Change is in again, at least when it comes to the federal tax code.
Recently, the IRS published the federal tax amounts for the coming calendar year. Unlike last year, many of the inflation-adjusted tax amounts have been adjusted upward.
As taxes impact most of your business and financial decisions―and many of your personal ones―planning for them is crucial to your tax and transaction planning for the coming year.
The following guide includes many of the most important tax amounts for 2012 and compares them to the amounts applicable for 2011.
Quick Reference Guide for 2012 Federal Income Taxes
|
Social Security |
2012 |
2011 |
|
Social Security taxable wage base |
$110,100 |
$106,800 |
|
Employee portion of Social Security tax |
6.2% |
4.2% |
|
Self-employed Social Security tax |
12.4% |
10.4% |
|
Medicare tax |
1.45% |
1.45% |
|
Medicare taxable wage base |
No limit |
No limit |
|
Individual Retirement Accounts |
2012 |
2011 |
|
Individual IRA, up to 100% of earned income (combined limit for traditional and/or Roth) |
$5,000 |
$5,000 |
|
Additional annual catch-up contributions for account owners age 50 and older (Roth and traditional IRA) |
$1,000 |
$1,000 |
|
Annual Qualified Plan Limits |
2012 |
2011 |
|
Maximum compensation used to determine contributions |
$250,000 |
$245,000 |
|
Deferral limits for plans §401(k) SIMPLE §403(b) §457 |
$17,000 $11,500 $17,000 $17,000 |
$16,500 $11,500 $16,500 $16,500 |
|
Additional catch-up contributions for employees, age 50 and older §401(k) SIMPLE §403(b) §457 |
$5,500 $2,500 $5,500 $5,500 |
$5,500 $2,500 $5,500 $5,500 |
|
Highly Compensated Employee threshold |
$115,000 |
$110,000 |
|
Compensation defining Key Employee in top-heavy plan |
$165,000 |
$160,000 |
|
Compensation triggering Simplified Employee Pension (SEP) contribution requirement |
$550 |
$550 |
|
Maximum annual addition for Defined Contribution Plan |
$50,000 |
$49,000 |
|
Maximum annual benefit for Defined Benefit Plan |
$200,000 |
$195,000 |
|
Standard Deduction |
2012 |
2011 |
|
Married filing jointly and surviving spouse |
$11,900 |
$11,600 |
|
Single and married filing separately |
$5,950 |
$5,800 |
|
Head of household |
$8,700 |
$8,500 |
|
AMT Exemption Amounts |
2012 |
2011 |
|
Married filing jointly and surviving spouse |
$45,000 |
$74,450 |
|
Single |
$33,750 |
$48,450 |
|
Married filing separately |
$22,500 |
$37,225 |
|
AGI for Limit on Certain Itemized Deductions |
2012 |
2011 |
|
All filing status categories |
N/A |
N/A |
|
Personal Exemption |
2012 |
2011 |
|
Amount |
$3,800 |
$3,700 |
|
Personal Exemption Phase-Out |
2012 |
2011 |
|
Phase-Out Begins (adjusted gross income) |
N/A |
N/A |
|
Fully Phased Out (adjusted gross income) |
N/A |
N/A |
|
Driving Deductions, Per Mile |
2012 |
2011 |
|
Business mileage |
55.5¢ |
|
|
Charitable mileage |
14.0¢ |
14.0¢ |
|
Medical and moving mileage |
23.0¢ |
|
|
Business Equipment |
2012 |
2011 |
|
Maximum Section 179 expense deduction |
$139,000 |
$500,000 |
|
Phase-Out for Section 179, based on asset additions |
$560,000 |
$2 million |
|
Qualified Transportation Fringe Benefit Exclusion |
2012 |
2011 |
|
Commuter highway vehicle and transit pass, per month |
$125 |
$230 |
|
Qualified parking, per month |
$240 |
$230 |
|
Domestic Employees |
2012 |
2011 |
|
Annual threshold when a domestic employer is liable to withhold and pay FICA for babysitters, housekeepers, etc. |
$1,800 |
$1,700 |
|
Kiddie Tax |
2012 |
2011 |
|
For an under-age-19 child (or a full-time student under the age of 24), the net unearned income that is not subject to “kiddie tax” |
$1,900 |
$1,900 |
|
Tax Credits |
2012 |
2011 |
|
Maximum American Opportunity Education credit |
$2,500 |
$2,500 |
|
Federal Estate Tax |
2012 |
2011 |
|
Maximum tax rate |
35% |
35% |
|
Exemption amount, per decedent |
$5.12 million |
$5 million |
|
Gift Tax |
2012 |
2011 |
|
Annual amount, per recipient (without filing a gift tax return or reducing the lifetime gifting exemption amount) |
$13,000 |
$13,000 |
|
Lifetime gifting exemption |
$5.12 million |
$5 million |
