Tax Defense Network: Changes in Tax Laws in 2012
Tax Defense Network informs taxpayers about the tax code changes that may affect them in 2012. Taxpayers cannot calculate their tax liability as of yet, but this information can help them in planning their taxes better. These tax changes only apply for the year 2012.
Tax Defense Network: Tax Laws for 2012
Tax Defense Network shares tax laws that taxpayers can benefit from this year:
- For a married couple filing a joint return, the taxable income threshold has risen to $70,700 for 2012.
- The maximum amount of earned income tax credit for low and moderate income taxpayers and working families increased to $5,891 for 2012.
- The Standard deduction is slightly up. For taxpayers who are single, the basic deduction amount for 2012 is $5,950.
- The Standard deduction for married couple stands at $11,900.
- Foreign earned income exclusion increased to $95,100.
- Each personal and dependent get an exemption of $3,800 in 2012.
- The maximum income limit for the ETC increased to $50,270.
- The Child tax credit will drop to $500 in 2013 from $1,000 per child in 2012.
Tax Defense Network: Unchanged Tax Law for 2012
Tax Defense Network wants to inform taxpayers about the unchanged tax laws so that they know exactly which tax laws have changed and which ones will not change for the year. Below are some tax laws that will stay unchanged for 2012.
- The optional standard mileage rate will stay the same at 55.5 cents in 2012.
- The rate of using your car to help charity stays at 14 cents a mile.
- Individual tax rates will be the same for 2012.
- The 15% maximum tax rate on capital gains will stay unchanged.
- Tax credits for adopting a child and for college expenses will continue at the current levels.
- Tax breaks provided to employees on a tax-advantaged basis will stay the same for 2012.
Tax Defense Network informs American taxpayers about some of the provisions that expired at the end of 2011 and are not longer valid. These are:
- Deductions for state and local sales taxes in place of state and local income taxes.
- Deductions for qualified tuition and fees.
Tax Defense Network notes the changes in payroll taxes for 2012 that taxpayers can benefit from. The Social Security Administration declared a 3.6 percent increase to the wage base. For 2012, it stands at $110,100. In 2011, it was $106,800. This means about $200 increase per employee at or over the wage base.
Tax Defense Network suggests American taxpayers plan their taxes from the beginning of the year till the end to save on this year’s tax bill. This will enable them to budget accurately for 2013.