TurboTax 2012 Tax Refund Calculator

Section 179 Deduction 2011, 2012

The Section 179 Deduction

You have a choice to either deduct the cost of certain types of property on your income taxes as an expense or you can calculate the depreciation of property purchased over a specified recovery period according to Section 179 of the United States Internal Revenue Code.

The property must be acquired for use in the active conduct of a trade or business. Buildings are not eligible for section 179 deductions.

Deducting Property Section 179

If you chose the 179 election you can only deduct the expense in the year the equipment is placed in use and it will be waived if not taken in that year. There are guidelines for certain types of property which produces income. Online income tax preparation software will be able to help with determining qualifying Section 179 deductions.

Three Limitations of Election 179

1. There is a dollar limitation

2. Limitation number two requires taxpayers who place more than $500,000 of section179 property into service during a single taxable year to reduce their 179 deduction by the amount exceeding the $500,000 threshold

3. Limitation number three states that the 179 deduction in any given year may not exceed the taxpayer’s total taxable income in that year

The Choice is Yours

If you decide to take the Section 179 deduction you must elect to do so. This deduction is not automatic. You have to make the choice to take it or to calculate the depreciation of property over a specified period of time as mentioned previously.

If you do elect to take the Section 179 deduction, you will need to use Form 4562. Once you opt to take the 179 deduction, you cannot change your mind about your selection of 179 property or revoke your election without approval from the IRS.

Calculating Your Income Tax Return

If you would like more information concerning electing to take Section 179 for property deductions I suggest you use TurboTax Online to prepare your income tax return. You can use the free tax estimator to see your refund (or tax owed) on every screen and it updates the amount as you answer questions.

You are never alone when using TurboTax Online because the Solve it Center is just a click away giving you the answers you need. They have an award winning website and are waiting to help you today!

 

Social Security Tax Rate 2011, 2012

Social Security Tax Rate

The Social Security tax rate is important for people who depend on making the most of the social security program. There are some are some interesting facts behind this.

The social security program was signed into action by President Franklin D. Roosevelt back in 1935 as part of “the new deal”. The main part of the program is sometimes abbreviated as OASDI (old age, survivors, and disability insurance).

Generally the term social security refers to retirement and the collecting of those benefits by dollars paid by the U.S. social security program. This program is the largest government program in the world and the single greatest expenditure in the federal budget.

As you might know the earliest age where you can claim your benefits is 62. If you start at 62 your benefits will be reduced by 25% for the rest of your life. You can wait until the standard age which is 66 to collect your full benefits. Each year you wait to collect until the age of 70, your benefits will increase, but you’ll need to know how it will be taxed, which is as follows:

Your benefits won’t be automatically taxed, but it depends on your income. Which for this situation will be defined as your adjusted gross income, plus tax free interest, plus half of your social security benefits.

• If your income is less than $25,000 on a single return or less than $32,000 on a joint return then your benefits will be tax free.
• People with incomes in between $25,000 and $34,000 will be taxed on up to 50% of their benefits.
• People with incomes over $34,000 can be taxed on up to 85% of their benefits.

You can choose how to have your benefits taxed. To avoid making quarterly tax payments you may want to ask the social security administration to withhold federal income taxes from your retirement benefits. You can do this with form W-4V.

There are also online services that can set you up with the right plan in a few clicks of the mouse, such as TurboTax Online.

You’ll just be asked for the basic information required to assess the right plan of action and you won’t be obligated to pay until you’re good and ready to. Make the proper arrangements today right from home at TurboTax Online.

 

2012 SUTA Tax Rate

SUTA Tax Rate

(SUTA) is the acronym for State Unemployment Tax Authority. Do you ever wonder where the money comes from to pay jobless people unemployment benefits?

In most cases it comes from the state’s unemployment insurance program. SUTA is a form of payroll tax and each state requires employers to pay a SUTA for their workers.

Calculating SUTA Tax Rate

SUTA tax is determined by taking a percentage of a worker’s salary that is capped at a certain annual pay level. FUTA is the federal unemployment tax and not to be confused with SUTA. The tax rate for SUTA can vary from state to state since it is a state tax and can change at any time. As a matter of fact, some businesses relocate to a different state just for better SUTA rates.

Some employers’ think of SUTA as a tax but, really it’s an insurance program. The payout of unemployment insurance is also handled differently from state to state. Because of the variance of the program it is better for employers’ to consult tax experts for advice on SUTA tax rates.

How to Calculate your Suta Tax Rate Instantly.

Try using Quickbooks withholding tax calculator. Federal & State withholding taxes are calculated for you, then you can choose to pay employees with their free direct deposit, or print checks & stubs on your own printer.

Reporting and depositing payroll taxes to the appropriate agency in an accurate and timely manner is vital to your business. Late or inaccurate deposits may result in penalties and interest charges. These complex payroll tax requirements may seem intimidating but by using the online payroll tax calculator you can simplify this responsiblilty.

When it comes to SUTA tax rates there really isn’t a safer way to calculate this because they vary from state to state, also they can and do change frequently. This is one area where it’s better to let the tax experts’ help you figure it out.

Business Tax Software

You do not need to know a thing about business taxes. The income tax software will customize itself to your type of business as it asks you questions. You will receive extra guidance to simplify tax preparation and to maximize tax savings. It’s really as simple as answering easy questions and let the tax software do all the hard work for you.

Helpful Tools to Save You Time

• Imports Your QuickBooks Data
• Simplifies Entering Income and Expenses
• Transfers Last Year’s Data
• Creates W-2 and 1099-MISC Forms
• Includes Extra Guidance for New Businesses

Because every state is unique and has its own set of rules and laws you have to consult the experts who specialize in these tricky areas of taxation. You do not want to file a tax return with errors. Don’t risk an audit from the IRS.

Give TurboTax Online a try today to see how easy this will be for you by letting the tax professionals handle the changing tax laws and rates.

 

W4 Tax Calculator 2012

W4 Tax Calculator

Is it time to reevaluate your W4 form? If you are receiving a large refund you may be withholding from your paycheck. The purpose of a W4 calculator is so you can have the correct federal income tax withheld from your pay.

You really should fill out a new W4 each year especially if you had a major change in your life. I’m referring to big changes in life or finances. If you receive $1,000 or more in a tax refund you may want to make an adjustment.

As an employee, when you fill out the W4 printable tax form you’re determining the amount of allowances you want to claim. This should be based on your particular tax situation for the year.

Giving Uncle Sam Too Much

Would you like to keep a little more money in each paycheck? What many Americans don’t know is we are giving Uncle Sam an interest free loan by having too much withheld from our paychecks.

If you get a large refund each spring you may want to consider having less taken out each pay period. Don’t make the mistake of having too little taken out or else you will owe in the spring.

Your Employer and your W4 Form

If you think April 15^th is when you pay your taxes you’re wrong. We are on a pay as we go system and we pay a little each time we receive our check. Your W4 Form lists your exemptions, deductions, and tax credits.

This is where you can make adjustments to calculate how much tax you will pay as you go along through the year. Our government is also collecting tax on self employment, investments, retirement plans, and alimony.

How to Manage Your W4 Form

Your W4 Form will determine how much withholding is paid. This is determined by two things. First of all by how much you make and then by the information you give about your life situation. Remember the more allowances you have the less tax withheld.

The biggest changes you need to keep updated is getting married or divorced, having children or buying a house. You cannot decide how many allowances you would like to claim. You must follow the guidelines put in place by the IRS.

Learn More from the Tax Experts

If you would like advice on how to calculate the correct W4 for your life situation you should use the tax software by TurboTax Online. They will guide you through the process of changing your withholding if your numbers reveal you need to make a change or if you just want to for whatever reason.

You can estimate your taxes for free by using their w4 tax calculator. You will benefit by using this tax preparation software for many reasons. They will accurately calculate your taxes guaranteed which reduces your audit risk.

The software is easy to use and you also have the guarantee of the biggest refund (or least tax owed) possible! Visit TurboTax Online to discover even more benefits waiting for you!

 

Federal Energy Tax Credits 2011, 2012

Federal Energy Tax Credits & Deductions

You may be eligible for a federal tax credit if you purchased an energy efficient product or renewable energy system for your home. If you installed new windows, doors or other energy efficient products you may be able to qualify for an energy tax credit

If you are familiar with the ENERGY STAR products don’t think they all qualify for the energy tax credit because not all of them qualify. Your energy bills will be lower if you use the products with that label but, make sure your specific item qualifies before you try to take the credit for it.

Energy Tax Credit for Principal Residence

First of all the energy tax deductions must be for your existing home and your principal residence. This tax deduction does not apply to new construction or rentals. The tax credit is for 30% of the cost up to $1,500 for the following items;

· Biomass Stoves

· Heating, Ventilating, Air Conditioning (HVAC)

· Roofs (Metal & Asphalt)

· Water Heaters (non-solar)

· Windows & Doors

Existing Homes & New Construction Principal Residence & Second Homes

This energy tax credit does not apply to rentals but, it will save you 30% of costs with no upper limit. The items listed here will qualify for this energy tax credit;

• Geothermal Heat Pumps
• Small Wind Turbines (Residential)
• Solar Energy Systems

Existing Homes New Construction Principal Residence

This energy tax credit does not apply to rentals or second homes. You will save 30% of the costs and up to $500 per .5 kW of power capacity.

• Fuel Cells (Residential Fuel Cell and Microturbine System)

Tax Credits

Tax credits are generally more valuable than a tax deduction because a tax credit reduces tax dollar for dollar. If you want to lower your energy bills, reduce air pollution, increase indoor comfort, lower gasoline costs, and release fewer emissions into the atmosphere then, please purchase fuel efficient vehicles and energy efficient appliances.

Federal Tax Incentives State Rebates

Some products will qualify for federal incentives and some will be eligible for state rebates. There are also state incentives for energy efficient homes, vehicles and equipment. You may want to check the web site for each state’s energy office for more information on specific state tax information.

You can claim your energy tax credit by using TurboTax Online. Their tax software will automatically file the proper tax forms for you.

You will not miss one single deduction you deserve to claim when you file with TurboTax. Make sure your energy tax credit deduction doesn't slip through the cracks and you get the biggest tax refund possible!

Pay IRS Business Tax Online 2011, 2012

Pay IRS Business Tax Online

The type of business you have determines what taxes you must pay and how you pay them.

Here are the four general types of business taxes;

1. Income Tax

2. Self Employment Tax

3. Employment Taxes

4. Excise taxes

First of all we have to talk about business structure because your form of business determines which income tax return form you must file. You should probably do some research before choosing your business structure.

Here are the general types of businesses;

• Sole Proprietorships
• Partnerships
• Corporations
• S Corporations
• Limited Liability Company (LLC)

Partnerships file an information return while all other business types file an annual income tax return. Most business owners pay income taxes that are set up on a quarterly basis. You will need to estimate your income as closely as possible so your taxes paid are in the proper ballpark range. You do not want to be faced with a huge tax bill at the end of the year.

Of course, if you’re an employee, your taxes are withheld from your paychecks for you. If the withholding amount was not enough then, you will pay taxes due at the end of the year. The IRS website has some helpful information about starting a business and keeping accurate records. For more information you may want to consult Publication 583.

Estimated Tax

As I briefly mentioned above, you will most likely pay as you go along during the year. What you need to do is analyze your profits and expenses to calculate how much income you have accumulated during the quarter.

With the amount being as accurate as possible you will be able to estimate taxes due. If you find it difficult to forecast your income due to irregularity then, I would probably over estimate to prevent a large tax due at the end of the year.

Self Employment Tax

This is primarily for people who work for themselves. Your payments are actually paying for your Social Security benefits for retirement. When you retire you will be able to then collect Social Security benefits because you paid your dues while running your business. The Social Security benefits include disability and survivor benefits along with hospital insurance (Medicare).

Self Employment Taxes Verses Employment Taxes

Do not confuse the two different types of employment taxes. The self employment taxes are taxes you pay as the business owner for yourself. The employment taxes are taxes you the business owner will pay for your employees. If you do have employees you must pay Social Security, Medicare, federal income tax withholding, and federal unemployment tax (FUTA).

Excise Tax

If you manufacture or sell certain products, operate certain kinds of businesses, use various kinds of equipment, facilities, or products, or receive payments for certain services, then you will pay excise tax.

There are several different forms to consult in this category. If you operate a truck over 55,000 pounds or if you are in the business of accepting wagers or the lottery, you may be liable for paying federal excise tax. Motor fuel is a big component of the excise tax so, if you’re in that type of business I’m sure you’re aware of the taxes due.

Learn More Here

If you would like help sorting out your business structure or determining what type of taxes are due, you should visit TurboTax Online to get top notch advice on paying IRS business taxes. Whether you’re a sole proprietor or in a partnership TurboTax Online has all of the answers and guidance you need.

As you are filling out your form you will be advised with very helpful tips as you go along. You will be able to pay your business taxes online with the click of a mouse! They do all the hard work for you! Don’t you have enough on your plate already? Let the Tax Experts guide you today!

As you are filling out your form you will be advised with very helpful tips as you go along. You will be able to pay your business taxes online with the click of a mouse! They do all the hard work for you! Don’t you have enough on your plate already? Let the Tax Experts guide you today!

Free Tax Return Calculator

Federal Income Tax Return Deductions 2011, 2012

Federal Income Tax Return Deductions

So let’s begin with the definitions shall we? A tax deduction and a tax-deductible expense will both affect a taxpayers income tax greatly. The deduction will represent an expense induced by the taxpayer and will be a variable amount that he or she could subtract, or deduct, from his or her gross income.

Claiming all eligible tax deductions can result in having to pay the alternative minimum tax for higher income taxpayers. And this will result in paying bigger amounts of taxes.

Don’t confuse this with a tax credit, which is a similar concept but will actually reduce the amount of tax owed, rather than reducing taxable income.

We have many different types of deductions available within the U.S. tax system. To keep to the basics, you will find that there are “above the line” and “below the line” deductions. After you calculate your total income, you then subtract your deductions from above a literal line on tax forms to determine your adjusted gross income.

After this, you will choose between a standard deduction or an itemized deduction from below the line on the tax form. You’ll want to choose what ends up being larger and then it will be subtracted from your adjusted gross income.

Now this is the part where you’ll be asking yourself, on which tax form is this line found? Where do I get it, where do I send it?

Just know that there are many online services such as TurboTax Online that will do all of this work for you plus an automatic search for other deductions and credits that you may quality for. Paper free, all online, all secure. Some of this may sound more complicated than it actually is, and that’s the beauty of getting the work done online. Go see for yourself.

New Tax Deductions

Inheritance Tax Law Changes 2011, 2012

Inheritance Tax Law Changes

What is an Inheritance Tax? An inheritance tax is also referred to as a death tax because it is a tax that is imposed on all estate money and property after an estate owner passes away and leaves their estate or a portion of their estate to another person.

Who has to Pay the State Inheritance Tax?

The relationship of the deceased to the beneficiary plays a part in determining who will pay the tax and how much. Some close relatives can be exempt from inheritance tax by statute.

Some states that currently collect a tax on inherited estate money or property are Connecticut, Maryland, Massachusetts, New Jersey, Nebraska, Pennsylvania, Oregon, New York, Indiana, Kansas, Louisiana, and Iowa. Since each state is likely to tax their residents differently, individuals need to research the inheritance tax laws in their state.

How is the Inheritance Tax Calculated?

Trying to figure out the amount of tax that will be owed depends on two different things:

* The total value of the estate.

* Any arrangements that were made before the time of death.

 What Inheritance Tax Law Changes can I Expect?

 The inheritance exemption amount has been increased from $2,000,000 to $3,500,000. That is an additional $1,500,000 that you may inherit before having to pay taxes. This is subject to change depending on actions taken by congress.

Inheritance Tax Law Changes Annually

Inheritance tax laws change every year, so it is very important to stay informed about current inheritance tax laws. You will want to know the inheritance exclusion amount before you give money away and you will also want to know what the inheritance tax rates are at your current giving date. Who you give the funds to will also affect the inheritance tax rate.

There are online tax services available to help you determine your liability for inheritance tax. There are many benefits to preparing your tax return online. For example, if you have experienced any life changes throughout the year (marriage, new baby, have bought or sold a house) an online tax service can help. I have found TurboTax Online to be a great service.

They will guarantee the accuracy of your return to the IRS and the state tax agency for your state return. They also ask a series of questions to guarantee the biggest refund possible, and if you have any questions they have tax professionals available 24/7 to answer them. Visit TurboTax Online today to prepare and file your federal and state tax returns.

 

Tax Law Questions for 2011, 2012

Tax Law Questions

Tax questions, yes all of us have tax questions. There are so many different categories of tax questions I’m not sure where to begin but, I will begin with the most popular.

What Should I Do If I Mess Up On MY Tax Return?

If you made a simple mathematical error, it will probably be caught during the processing of the tax return. If you forgot to attach a proper schedule, for example; Schedule C for the business owner then, the IRS will contact you for that information.

If you mistakenly did not report all of your income then, you will need to file an amended or correct return using Form 1040X. This is the Amended U.S. Individual Income Tax Return

If You File an Amended or Corrected Tax Return

If you forgot to attach a schedule, you will need copies of that form or any schedules with changes. If you have a corrected W-2 you will need to file that form as well. You have three years after the original tax return was filed or two years after the tax was paid on the original file to get your amended tax return to the IRS.

If You are Still Paying Last Years’ Taxes Can You Collect a Refund This Year?

If you are receiving a refund this year you will have to apply the refund towards the amount you still owe the IRS from last year. If you have any money left over after paying last years’ taxes in full then, you may keep what is left over. Remember to keep paying your regular payments until the amount owed is paid in full. To put it simply, you will not see your refund if you still owe money.

Can I Split my Refund?

You may be wondering what a split refund is. Well, it is allocating funds to different places. You can divide your refund into three different proportions and they don’t have to be even. You can direct deposit your refund in up to three different accounts with United States Financial Institutions.

Find All of the Answers to Your Questions

I’ve listed a few of the most popular questions but, I’m sure there are more tax law questions that need answers. If you would like all of your income tax questions answered you should use TurboTax Online which will be tailored to your unique life situation.

Tax Experts Make it Their Job to Study Tax Laws

The Tax Experts at TurboTax Online make it their job to keep on top of all the new tax laws for every year. Keeping up to date on tax laws is very difficult unless you’re an accountant or tax guru. Why don’t you let them do all the hard work for you?The tax preparation software will ask you simple questions about your life and finances. From there the tax software will scour your return and make sure you have a custom fit like a fine tailored suit. Don’t miss out on the deductions you deserve to claim!

There are a lot of new tax laws which can dramatically affect your tax return this year. Don’t risk an audit by sending in a return full of errors just because you didn’t know tax laws had changed. Let TurboTax Online steer you clear of trouble to start the New Year on a positive note!

 

IRS Federal Income Tax Advice 2011, 2012

IRS Federal Income Tax Advice

Don’t you wish you had the same team of tax advisors that help Donald Trump with his federal income tax return?

It’s never too late to gain knowledge on how to make positive changes concerning your personal financial strategy. You know there are two things you can always count on, Death and Taxes.

How to Choose the Best Tax Form

• 1040EZ No Dependents
• 1040A If You Don’t Qualify to Use the 1040EZ or 1040
• 1040 Standard Income Tax Return

Do You Know Which Form is Best for Your Life Situation?

Publication 17, Your Federal Income Tax, the only tax guide most individuals need, is a publication from the IRS available to the public to guide them through the preparation of their federal income tax return. The publication is 305 pages long and I don’t know about you but, I get a headache just thinking about reading a tax guide every year.

The Best Tax Advice I Can Give You

If you have never tried an online federal income tax preparation software program, now is the time to give it a try. That is the best advice I can give you regarding filling out a tax return form. All of us know how powerful computers are and it’s time to put the power to good use for yourself.

Let the Tax Experts Do the Hard Work For You

You simply start out by answering basic questions about yourself, for example; “Are you married?” As you enter data the software is scanning your life situation and will guide you step by step from start to finish. If you have not made the wisest choice of which Form to use, the software will recognize this and advise you to make a switch to a Form that will give you better results.

Biggest Refund Guaranteed

I know we all want the biggest refund possible or the least tax owed. This guarantee is exactly what you are promised form TurboTax Online. If you get a bigger refund using any other tax preparation method, they will give you your money back. It’s that simple.

Tax Advice with the Click of a Mouse

It’s not all about the biggest refund though. It’s about the help along the way and the low level of frustration that really matters also.

You can trust TurboTax Online because your information will be guarded by a firewall protected server and they use the same encryption technology used by banks.

If you’re new to tax software they have special guidance for first time users. TurboTax Online has an entire team of Tax Experts waiting to help you prepare your federal income tax return. Get Started Today!

 

New Federal Income Tax Laws 2011, 2012

New Federal Income Tax Laws

Are you up-to-date on the new tax laws that will be imposed for 2011 and 2012? The changes that have been put into place could save you a lot of money when
you file your taxes this year.

First of all the standard deductions will be increased for most taxpayers. The increased amounts are reflected by your filing status:

• Married couples filing jointly will be able to take a standard deduction of $11,400.
• For Singles and Married couples filing separately they can take a standard deduction of $5,700.

Other changes you can expect in this year are:

• You can contribute more in your 401K-retirement account and your IRA account before having to pay tax on it.
• The mileage deduction has decreased by 2.5cents.
• The gift tax exclusion has increased by $1,000.
• The earned income credit has increased more than $2,000 from 2008.

These changes are just some of the new tax rules. To make sure you are benefiting from all of the changes that will be put into place you should prepare your taxes online. Online services can be a great help in keeping you up to date on the ever changing tax laws.

Most services ask you a series of questions based on you’re filing status and tax situation to make sure all of the necessary tax forms have been completed and are accurate.

Preparing your tax return is stressful enough, wouldn’t it be great to have a guarantee that your return is accurate and you have been guaranteed the biggest refund possible according to the new laws and amounts that can change every single year.

TurboTax Online does just that. They are a safe and secure service to help ease the process of filing your tax return. Their detailed system makes sure you have claimed all of the deductions available to you while checking your return for errors to guarantee the accuracy and reducing your risk of an audit.

Visit TurboTax Online today to learn more about the upcoming new tax laws and start preparing your taxes today.

 

Personal Income Tax Advice 2011, 2012

Personal Income Tax Advice

Are you looking for advice in preparing your tax return this year? The best advice I can give you is to use an online service. If you want to save yourself from a huge headache and wasted time and money then an online tax preparation service is right for you.

Would you like to be given a list of all the necessary documents you need to complete your tax return?

Are you looking for the biggest refund or maximizing your deductions to reduce your tax liability?

Do you want a service that will guarantee the accuracy of your return, reduce the risk of an audit by the IRS and a safe and secure company to process your return?

Do you have any life changes such as marriage, a new baby, and retirement or have you bought or sold a house this year?

If you answered yes to any of the above questions then you should definitely consider an online tax service such as TurboTax Online.

Other benefits you can expect from an online service is e-filing your return. You’ll receive notification that your return has been filed and accepted by the IRS for your Federal return and your State tax agency.

Visit TurboTax Online today to start preparing your tax return and to have any questions you may have answered by their customer support center that is available 24 hours a day to assist you.

 

New Car Sales Tax Deduction 2011, 2012

New Car Sales Tax Deduction

Did you buy a new vehicle this year? If so you may qualify for an additional tax break.

The American Recovery and Reinvestment Act allows many hard-working taxpayers to claim a sales tax deduction for state and local sales tax paid on the purchase of new vehicles. This includes cars, light trucks, motor homes and motorcycles.

The deduction is available on new vehicles purchased from Feb. 17, 2009 through Dec. 31, 2009. In states that don't have sales tax, the law provides a deduction for other taxes or fees paid, so you will need to research the deduction allowed for your state. This deduction is available whether or not a taxpayer itemizes deductions on Schedule A.

The limit for this deduction is $49,500 for the taxes and fees you have paid for the purchase price of an eligible vehicle. The deduction is reduced for joint filers with modified adjusted gross incomes (MAGI) between $250,000 and $260,000 and other taxpayers with MAGI between $125,000 and $135,000. Taxpayers with higher incomes do not qualify for this additional deduction.

Used cars are not eligible for this deduction, new vehicles only (you must be the first owner of the vehicle). Leased vehicles and rentals do not qualify for this tax deduction. The law specifies that the deduction applies to the purchase of qualified new vehicles. A lease is not a purchase for the purpose of this deduction.

There is no limit on the number of cars for which you can claim the deduction, provided each car is a qualified new vehicle.

For more information on the new car sales tax deduction, visit TurboTax Online. They have all the latest tax information in the support section of their website.

 

New Tax Deductions for 2011, 2012

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.

Estate Tax

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.

 

Tax Breaks for 2011

Tax Breaks

Some tax breaks are available every year, and you can easily remember to file them every time tax season comes around. These tax breaks include tax credits for income earned, mortgage interest deductions, certain retirement plan deductions, charitable contribution deductions, and child care deductions. However, new tax breaks are introduced every year as well, and you need to find out what they are in order to maximize your tax deductions. Even if you decide to opt for the standard deduction this year, you should try to learn about other deductions that you may be eligible for in the future, and determine whether they are worth itemizing. Here are some of the more notable tax breaks for 2011.

Social Security Tax Deduction

The 2011 payroll tax cut will reduce the amount of social security taxes that you need to pay. If you are self-employed, you have to remember to include the deduction in the “employee” portion when you are filing your social security taxes.

Energy Efficiency Tax Credits

The 2011 energy efficiency tax credits are not as generous as those offered in the previous year. However, there are new tax breaks that will give you substantial credits when you purchase new appliances, fixtures, and other things that can make your home more energy efficient, such as water heaters, biomass stoves, insulation, and windows. If you are planning to install a solar, wind, or geothermal system, you can get a tax deduction that is worth 30% of the total installation cost. Considering the high costs of installing such systems, this new tax break can help you save a large sum of money. For instance, if the total cost of installing a solar hot water system is $10,000, you can save $3,000 because of the deduction.

Commonly Overlooked Tax Deductions

When you are filing your tax returns, it is essential that you try to remember all the expenses that you have made in the previous year, and figure out which ones are tax-deductible. The most effective way to ensure that you do not miss any deduction is to use tax preparation software such as TurboTax. Here are some of the most commonly overlooked tax deductions:

Medical Expenses

Other than getting tax deductions for FSA or HAS contributions, you are also entitled to deductions for medical expenses that are not covered or reimbursed by your health insurance. Such deductions can be itemized if they amount to 7.5% or more of AGI.

Job Hunting Expenses

If you are seeking new employment in the same field, you are allowed to deduct the costs of career coaching, resume services, transportation for going to interviews, and others.

Moving Expenses

If your new job requires you to relocate to a place that is more than 50 miles away, you are eligible for deductions for moving expenses and other related travel expenses.

Taxes Paid Elsewhere

You can get deductions for taxes that you paid to other entities, such as property taxes and local or state income tax. If you are not required to pay state income tax, you can file a deduction for sales tax.

To find all of the new tax breaks please visit TurboTax Online. TurboTax Online has everything you need to get the biggest refund possible.