New Tax Deductions
Here is a list of the most current new tax deductions for 2011, and 2012. Filing online will help you to claim every tax deduction you qualify for.
Some of the new tax deductions include:
Lower Tax Rates Extended
The 2010 Tax Relief Act extends through the end of 2012 the tax rates in effect in 2010. They had been scheduled to increase to the higher tax rates that were in effect prior to 2001.
For individuals dying after 2010, the federal estate tax continues with a $5 million exemption and a 35 percent maximum rate. The current federal estate tax rules are scheduled to end after 2012.
Lower Capital Gains and Dividend Tax Rates Extended Through 2012
The tax rate reductions for long-term capital gains remain in effect for 2011 and 2012.
Child Tax Credit
The credit of $1,000 per eligible child continues through 2012. The credit was extended by two years by the 2010 Tax Relief Act.
Payroll Tax Credit
Starting in 2011, the partial credit for payroll taxes paid by employers is no longer available.
Section 179 Expense Deduction
The $500,000 maximum amount of equipment placed in service that businesses can expense and the annual investment limit of $2,000,000 remain in effect for 2011.
Tax Credit for College Tuition
The American Opportunity Tax Credit remains in effect through 2012.
Earned Income Tax Credit (EITC)
Temporary increases in the Earned Income Tax Credit for filers with three or more children and the higher income levels for the phaseout of the credit have been extended through the end of 2012.
Mortgage Insurance Premiums
The special itemized deduction for mortgage insurance premiums paid on mortgages taken out after 2006 expires on Dec. 31, 2010.
Credit for Energy-Saving Home Improvements
The 30 percent tax credit of the cost of energy-saving home improvements was extended by the Tax Relief Act of 2010 through 2011.
For more information and to guarantee the biggest refund possible by utilizing new tax deductions available, visit TurboTax Online today.