IRS Announces Its 2012 Inflation Adjustments
The IRS today announced its 2012 items which are adjusted for inflation. This list usually is not published until closer to Thanksgiving but came out early this year. Full details can be found in Revenue Procedure 2011-52. However, some of the highlights are:
1) The personal and dependent exemption will rise to $3,800.
2) The standard deductions for singles and married couples filing separately will rise to $5,950, for married filing jointly it will rise to $11,900 and for heads of household it will rise to $8,700.
3) The $2,500 maximum deduction for interest paid on student loans will not change for single taxpayers but will increase for married taxpayers filing joint returns. The phaseout will now begin at $125,000 and be completely phased out at $155,000.
4) The estate tax credit will rise in 2012 to $5,120,000 per person. Keep an eye on this one as it will be a hot topic in the Presidential race.
To learn more about increases in other deductions that affect your taxes, contact our tax attorney at Wood, Atter & Wolf, P.A. located in Jacksonville and Ponte Vedra Beach, Florida.
