What's New In Tax Services
Our goal is to work with individuals and businesses to minimize your taxes. Together with our investment advisors we will build a total investment plan designed to retain and grow your assets. We stay on top of tax law changes so you don't have to.
Tax Update for 2012 returns:
• Personal and dependency exemptions rise to $3,800.
• The standard deduction for singles rises to $5,950.
• The standard deduction for married filing joint rises to $11,900.
• The standard deduction for business miles increased to 55.5 cents effective 7/1/11.
• Medical travel increases to 23 cents, charitable travel to 14 cents effective 1/1/12.
• The elective deferral limit for employees who participate in 401(k), 403(b), and most 457 plans is increased from $16,500 to $17,000.
• The catch-up contribution limit for those aged 50 and over remains unchanged at $5,500.
• The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $58,000 and $68,000, up from $56,000 and $66,000 in 2011. For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $92,000 to $112,000, up from $90,000 to $110,000. For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $173,000 and $183,000, up from $169,000 and $179,000.
• The AGI phase-out range for taxpayers making contributions to a Roth IRA is $173,000 to $183,000 for married couples filing jointly, up from $169,000 to $179,000 in 2011. For singles and heads of household, the income phase-out range is $110,000 to $125,000, up from $107,000 to $122,000. For a married individual filing a separate return who is covered by a retirement plan at work, the phase-out range remains $0 to $10,000.
• The AGI limit for the saver’s credit (for low-and moderate-income workers) is $57,500 for married couples filing jointly, up from $56,500 in 2011; $43,125 for heads of household, up from $42,375; and $28,750 for married individuals filing separately and for singles, up from $28,250.
• The $2,500 maximum deduction for interest paid on student loans begins to phase out for a married taxpayers filing a joint returns 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.
• The foreign earned income deduction rises to $95,100, an increase of $2,200 from the maximum deduction for tax year 2011.
2012 Federal Income Tax Brackets
|
Tax rate |
Single filers |
Married filing |
Married filing |
Head of |
|
10% |
Up to $8,700 |
Up to $17,400 |
Up to $8,700 |
Up to $12,400 |
|
15% |
$8,701 - $35,550 |
$17,401 - $70,700 |
$8,701 - $35,350 |
$12,401 - $47,350 |
|
25% |
$35,351 - $85,650 |
$70,701 - $142,700 |
$35,351 - $71,350 |
$47,351 - $122,300 |
|
28% |
$85,651 - $178,650 |
$142,701 - $217,450 |
$71,351 - $108,725 |
$122,301 - $198,050 |
|
33% |
$178,651 - $388,350 |
$217,451 - $388,350 |
$108,726 - $194,175 |
$198,051 - $388,350 |
|
35% |
$388,351 or more |
$388,351 or more |
$194,176 or more |
$388,351 or more |
The tax department is always available year round to discuss these and other tax issues that may be of importance to you or your business.
