2012 TAX CHANGES
Here are a few changes to your taxes in 2012:
Annual Gift Tax Exclusion – Remains at $13,000
Lifetime Exemption for Gift and Estates – Increases to $5,120,000
(This exemption is scheduled to drop on 1/1/13 to $1mm)
35% Bracket Starts at (for joint returns) – $388,350
Those in 15% Bracket – Pay $0 tax on dividends and capital gains
(married with taxable income of up to $70,700; single with income of up to $35,350)
AMT Exemption Drops in 2012
Single – From $48,450 To $33,750
Joint Ret. – From $74,450 To $45,000
Maximum Contribution to 401k – Increases to $17,000
Wages Subject to Social Security Tax – Increases to $110,100
Now, for the special bonus… Starting January 2013, the Bush extended tax cuts expire. There will be major rate increases for everyone and decreases in deductions! Enjoy this year and get your tax planning in place immediately.