to all clients of Le's Office and friend! It is time to begin preparing for the 2012 income tax filing
season. Start by collecting and keeping track of your income and deduction documentation.
KEY 2012 EXEMPTION AND DEDUCTIONS :
1. PERSONAL EXEMPTIONS :
The personal exemption for each qualifying dependent for 2012
Exemption : 2012 : $3,800
2. STANDARD DEDUCTIONS : for tax year 2012
Filing Joint $11,900
Head of Household $8,700
Married Filing Sep $5,950
3. STANDARD MILEAGE RATES
The standard mileage rates for 2012 are :
a. Business :
$.555 / mile
b. Charitable work : $ .14 / mile
c. Medical/Moving : $ .23 / mile
2012 TAX RATES :
Income Tax Brackets
1. TAX RATE 10% : Single(S) , Married Joint(MJ), Head of Household (H)
$1 - $8,700(S)
* $1 - $17,400(MJ) * $1 - $ 12,400(H)
RATE 15% :
$8,701 - $35,350(S) * $17,401 - $70,700(MJ) * $12,401 - $47,350 (H)
3. TAX RATE 25%
$35,351 - $85,650(S) * $70,701 - $142,700(MJ)
* $ 47,351 - $ 122,300(H)
TAX CREDIT 2012 - DO YOU QUALIFY ?
Each year taxpayers claim a variety of tax credits for which
they are eligible. Tax credits are valuable because they are a dollar -for-dollar reduction of taxes owned.
1. The Earned Income Tax
Credit : is a refundable credit for low -income working individuals and families.
Maximum Credit : $457(none children ), $3043 (One Child), $5028(Two children), $5657 (Three or more Children).
You can claim EITC for Max 3 Chrildren, this is very NEW.
Investment income Limit for EIC : $3100
The Child and Dependent Care Credit : is for expenses paid for the care of children under age 13, or for a
disable spouse or dependent.
Child Tax Credit : is for people who have a qualifying child. The maximum amount of the credit is $1000
for each qualifying in 2012.
The Adoption Credit : is a tax credit of up to $10,960 in 2012 for qualifying
expenses paid to adopt a child.
The Credit for the Elderly or the Disablle : is a credit available to individuals who are either age 65 or
older or under age 65 and retired on permanent and total disability.
NEW 2012 TAX LAWS
- TAX SAVING FOR 2012
-Energy Tax Credits :
- Sale Tax Deduction for New Car Purchase
: You CAN NOT deduct the sale tax if you purchase your new
car in 2012.
- First-Time Homebuyer Credit :
- Education Credit :
You may qualify for maximum annual credit of $2500 per student.
Income Tax Credit : you may claim up to 3 children ( Max $5657). Taxpayer must be older than the
Child in order to claim EITC.
MORE 2012 TAX UPDATE . If you want
more 2012 tax update, please link the line below, you
will be automatic link direct to IRS web site :I R S Web SiteIf you need more information or have any question, please call Tom at 585-330-9263 or email us : email@example.com