Halcolm Bard CPA - Employee Site

2011 Individual Income			2012 Individual Income
Taxes and Rates			Taxes and Rates

		% on				% on
		Excess				Excess
Based Taxable	Tax on	Over	Based Taxable	Tax on		Over
Income	Base	Base	Income	Base		Base
Joint or Qualifying Widow(er)			Joint or Qualifying Widow(er)
-	-	10.00%	-	-		10.00%
17,000	1,700	15.00%	17,400	1,740		15.00%
69,000	9,500	25.00%	70,700	9,735		25.00%
139,350	27,088	28.00%	142,700	27,735		28.00%
212,300	47,514	33.00%	217,450	48,665		33.00%
379,150	102,575	35.00%	388,350	105,062		35.00%
Single			Single
-	-	10.00%	-	-		10.00%
8,500	850	15.00%	8,700	870		15.00%
34,500	4,750	25.00%	35,350	4,868		25.00%
83,600	17,025	28.00%	85,650	17,443		28.00%
174,400	42,449	33.00%	178,650	43,483		33.00%
379,150	110,017	35.00%	388,350	112,684		35.00%
Head of Household			Head of Household
-	-	10.00%	-	-		10.00%
12,150	1,215	15.00%	12,400	1,240		15.00%
46,250	6,330	25.00%	47,350	6,483		25.00%
119,400	24,618	28.00%	122,300	25,221		28.00%
193,350	45,324	33.00%	198,050	46,431		33.00%
379,150	106,638	35.00%	388,350	109,230		35.00%
Married filing Separately			Married filing Separately
-	-	10.00%	-	-		10.00%
8,500	850	15.00%	8,700	870		15.00%
34,500	4,750	25.00%	35,350	4,868		25.00%
69,675	13,544	28.00%	71,350	13,868		28.00%
106,150	23,757	33.00%	108,725	24,333		33.00%
189,575	51,287	35.00%	194,175	52,532		35.00%

2011 and 2012 Qualified Dividend Income Tax Rate is 15% (0% for lower brackets)
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Standard Deductions and Personal Exemptions

Standard Deductions *			Personal Exemption
	For			For
	FYE 2011	FYE 2012		FYE 2011		FYE 2012
Filing As:			Amount for each
Married or	11,600	11,900	Taxpayer	3,700		3,800
Qualifying Widow(er)
			Phase Out of Personal Exemption
Separate or	5,800	5,950		For
Single				FYE 2011		FYE 2012
			Personal exemptions begin to phase out
Head of Household	8,500	8,700	after the following threshold amounts:

			Joint or Qualifying
Additional Blind or Elderly			Widow(er)	For 2010 thru 2012 the phase-out for personal exemptions and itemized deductions do not apply!
Married	1,150	1,150	Single
Unmarried	1,450	1,450	Head/Household
			Married Filing
Taxpayer Claimed	950	950	Separately
as Dependent [1]

*Deduct the greater of standard or
itemized deductions
			Phase Out of Itemized Deductions
[1] If an individual who can be claimed as a dependent on another's return has earned income, the standard deduction is the greater of $950 for 2011 and $950 for 2012 or $300 for 2011 and 2012 plus the earned income (but no more than the standard deduction).				For
				FYE 2011		FYE 2012
			Filing as:
			Joint, Single, or	For 2010 thru 2012 the phase-out for personal exemptions and itemized deductions do not apply!
			Head of Household
			Married Filing
			Separate

Child Tax Credit			Kiddie Tax
2011 and 2012 child credit of $1,000 per child under age 17 - Phase out begins when AGI reaches $110,000 through $129,001 for joint filers, $75,000 throught $94,000 for Single/HOH filers.			Kiddie Tax applies to unearned income in excell of $1,900 for 2011 and applies to a child who has attained age 18 or is a full-time student and has not attained age 24 and whose earned income does not exceed half of their support.





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Education Credits and Deductions

American Opportunity Tax Credit			Lifetime Learning
(replaces Hope Credit)—Max of $2,500 for 2011 and 2012. Based on 100% of the first $2,000 and 25% of the next $2,000 on qualified tuition and course materials.			$2,000 max per year, 20% of up to $10,000 qualified tuition for 2011 and 2012.


			Phaseout for Lifetime Learning Credit is $51,000-$60,000 for single/HOH filer and $102,000-122,000 for married filing joint in 2011 and $52,000-$62,000 for single/HOH and $104,000-124,000 for married filing joint in 2012.
Phaseout for the American Opportunity Tax Credit are $80,000-$90,000 for single filer and $160,000-$180,000 for married filing joint in 2011 and 2012.



Qualified Higher Ed. Tuition Deduction			Student Loan Interest Deduction
Deduction—$4,000 above the line deduction for qualified tuition for 2011 if AGI is less than $65,000 for single/HOH and $130,000 married filing joint. $2,000 if AGI is between $65,000-80,000 for single/HOH and $130,000-160,000 married filing joint.			Deduction up to $2,500. Deduction phaseout for student loan interest deduction is $60,000-$75,000 for single/HOH and $120,000-$150,000 for married filing joint in 2011.




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Automobile Standard Mileage Rates

Amount Per Mile for 2010			Amount Per Mile for 2011

Use			Use
Business		0.51/.555	Business			$ 0.555
Charity Work		$ 0.14	Charity Work			$ 0.14
Medical/Moving		0.19/.235	Medical/Moving			$ 0.235
January through June /July through December
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Retirement Plans and Social Security

Retirement Plans			Social Security Taxes
	For			For
	FYE 2011	FYE 2012		FYE 2011		FYE 2012
Individual Retirement Accounts (IRAs)			Employee/with/Employer Match
Regular	5,000	5,000	SS Maximum Earnings	106,800		110,100
Additional if >50	1,000	1,000	Employee Tax Rate	4.20%		(1) 4.2%
			Combined Tax Rate for
Section 401(k) 403(b) or SAR-SEP			Employee & Employer	10.40%		10.40%
Regular	16,500	17,000
Additional if >50	5,500	5,500	Medicare Max.Earnings	Unlimited		Unlimited
			Base Tax Rate	1.45%		1.45%
Simple Plans (see 1 below)			Combined Tax Rate for
Regular	11,500	11,500	Employee & Employer	2.90%		2.90%
Additional if >50	2,500	2,500
			Combined Social Security and
Defined Contribution Plans			Medicare Tax Rates	13.30%		13.30%
	49,000	50,000
Defined Benefit Plans			Self Employed Individuals
	195,000	200,000	Tax Rate on SS Earnings	10.40%		10.40%
			Tax Rate on Medicare Earnings	2.90%		2.90%
1-Simple Plans-An employer normally makes a
contribution for each eligible employee in an
amount equal to the employee's salary reduction
contributions, up to a limit of 3% of			Earning Ceiling For Social Security
compensation. However, the employer can				For
reduce its contribution to 1% for as many as two				FYE 2011		FYE 2012
years out of five, if employees are notified.			Below Full Retirement
			Age [See 1 below ]	14,160		14,640
IRA Phase Out Considerations- If the taxpayer or			At Full Retirement Age	Unlimited		Unlimited
spouse is covered by an employer retirement
plan, consideration must be given to a phase out			[ 1 ] In the year a person reaches full retirement age (FRA) (depending on your birth date), $1 in benefits is deducted for each $3 earned above the now repealed age 65–69 earnings limit (which is $37,680 in 2011 and $38,880 in 2012). However, only earnings before the month in which full retirement age is reached are considered. Thus, for example, someone who earned $41,880 in January through July 2012, before turning FRA in August 2012, would lose $1,000 in benefits for 2012.
limitation as shown in the table below

2011 Phaseout Ranges for IRA's
	Modified AGI
Filing Status	Begins	Eliminated

Single or
Head of Household	56,000	66,000
			Taxable Social Security Benefits
Married Filing Jointly (Taxpayer covered			Social security received is taxable if AGI, plus tax-exempt interest, plus half of social security received exceeds these based amounts.
by employer plan	90,000	110,000

Married Filing Jointly (Taxpayer not covered				50%		85%
by employer plan but			Married Filing Joint	$32,001-44,000		> $44,000
Spouse is	169,000	179,000	Single/HOH	$25,001-34,000		> $34,000

2011 Roth IRAs			2011 Roth IRAs
Contributions are the same as Regular
IRAs above.

However, regardless whether or not a			However, regardless whether or not a
participant is in a qualified retirement plan			participant is in a qualified retirement plan
there is a phase out based upon AGI as follow:			there is a phase out based upon AGI as follow:
	2011 Modified AGI			2012 Modified AGI
Filing Status	Begins	Eliminated	Filing Status	Begins		Eliminated

Married Filing Joint or			Married Filing Joint or
Qualifying Widow(er)	169,000	179,000	Qualifying Widow(er)	173,000		183,000

Head of Household or			Head of Household or
Single	107,000	122,000	Single	110,000		125,000

Married Filing Separte	-	10,000	Married Filing Separte	-		10,000

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Long-Term Care and Health Savings Accounts

Long-Term Care Insurance			Health Savings Accounts
	You may deduct this			For
	much of your			Single Plans
	Annual Premiums			2011		2012
	For		Max Contribution	3,050		3,100
If you are Age:	2011	2012	Min Deductible	1,200		1,200
			Max Out of Pocket	5,950		6,050
Over 70	4,370	4,240	Catch Up (55+)	1,000		1,000
61 to 70	3,500	3,390
51 to 60	1,310	1,270		Family Plans
41 to 50	660	640		2011		2012
40 and under	350	340	Max Contribution	6,150		6,250
			Min Deductible	2,400		2,400
			Max Out of Pocket	11,900		12,100
			Catch Up (55+)	1,000		1,000

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Capital Gains Rates and Estimated Tax Penalties

Capital Gains 2011 and 2012			Individual Estimated Tax Payments
		Top	Generally, an individual must pay 25% of a
		Capital	“required annual payment” by Apr 15,
		Gain	June 15, Sept.15 and Jan. 15 to avoid an
Holding Period		Rates	underpayment penalty. (For taxpayers
			whose adjusted gross income on their
12 months or less		35.00%	prior return was over $150,000 ($75,000 if
More than 12 months		15.00%	married filing separately), the prior year
Depreciation recapture			safe harbor in figuring 2011/2012
on real-estate		25.00%	estimated taxes is
Collectibles and certain small
business stock		28.00%	Prior Year Tax %			110.00%
			or
			Current Year Tax %			90.00%

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Business Depreciation & Section 179 Expense

Depreciation			Section 179 Expense

36-Month Assets (Straight-Line)Most software				For tax years
				Beginning in
3-Year Assets (200% DB)Dies, molds, small				2011		2012
tools, certain horses			Maximum expense	500,000		139,000
			Reduced $1 for	2,000,000	560,000
5-Year Assets (200% DB)Autos, computers,			$1 Amt in excess
typewriters, copiers, many types of equipment,
private aircraft			Luxury Vehicles Under 6,000 Pounds
			Maximum depreciation for vehicles purchased in 2011 where the 50% 100% additional first-year deduction does not apply.
7-Year Assets (150% DB)Farm equipment

7-Year Assets (200% DB)Most manufacturing				Light Trucks/Van		Autos
equipment, office furniture, printing			Yr placed in service	3,260		3,060
equipment, oil and gas production equipment			2nd tax year	5,200		4,900
			3rd tax year	3,150		2,950
27.5-Year Assets (Straight-Line)Rental houses,			Each succeeding yr	1,875		1,775
apartments, low-income housing
			Maximum depreciation for vehicles purchased in 2011 where the 100% additional first-year deduction does apply.
39-Year Assets (Straight-Line) Nonresidential
buildings
				Light Trucks/Van		Autos
			Yr placed in service	11,260		11,060
			2nd tax year	5,200		4,900
			3rd tax year	3,150		2,950
			Each succeeding yr	1,875		1,775

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Corporate Tax Rates

CORPORATION REGULAR TAX			Personal Service Corporations
Rates for 2011 and 2012
		% on	A qualified personal service
Based Taxable	Tax on	Excess	corporation is taxed at a Flat
Income	Base	Over Base	Rate of			35%
-	-	15%
50,000	7,500	25%
75,000	13,750	34%
100,000	22,250	39%	Corporation Capital Gain Rates
335,000	113,900	34%	Capital gains are added to Gross income for
10,000,000	3,400,000	35%	tax calculation.
15,000,000 and over See Federal Chart

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Fiduciary Income Taxes and Rates

2011 Estate and Trust			2012 Estate and Trust
Taxes and Rates			Taxes and Rates
Based		% on	Based			% on
Taxable	Tax on	Excess	Taxable	Tax on		Excess
Income	Base	Over Base	Income	Base		Over Base

-	-	15%	-	-		15%
2,300	345	25%	2,400	360		25%
5,450	1,133	28%	5,600	1,160		28%
8,300	1,931	33%	8,500	1,972		33%
11,350	2,938	35%	11,650	3,012		35%

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Estate and Gift Tax Information

ESTATE AND GIFT TAX INFORMATION			GIFT TAX EXCLUSION INFORMATION
	For
	2011	2012	2011-2012 ANNUAL GIFT TAX EXCLUSION $13,000 - Each individual is allowed an annual gift tax exclusion of $13,000 per donee for 2011, with no limit to the number of donees. These gifts are not deductible to the giver nor are they taxable to the donee. Gifts in excess of the exclusion must be reported on a gift tax return. Gifts in excess of the exclusion are taxable but are offset with the Unified Estate and Gift Tax Credit until that credit is used up. Any amounts used to offset the gift tax will reduce the amount of credit available for the giver’s estate tax.

Annual Gift Tax Exclusion
per person	13,000	13,000

Lifetime Exemption
Gift Tax	5,000,000	5,120,000
Estate Tax *	5,000,000	5,120,000

* The estate tax is retroactively reinstated for 2010 with a $5 million per person ($10 million per couple) exemption or elect out of the estate tax and use the modified carryover basis for inherited assets in 2010. The rates also apply to 2012. Presumably, Congress will come up with a permanent solution for years after 2012.









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