Tax Updates
Identity Theft Fact Sheets
The IRS has released Fact Sheet 2012-7 and Fact Sheet 2012-8 that provide taxpayers with more information on identity theft.These fact sheets cover the steps of how to prevent identity theft and what to do when your tax records have been compromised.
The IRS implemented their IRS Servicewide Identity Protection (IP) Program that places identity theft indicators on a taxpayer’s account after the taxpayer has been a victim of identity theft and provided IRS with certain substantiation documentation. Hundreds of thousands of these indicators have been placed on taxpayer accounts.
IF YOU WERE ISSUED AN IDENTITY PROTECTION PIN (IP PIN), PLEASE LET ME KNOW WHEN PREPARING YOUR RETURNS AS IT MUST BE INCLUDED ON YOUR RETURN BEFORE FILING IT.
The IRS has opened its filing season successfully in January, and refunds have started going out to many taxpayers. As with the start of any tax season, there are system validations that occur requiring some fine-tuning of their systems. As part of this, some taxpayers will receive refunds approximately one week later than initial projections they may have received, but these are still in line with historical refund delivery times.
Below are the estimated refund dates:
| IRS accepts your return (by 11:00 am) between… | Projected Direct Deposit Sent* | Projected Paper Check Mailed* |
| Jan 17 and Jan 18, 2012 | January 25, 2012 | January 27, 2012 |
| Jan 19 and Jan 25, 2012 | February 1, 2012 | February 3, 2012 |
| Jan 26 and Feb 1, 2012 | February 8, 2012 | February 10, 2012 |
| Feb 2 and Feb 8, 2012 | February 15, 2012 | February 17, 2012 |
| Feb 9 and Feb 15, 2012 | February 22, 2012 | February 24, 2012 |
| Feb 16 and Feb 22, 2012 | February 29, 2012 | March 2, 2012 |
| Feb 23 and Feb 29, 2012 | March 7, 2012 | March 9, 2012 |
| Mar 1 and Mar 7, 2012 | March 14, 2012 | March 16, 2012 |
| Mar 8 and Mar 14, 2012 | March 21, 2012 | March 23, 2012 |
| Mar 15 and Mar 21, 2012 | March 28, 2012 | March 30, 2012 |
| Mar 22 and Mar 28, 2012 | April 4, 2012 | April 6, 2012 |
| Mar 29 and Apr 4, 2012 | April 11, 2012 | April 13, 2012 |
| Apr 5 and Apr 11, 2012 | April 18, 2012 | April 20, 2012 |
| Apr 12 and Apr 18, 2012 | April 25, 2012 | April 27, 2012 |
Below are some of the tax law changes that are in effect for 2011. Some may be prior tax laws that have been extended.
Tax laws change daily, therefore this information is proved as a reference and is not intended to be a direct quotation of the tax laws.
Foreign Financial Assets
If you had foreign financial assets in 2011, you may have to file new Form 8938 with your return.
Making Work Pay Credit (Stimulus) has expired for 2011
2011 Mileage Rates
- Optional Standard Mileage Rate ………. 51.0 cents 55.5 cents as of 7/1/11
- Medical Mileage Rate ……………………….19.0 cents 23.5 cents as of 7/1/11
- Moving Mileage Rate ………………………. 19.0 cents 23.5 cents as of 7/1/11
- Charity Mileage Rate ……………………….. 14.0 cents
Beginning January 1, 2012, the standard mileage rates for the use of a car (or van, pickup or panel truck) will be:
- 55.5 cents per mile for business miles driven
- 23.0 cents per mile driven for medical or moving purposes
- 14.0 cents per mile driven for charitable purposes
Tax Brackets:
So far, tax brackets for 2012 remain at 10%, 15%, 25%, 28%, 33% and 35%.
2011 Standard Deduction Amounts:
- Single ………………………….. $ 5,800
- Married Filing Jointly ………….$11,600
- Married Filing Separately …… $ 5,800
- Head of Household ……………$ 8,500
Personal Exemption Amounts:
For 2011, the Personal Exemption Amount is $3,700.
Repayment of first-time homebuyer credit:
If you claimed the first-time homebuyer credit for a home you bought in 2008, you generally must keep repaying it on your 2011 return.
Retirement Plan Contributions for 2011 and 2012:
In order to maximize the tax benefits of your retirement contributions the following amounts reflect the maximum contributions for the respective years.
| Type of Retirement Plan | 2011 | 2012 |
|---|---|---|
| Individual Retirement Account (IRA) | $5,000 | $5,000 |
| Catch-up amount, age 50 and older | $1,000 | $1,000 |
| 401K | $16,500 | $16,500 |
| Catch-up amount, age 50 and older | $5,500 | $5,500 |
| SIMPLE Plan | $11,500 | $11,500 |
| Catch-up amount, age 50 and older | $2,500 | $2,500 |
| SEP IRA contribution limit | $49,000 | $49,000 |