Online
Tax
Guide
Important Tax Figures for 2012
The following table provides some important federal tax information for 2012, compared with 2011. Some of the dollar amounts change due to inflation. Other amounts change due to legislation.
|
Social Security/ Medicare |
2012 |
2011 |
|
Social Security Tax Wage Base |
$110,100 |
$106,800 |
|
Medicare Tax Wage Base |
No Limit |
No limit |
|
Individual Retirement Accounts |
2012 |
2011 |
|
Roth IRA Individual, up to 100% of earned income |
$5,000 |
$5,000 |
|
Traditional IRA Individual, |
$5,000 |
$5,000 |
|
Roth and traditional IRA additional annual "catch-up" contributions for account owners age 50 and older |
$1,000 |
$1,000 |
|
Qualified Plan Limits |
2012 |
2011 |
|
Defined Contribution Plan Dollar limit on additions on Sections 415(c)(1)(A) |
$50,000 |
$49,000 |
|
Defined Benefit Plan limit on benefits (Section 415(b)(1)(A)) |
$200,000 |
$195,000 |
|
Maximum compensation used to determine contributions |
$250,000 |
$245,000 |
|
401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2)) |
$17,000 |
$16,500 |
|
401(k), 403(b), 457 & SARSEP additional "catch-up" contributions for employees age 50 and older |
$5,500 |
$5,500 |
|
SIMPLE deferrals (Section 408(p)(2)(A)) |
$11,500 |
$11,500 |
|
SIMPLE additional "catch-up" contributions for employees age 50 and older |
$2,500 |
$2,500 |
|
Compensation defining highly compensated employee (Section 414(q)(1)(B)) |
$115,000 |
$110,000 |
|
Compensation defining key employee (officer) |
$165,000 |
$160,000 |
|
Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c)) |
$550 |
$550 |
|
Driving Deductions |
2012 |
2011 |
|
Business mileage, per mile |
55.5 cents |
51 cents (January 1st through June 30) 55.5 cents (July 1st through December 31) |
|
Charitable mileage, per mile |
14 cents |
14 cents for all of 2011 |
|
Medical and moving, per mile |
23 cents |
19 cents (January 1st through June 30) 23.5 cents (July 1st through December 31) |
|
Business Equipment |
2012 |
2011 |
|
Maximum Section 179 deduction |
$139,000* |
$500,000 |
|
Phaseout for Section 179 |
$560,000* |
$2 million |
|
Transportation Fringe Benefit Exclusion |
2012 |
2011 |
|
Monthly commuter highway vehicle and transit pass |
$125** |
$230 |
|
Monthly qualified parking |
$240 |
$230 |
|
Domestic Production Activities Deduction |
2012 |
2011 |
|
Percent of qualifying business net income |
9 percent (6% for oil and gas companies) |
9 percent (6% for oil and gas companies) |
|
Standard Deduction |
2012 |
2011 |
|
Married filing jointly |
$11,900 |
$11,600 |
|
Single (and married filing separately) |
$5,950 |
$5,800 |
|
Heads of Household |
$8,700 |
$8,500 |
|
Personal Exemption |
2012 |
2011 |
|
Amount |
$3,800 |
$3,700 |
|
Domestic Employees |
2012 |
2011 |
|
Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc. |
$1,800 |
$1,700 |
|
Kiddie Tax |
2012 |
2011 |
|
Net unearned income not subject to the "Kiddie Tax" |
$1,900 |
$1,900 |
|
Estate Tax |
2012 |
2011 |
|
Federal Estate Tax Exemption |
$5.12 million |
$5 million |
|
Annual Gift Exclusion |
2012 |
2011 |
|
Amount you can give each recipient |
$13,000 |
$13,000 |
* These amounts went down after a termporary increase expired. They could change if Congress acts to increase them again.
** This was a temporary increase as part of a law, which expires and reverts to $125 for 2012.
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The information in this Tax Guide is for general guidance only, and does not constitute legal advice, tax advice, accounting services, investment advice, or professional consulting. The information should not and may not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making decisions or taking actions, consult a professional adviser who has been provided with all pertinent facts relevant in your particular situation. Tax articles in this Guide are not intended to be used, and cannot be used, for the purpose of avoiding accuracy-related penalties that may be imposed on a taxpayer.