Your Guide To Federal Tax Updates For 2012 Filing

Your Guide To Federal Tax Updates For 2012 Filing

In November of 2011, the Internal Revenue Service published a number of changes in federal tax law. Health insurance deductions, home buying credits and point reimbursement are among the many tax areas affected.

This article provides an overview of the new changes to Formation 1040, since this will affect your tax filing in 2012.

2012 Tax Due Date

The due date for filing forms and paying your taxes is April 17, 2012. The only exception to this butt end is military members and their support staff, who have their due date automatically extended by eight weeks to June 15th.

Alternative Minimum Tax Full play Increase

Every year, each taxpayer is high for paying their regular income tax or the alternative minimum tax, whichever is greater. Tax owed beneath the AMT is ofttimes more than regular income tax thanks to it excludes many deductions. This year, as part of a brief tax relief plan for Americans, more income than usual is excluded from AMT taxation.

Your flexibility amount for the alternative minimum tax ( AMT ) has now and slightly for 2011. Exemptions are currently $48, 450 for people filing as single, $74, 450 for married pair filing jointly and qualified widowers, and $37, 225 for married band filing separately. These figures in each category are $1, 000 - $2, 000 higher than they were last tax season.

Capital Gains & Losses

Most taxpayers with cash gains and losses must report these on the new Articulation 8949 and indicate the totals on Scheme D. If you have gains or losses and you have an investment broker, then your broker should send you a 1099 - B or a coincident statement to help you complete the 8949.

Expired Tax Benefits

The Making Work Pay credit, which was claimed with Diary M, has former. It was a fleeting program for 2009 and 2010.

The alternative motor vehicle credit has been chiefly retired. An exception is made for certain Hondas with new fuel cells. When purchased through to December 31, 2014, these vehicles are associated with tax deductions of $8, 000 and $12, 000. More details on this are prone on IRS Configuration 8910.

First - Time Homebuyer Credit Claim

You can claim a first - time homebuyer credit on your 2011 taxes if you or your spouse served as a member of the uniformed services, the Foreign Service and the national intelligence community. You will also be eligible if you served on greater war-horse authenticated duty for at virgin 90 days outside of the US, first-hand on or after January 1, 2009 and ending by April 30, 2010. More details on this are provided subservient line 67 of Structure 1040.

Health Insurance Deduction for the Self - Employed

A health insurance deduction for self - slaving taxpayers and their dependents can now be taken on line 29 of Appearance 1040. It is no longer an option on Programme SE.

Health Savings Accounts Tax Increase

Taxes on non - medical distributions from health savings accounts and Archer medical savings accounts have amassed to 20 %. More details on this are provided on Design 8889 and Silhouette 8853.

Repayment of First - Time Homebuyer Credit

If you need to repay this type of credit, you might have a streamlined paperwork option. See the instructions on line 59b of System 1040.

Roth IRA Conversion & Rollover Reporting

In most cases, if you converted or matty over roll to a Roth IRA or other marked Roth account in 2010 and did not report this vigor on your 2010 income, then you must report half of it for 2011 and half for 2012. You can find more details on merchandise 15 and 16 of your 1040.

Schedule L Replacement

Schedule L was once used to calculate a probably mind. A replacement modification for Programme L is now provided on line 40 of Contour 1040.

Standard Employment Rates

The reimbursement rates for vehicle use have extended. The standard for business use of a vehicle has now risen to 51 cents per mile for usage accrued by June 30, 2011. The degree is 55. 5 cents per mile for business object after June 30th. The 2011 ratio for using a vehicle to procedure a home or residence has extended to 19 cents per mile through June 30th and 23. 5 cents after that. The reimbursement rate for charitable work however remains 14 cents per mile.

Another nickels this year is that avail put on vehicles for hire, uniform as taxis, can be included in business transport deductions.

Mailing Addresses for IRS Offices

Some IRS filing locations have changed since last year. You can find the current addresses at the IRS website: www. irs. gov / file / record. html.

Conclusion

Changes to Skeleton 1040 for the 2011 tax year aren " t major, but they do bear review. Knowing what " s changed can help you estimate this year " s figures and avoid making mistakes on your return. You can scan more about the new developments affecting federal tax configuration 1040 by visiting www. irs. gov / form1040