Taxes

This page offers various information regarding the 2011 Tax Year. Please keep in mind that many items can affect an income tax return, and change the taxability or deductibility of certain items. The information here is for quick reference only. Please check with your professional advisor if you have questions or concerns about your personal tax situation.

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2011 Income Tax Brackets
2011 IRA & Retirement Plan Limits
2011 Standard Deductions, Exemptions, and Gift Tax Exclusion
Social Security Tidbits

2011 Income Tax Brackets

Taxable Income: Taxable Income = Income minus Deductions and Exemptions

Tax Rates: Income tax rates are “progressive”. For instance, if your filing status is Married Filing Jointly and you had $139,350 in taxable income, the first $17,000 would be taxed at 10%, the amount between $17,001 and $69,000 would be taxed at 15%, and the amount from $69,001 to $139,350 would be taxed at 25%.

Married Filing Jointly

Taxable Income Tax Rate $0 - $17,000 10% $17,001 - $69,000 15% $69,001 - $139,350 25% $139,351 - $212,300 28% $221,301 - $379,150 33% over $379,150 35%

Single

Taxable Income Tax Rate $0 - $8,500 10% $8,501 - $34,500 15% $34,501 - $83,600 25% $83,601 - $174,400 28% $174,401 - $379,150 33% over $379,150 35%

Married Filing Separately

Taxable Income Tax Rate $0 - $8,500 10% $8,501 - $34,500 15% $34,501 - $69,675 25% $69,676 - $106,150 28% $106,151 - $189,575 33% over $189,175 35%

Head of Household

Taxable Income Tax Rate $0 - $12,150 10% $12,151 - $46,250 15% $46,251 - $119,400 25% $119,401 - $193,350 28% $193,351 - $379,150 33% over $379,150 35%

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IRA and Retirement Plan Contribution Limits *

Plan Type Under Age 50 Age 50 and Over Traditional IRA $5,000 $6,000 Roth IRA $5,000 $6,000 SIMPLE IRA $11,500 $14,000 SEP-IRA $49,000 $49,000 401(k), 403(b), 457 $16,500 $22,000

* Contributions to many of the plans in this table are subject to various other important restrictions and limitations. Please consult a professional to determine how these and other limitations may affect the amount and/or tax deductibility of your contributions.

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Standard Deductions, Exemptions, and Gift Tax Exclusion

Tax Item   Personal Exemption $3,700 Standard Deduction  - Married Filing Jointly  - Single  - Married Filing Separately  - Head of Household $11,600 $5,800 $5,800 $8,500 Gift Tax Exclusion $13,000

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Social Security Tidbits

Payroll Deductions: Maximum payroll earnings subject to FICA tax = $106,800

Loss of Social Security Benefits due to Earnings: Prior to “full retirement age”, $1 in benefit is lost for every $2 earned over $14,160. In the year of full retirement age, $1 in benefit is lost for every $3 earned over $37,680. Beginning in the month full retirement age is reached, there is no limit on earnings.

Taxability of Social Security Income: Taxation of Social Security benefits is based upon what the IRS calls Modified Adjusted Gross Income (MAGI).

If you and your spouse file a joint income tax return - 50% of your Social Security benefits are subject to income tax if your MAGI is between $32,000 and $44,000. If your MAGI exceeds $44,000 - 85% of your Social Security benefits are subject to income tax.

If you file a federal income tax return as an individual with a MAGI between $25,000 and $34,000 - 50% of your Social Security benefits are subject to income tax. If your MAGI exceeds $34,000 - 85% of your Social Security benefits are subject to income tax.

If you are married filing a separate income tax return, you might have to pay income tax on your entire Social Security benefit.

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