Per the IRS, "for tax year 2012, personal exemptions and standard
deductions will rise and tax brackets will widen due to inflation."
Due to the existing Tax Law, "the dollar amounts for a variety of tax
provisions, affecting virtually every taxpayer, must be revised each
year to keep pace with inflation." Thus, the New dollar amounts
affecting 2012 returns, filed by most taxpayers in early 2013, include
the following:
The value of each personal and dependent exemption, available to most taxpayers, is $3,800, up $100 from 2011.
The new standard deduction is $11,900 for married couples filing a
joint return, up $300, $5,950 for singles and married individuals filing
separately, up $150, and $8,700 for heads of household, up $200.
Nearly two out of three taxpayers take the standard deduction, rather
than itemizing deductions, such as mortgage interest, charitable
contributions and state and local taxes.
Tax-bracket thresholds increase for each filing status. For a married
couple filing a joint return, for example, the taxable-income threshold
separating the 15-percent bracket from the 25-percent bracket is $70,700, up from $69,000 in 2011.
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