500        $    0.00   10       $      0
   8,500       34,500           850.00   15          8,500
  34,500       83,600         4,750.00   25         34,500
  83,600      174,400        17,025.00   28         83,600
 174,400      379,150        42,449.00   33        174,400
 379,150      .......       110,016.50   35        379,150
  

Tax Rates--Married Individuals Filing Joint and Surviving Spouses--2011

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 17,000        $     0.00  10       $      0
  17,000       69,000          1,700.00  15         17,000
  69,000      139,350          9,500.00  25         69,000
 139,350      212,300         27,087.50  28        139,350
 212,300      379,150         47,513.50  33        212,300
 379,150      .......        102,574.00  35        379,150
 

Tax Rates--Married Individuals Filing Separate--2011

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  8,500        $    0.00   10       $      0
   8,500       34,500           850.00   15          8,500
  34,500       69,675         4,750.00   25         34,500
  69,675      106,150        13,543.75   28         69,675
 106,150      189,575        23,756.75   33        106,150
 189,575      .......        51,287.00   35        189,575


Tax Rates--Heads Of Households--2011

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 12,150        $    0.00   10       $      0
  12,150       46,250         1,215.00   15         12,150
  46,250      119,400         6,330.00   25         46,250
 119,400      193,350        24,617.50   28        119,400
 193,350      379,150        45,323.50   33        193,350
 379,150      .......       106,637.50   35        379,150



Tax Rates--Estates And Trusts--2011

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

  $    0       $2,300             0.00   15         $    0
   2,300        5,450        $  345.00   25          2,300
   5,450        8,300         1,132.50   28          5,450
   8,300       11,350         1,930.50   33          8,300
  11,350        .....         2,937.00   35         11,350

Long-Term Capital Gains and Qualifying Dividends--2011

For taxpayers in the 10% or 15% bracket--0%

For taxpayers in higher brackets--15%

Tax on unrecaptured Sec. 1250 gain--25%

Capital gain rate on collectibles--28%

 

Standard Deduction--2011

Filing Status                       Standard Deduction

Married filing joint and 
surviving spouses                       $11,600

Heads of Household                        8,500
   
Single individuals                        5,800

Married, filing separate                  5,800

Dependent's Standard Deduction--No more than the greater of $950 or $300 plus the individual's earned income.

Additional standard deduction for aged and blind--$1,150 each ($1,450 if individual is unmarried and not surviving spouse)

 

Personal Exemption--2011

Amount--$3,700

 

Savings Bond/Higher Education Expense Exclusion--2011

Modified adjusted gross income phaseout--married, joint, $106,500--$136,650; all other filing status, $71,100--$86,100

 

American Opportunity Tax Credit (Hope Credit)--2011

100% of first $2,000 of education expenses; 25% of expenses between $2,000 and $4,000 (maximum credit $2,500)

Phaseout begins at modified adjusted gross income of $160,000 joint return; $80,000 all others.

Credit completely phased out at $180,000 ($90,000).

 

Lifetime Learning Credits--2011

20% of first $10,000 of qualified education expenses.

Phaseout begins at modified adjusted gross income of $102,000 joint return; $51,000 all others.

Credit completely phased out at $122,000 joint returns; $61,000 all others.

 

Tuition and Fees Deduction--2011

$4,000 limit of qualifed expenses.

AGI not in excess of $130,000 (married joint) or $65,000 (all others) maximum deduction is $4,000.

AGI not in excess of $160,000 (married joint) or $80,000 (all others) maximum deduction is $2,000.

No deduction if AGI in excess of $160,000 (married joint) or $80,000 (all others)

 

Interest on Education Loans--2011

Maximum interest deduction--$2,500

Modified adjusted gross income phaseout range--Married, joint, $120,000--$150,000; all other filing status, $60,000--$75,000

 

Qualified Transportation Fringe Benefit Exclusion--2011

Commuter highway vehicle and transit pass--$230

Qualified parking--$230

Qualified bicycle allowance--$20 per month

 

Earned Income Tax Credit (EITC)--2011

                                                   Number of Qualifying Children
Item                                         One    Two or More    Three or More    None

Earned Income Amount                       $ 9,100    $12,780        $12,780     $ 6,070
Maximum Amount of Credit                     3,094      5,112          5,751         464
Threshold Phaseout (single, surviving
  spouse or head of household)              16,690     16,690         16,690       7,590
Completed Phaseout (single, surviving 
  spouse or head of household)              36,052     40,964         43,998      13,660
Threshold Phaseout (married, joint)         21,770     21,770         21,770      12,670
Completed Phaseout (married, joint)         41,132     46,044         49,078      18,740
Excessive Investment Income for Earned Income Tax Credit--$3,150

 

Alternative Minimum Tax--2011


First $175,000 ($87,500 married, separate) of Alternative Minimum Taxable Income       26%

Over $175,000 of AMTI (Alternative Minimum Taxable Income)                             28%

Exemptions:

Joint Filers                      $74,450 

Married, separate                 $37,225

Single (and head of household)    $48,450  

Estates & Trusts                  $22,500 

Child subject to Kiddie Tax        $6,700 (plus child's earned income)


Exemption Phaseout:

25% of amount AMTI exceeds:

$150,000 for married, joint and surviving spouses

$112,500 single (and head of household)

$75,000 married, filing separate


Miscellaneous--2011

Child Tax Credit--$1,000; phaseout MAGI $110,000 joint, $75,000 single, $55,000 MFS; refundable $3,000 Sec. 24(d)(1)(B)(i)

Annual Exclusion for Gifts--$13,000

Annual Exclusion for Gifts to Spouse not a Citizen--$136,000

Notice of Large Gifts Received from Foreign Persons--$14,375

Interest on Certain Portion of Estate Tax Payable in Installments (Sec. 6166; 2% portion)--$1,360,000

Valuation of Qualified Real Property in Decendent's Gross Estate (Sec. 2032A)--$1,020,000

Unearned Income of Minor Child (Kiddie Tax)--$950 ($9,500 for parental election)

Foreign Earned Income Exclusion--$92,900

Minor Child subject to Kiddie Tax--up to age 18 or full-time student over 18 with earned income no more than 1/2 support under age 24.

 

Social Security--2011

OASDI Wage Base--$106,800

Household (domestic) employee cash wages threshold--$1,700

Quarter of coverage--$1,120

For a fact sheet on the COLA go to www.ssa.gov/pressoffice/factsheets/colafacts2011.htm

 

Health Savings Accounts--2011

Maximum annual HSA contributions deductible--$3,050 for individual; $6,150 for family coverage

Catch-up contributions for individuals 55 or older (but less than 65) is $1,000 (pro rate for year).

Deductible Amounts that define High Deductible Plan:

                Annual Deductible   Deductibles, Co-Payments and other Amounts 
                  Not Less Than           but not Premiums Not to Exceed

Self Only            $1,200                         $ 5,950

Family Coverage       2,400                          11,900


 

Adoption Expenses--2011

Maximum credit for child with special needs--$13,360

Maximum credit, other adoptions--$13,360

Other adoptions, gross income exclusion, qualified expenses up to $13,360

Phaseout range, modified adjusted gross income--$185,210 to $225,210

 

Eligible Long-Term Care Premiums--2011


Attained Age Before the Close of the Tax Year   Limitation on Premiums

     40 or less                                        $  340
     More than 40 but not more than 50                    640
     More than 50 but not more than 60                  1,270
     More than 60 but not more than 70                  3,390
     More than 70                                       4,240

Persons Against Which a Federal Tax Lien is Not Valid--2011

Purchasers in a casual sale for less than $1,400 or a mechanic's lienor that repair or improved certain residential property if the contract price is not more than $6,990.

 

Property Exempt from Levy--2011

Property exempt from levy under Sec. 6334(a)(2) cannot exceed $8,370. Property exempt from levy under Sec. 6334(a)(3) (books and tools for trade or business) cannot exceed $4,180.

 

Tax Facts for Individuals--2010

Tax Rate--Single Taxpayers--2010

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  8,375        $    0.00   10       $      0
   8,375       34,000           837.50   15          8,375
  34,000       82,400         4,681.25   25         34,000
  82,400      171,850        16,781.25   28         82,400
 171,850      373,650        41,827.25   33        171,850
 373,650      .......       108,421.25   35        373,650
  

Tax Rates--Married Individuals Filing Joint and Surviving Spouses--2010

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 16,750        $     0.00  10       $      0
  16,750       68,000          1,675.00  15         16,750
  68,000      137,300          9,362.50  25         68,000
 137,300      209,250         26,687.50  28        137,300
 209,250      373,650         46,833.50  33        209,250
 373,650      .......        101,085.50  35        373,650
 

Tax Rates--Married Individuals Filing Separate--2010

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  8,375        $    0.00   10       $      0
   8,375       34,000           837.50   15          8,375
  34,000       68,650         4,681.25   25         34,000
  68,650      104,625        13,343.75   28         68,650
 104,625      186,825        23,416.75   33        104,625
 186,825      .......        50,542.75   35        186,825


Tax Rates--Heads Of Households--2010

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 11,950        $    0.00   10       $      0
  11,950       45,550         1,195.00   15         11,950
  45,550      117,650         6,235.00   25         45,550
 117,650      190,550        24,260.00   28        117,650
 190,550      373,650        44,672.00   33        190,550
 373,650      .......       105,095.00   35        373,650



Tax Rates--Estates And Trusts--2010

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

  $    0       $2,300             0.00   15         $    0
   2,300        5,350        $  345.00   25          2,300
   5,350        8,200         1,107.50   28          5,350
   8,200       11,200         1,905.50   33          8,200
  11,200        .....         2,895.50   35         11,200

Long-Term Capital Gains and Qualifying Dividends--2010

For taxpayers in the 10% or 15% bracket--0%

For taxpayers in higher brackets--15%

Tax on unrecaptured Sec. 1250 gain--25%

Capital gain rate on collectibles--28%

 

Standard Deduction--2010

Filing Status                       Standard Deduction

Married filing joint and 
surviving spouses                       $11,400

Heads of Household                        8,400
   
Single individuals                        5,700

Married, filing separate                  5,700

Dependent's Standard Deduction--No more than the greater of $950 or $300 plus the individual's earned income.

Additional standard deduction for aged and blind--$1,100 each ($1,400 if individual is unmarried and not surviving spouse)

 

Personal Exemption--2010

Amount--$3,650

No phaseout of personal exemption in 2010.

 

Alternative Minimum Tax--2010


First $175,000 ($87,500 married, separate) of Alternative Minimum Taxable Income       26%

Over $175,000 of AMTI (Alternative Minimum Taxable Income)                             28%

Exemptions:

Joint Filers                      $72,450 

Married, separate                 $36,225

Single (and head of household)    $47,450  

Estates & Trusts                  $22,500 

Child subject to Kiddie Tax        $6,700 (plus child's earned income)


Exemption Phaseout:

25% of amount AMTI exceeds:

$150,000 for married, joint and surviving spouses

$112,500 single (and head of household)

$75,000 married, filing separate


American Opportunity Tax Credit (Hope Credit)--2010

100% of first $2,000 of education expenses; 25% of expenses between $2,000 and $4,000 (maximum $2,500)

Phaseout begins at modified adjusted gross income of $160,000 joint return; $80,000 all others.

Credit completely phased out at $180,000 ($90,000).

 

Lifetime Learning Credits--2010

20% of first $10,000 of qualified education expenses.

Phaseout begins at modified adjusted gross income of $100,000 joint return; $50,000 all others.

Credit completely phased out at $120,000 joint returns; $60,000 all others.

 

Tuition and Fees Deduction--2010

$4,000 limit of qualifed expenses.

AGI not in excess of $130,000 (married joint) or $65,000 (all others) maximum deduction is $4,000.

AGI not in excess of $160,000 (married joint) or $80,000 (all others) maximum deduction is $2,000.

No deduction if AGI in excess of $160,000 (married joint) or $80,000 (all others)

 

Interest on Education Loans--2010

Maximum interest deduction--$2,500

Modified adjusted gross income phaseout range--Married, joint, $120,000--$150,000; all other filing status, $60,000--$75,000

 

Savings Bond/Higher Education Expense Exclusion--2010

Modified adjusted gross income phaseout--married, joint, $105,100--$135,100; all other filing status, $70,100--$85,100

 

Qualified Transportation Fringe Benefit Exclusion--2010

Commuter highway vehicle and transit pass--$230

Qualified parking--$230

Qualified bicycle allowance--$20 per month

 

Earned Income Tax Credit (EITC)--2010

                                                   Number of Qualifying Children
Item                                         One    Two or More    Three or More    None

Earned Income Amount                       $ 8,970    $12,590        $12,950     $ 5,980
Maximum Amount of Credit                     3,050      5,036          5,666         457
Threshold Phaseout (single, surviving
  spouse or head of household)              16,450     16,450         16,450       7,480
Completed Phaseout (single, surviving 
  spouse or head of household)              35,535     40,363         43,352      13,460
Threshold Phaseout (married, joint)         21,460     21,460         21,460      12,490
Completed Phaseout (married, joint)         40,545     45,373         48,362      18,470
Excessive Investment Income for Earned Income Tax Credit--$3,100

 

Miscellaneous--2010

Annual Exclusion for Gifts--$13,000

Annual Exclusion for Gifts to Spouse not a Citizen--$134,000

Notice of Large Gifts Received from Foreign Persons--$14,165

Interest on Certain Portion of Estate Tax Payable in Installments (Sec. 6166; 2% portion)--$1,340,000

Valuation of Qualified Real Property in Decendent's Gross Estate (Sec. 2032A)--$1,000,000

Unearned Income of Minor Child (Kiddie Tax)--$950 ($9,500 for parental election)

Foreign Earned Income Exclusion--$91,500

Minor Child subject to Kiddie Tax--up to age 18 or full-time student over 18 with earned income no more than 1/2 support under age 24.

 

Adoption Expenses--2010

Maximum credit for child with special needs--$13,170

Maximum credit, other adoptions--$13,170

Other adoptions, gross income exclusion, qualified expenses up to $13,170

Phaseout range, modified adjusted gross income--$182,520 to $222,520

 

Persons Against Which a Federal Tax Lien is Not Valid--2010

Purchasers in a casual sale for less than $1,380 or a mechanic's lienor that repair or improved certain residential property if the contract price is not more than $6,890.

 

Property Exempt from Levy--2010

Property exempt from levy under Sec. 6334(a)(2) cannot exceed $8,520. Property exempt from levy under Sec. 6334(a)(3) (books and tools for trade or business) cannot exceed $4,120.

 

Eligible Long-Term Care Premiums--2010


Attained Age Before the Close of the Tax Year   Limitation on Premiums

     40 or less                                        $  330
     More than 40 but not more than 50                    620
     More than 50 but not more than 60                  1,230
     More than 60 but not more than 70                  3,290
     More than 70                                       4,110

Social Security--2010

OASDI Wage Base--$106,800

Household (domestic) employee cash wages threshold--$1,700

Quarter of coverage--$1,090

 

Health Savings Accounts--2010

Maximum annual HSA contributions deductible--$3,050 for individual; $6,150 for family coverage

Catch-up contributions for individuals 55 or older (but less than 65) is $1,000 (pro rate for year).

Deductible Amounts that define High Deductible Plan:

                Annual Deductible   Deductibles, Co-Payments and other Amounts 
                  Not Less Than           but not Premiums Not to Exceed

Self Only            $1,200                         $ 5,950

Family Coverage       2,400                          11,900


Homebuyer Credit Phaseout

Single             $125,000--$145,000

Married, Joint     $225,000--$245,000
Prior to Nov. 7, 2009

Single             $ 75,000--$ 95,000

Married, Joint     $150,000--$170,000


 

 


Copyright 2003-2012 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject.--ISSN 1089-1536


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Last update 10/25/12