The IRS has Started to Change Its Image

The IRS answers phone calls, they are supplying taxpayers with more information than ever before, and also summarized categories from the 2012 tax code that some of us will never use i.e. estate taxes. 

This summarization has made it quite simple for the average taxpayer to do their own taxes. A large population even can file their returns for free.

Here are the numbers that the IRS wants taxpayers to know prior to filing their 2012 income tax return:

Personal & Standard Deductions:

$3,800 for each personal or dependent exemption

$11,900 for married couples filing jointly

$11,900 for qualifying widows and widowers

$5,950 for single people and married couples filing separately

$8,700 for those filing "Head of Household"

If you were blind in 2012 or a taxpayer who is 65+ you may qualify for higher standard deductions

AMT (Alternative Minumum Tax)

$78,750 for married couples filing jointly or for qualifying widows and widowers

$50,600 for those filing as single or head of household

2012 Income Tax Brackets by Percentage of Earnings:

10, 15, 25, 28, 33, and 35 percent

EIT (Earned Income Tax Credit) There are rules to obtain an EIT Credit:

0 Children to claim ▪ $13,980 single parent ▪ $19,190 married filing jointly

1 Child to claim ▪ $36,920 single parent ▪ $42,130 married filing jointly

2 Children to claim ▪ $41,952 single parent ▪ $47,162 married filing jointly

3+ Children to claim ▪ $45,060 sngle parent ▪ $50,270 married filing jointly

Investment Income:

$3,200 or less for 2012

Maximum Dependent Credits: (Children must Qualify)

0 Children to claim ▪ $475

1 Child to claim ▪ $3,169

2 Children to claim ▪ $5,236 

3+ Children to claim ▪ $5,891 

Capital Gains via Income Bracket

10-15% Brackets = 0%

25% - 35% Brackets = 15%

Estate Tax - Individual & Family

First $5.12 million exempt any monies left after that are taxed at 35% for an individual estate

First $10.24 million exempt any monies left after that are taxed at 35% for a family estate.

Ira Contributions

$5,000 for individuals under 49 years old and anyone over 50 may invest an additional $1,000.

Deferred Retirement Accounts

401(k) 403(b) for individuals under 49 years old they may invest $17,000 and anyone over 50 may invest an additional $5,500.

Mileage Rates

Business = .55.5 cents per mile ▪ Medical or qualified move = .23 cents/mile ▪ Charitable purposes = .14 cents per mile.