Dollar$
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Tax Corner
Tips for the Recently Married
by Devon Weaver, Keeping Tabs Accounting
In 2012, Many Tax Benefits Increase
Due To Inflation Adjustments
For tax year 2012, personal exemptions and standard deductions will
rise and tax brackets will widen due to
inflation. By law, the dollar amounts
for a variety of tax provisions, must be
revised each year to keep pace with inflation. New dollar amounts affecting
2012 returns, filed by most taxpayers
in early 2013, include the following:
• The value of personal and dependent
exemptions, available to most taxpayers, is $3,800, up $100.
• Standard deduction for married couples filing a joint return is $11,900,
up $300; $5,950 for singles and
married individuals filing separately,
up $150; and $8,700 for heads of
household, up $200.
• Tax-bracket thresholds increase for
each filing status. Example: A married couple filing a joint return, the
taxable-income threshold separating the 15-percent bracket from the
25-percent bracket is $70,700, up
from $69,000 in 2011.
Credits, deductions, related phase outs
• The maximum earned income tax
credit (EITC) for low- and moderateincome workers and working families
rises to $5,891, up from $5,751.
• Modified adjusted gross income
threshold where lifetime learning credit begins to phase out is
$104,000 for joint filers, up from
$102,000, and $52,000 for singles
and heads of household. (Was
$51,000.)
• The $2,500 maximum deduction for
interest paid on student loans begins
to phase out for married taxpayers
filing a joint return at $125,000 and
phases out completely at $155,000,
an increase of $5,000 from the
phase out limits for tax year 2011.
For single taxpayers, the phase out
ranges remain at the 2011 levels.
Estate and Gift
For an estate of any decedent
dying during calendar year 2012, the
For newlyweds the last thing on their
mind is taxes. However, there are some
important steps needed to avoid stress
at tax time. Here are some tips.
1. Notify the Social Security Administration of any name change so
your name and Social Security number
will match when you file your next tax
return. File a Form SS-5, Application
for a Social Security Card, at your local
SSA office.
2. Moving? Send Form 8822, Change
of Address, to the IRS.
3. Notify U.S. Postal Service so you
get IRS correspondence or refunds.
4. Notify your employer(s) of
name/address changes to make sure
you receive your Form W-2.
5. Check your withholding If both
you and your spouse work, your combined income may place you in a higher
tax bracket.
basic exclusion from estate tax amount
is $5,120,000, up from $5,000,000
for calendar year 2011. Also, if the
executor chooses to use the special use
valuation method for qualified real
property, the aggregate decrease in the
value of the property resulting from
the choice cannot exceed $1,040,000,
up from $1,020,000 for 2011. The
annual exclusion for gifts remains at
$13,000.
260 D North Village Dr. • Shipshewana, IN 46565
Devon Weaver, CTp, CQPA • Office: 260.768.4760 or 260.768.7198
Payroll Services & Accounting Services
1 hour of free
business
consulting
pg · The Hometown Treasure · Dec. ‘11
pg 4 ·4The Hometown Treasure · Dec. ‘11
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Let us put 15 years of accounting & 10 years of tax preparation experience
to work for you. We offer tax prep for individual & business (including
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