Important Numbers for 2012 Returns

The following numbers apply to 2012 returns:

Standard Deduction

  • Single – $5,950
  • Married filing separately – $5,950
  • Married filing jointly – $11,900
  • Head of Household – $8,700
  • Surviving Spouse – $11,900

Personal Exemption

  • Personal and Dependent – $3,800

Long Term Capital Gains*

  • If in the 10% or 15% income bracket – 0%
  • If in any other income bracket – 15%

* Short term capital gains are taxed as ordinary income.

Although the American Taxpayer Relief Act made numerous changes to tax rates, the majority of these changes do not tax effect until 2013, so their effects won’t be felt for some time.  However, the failure of the Act to include an extension of the 2% payroll tax holiday will mean that most taxpayers will see an immediate decrease in their take home pay.

This blog brought to you by TaxLane, LLC, providing tax preparation and consulting services in greater Pittsburgh, including the communities of Allison Park, Hampton, Shaler, and Glenshaw.

IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the Internal Revenue Service, we inform you that any U.S. tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication.