Just in case you thought the tax code wasn’t long enough at some 73,608 pages (according to CCH Group), there are a few additions you need to know about before you file your 1040.
Most of you are aware that this year we have a couple of extra days to file, extending the due date to April 17. And we can all breathe a sigh of relief that Congress extended the 15% capital-gains rates.
In addition, for those folks who inherited estates in 2011 that are valued at less than $5 million, you are home free from federal estate tax. But if your windfall is valued higher, you’ll face a 35% tax wallop.
There are a few other changes that may affect your pocketbook:
- You’ll have to file a new piece of paper, Form 8949, for Sales and Other Dispositions of Capital Assets, i.e., your capital gains and losses.
- If you didn’t report the taxable amount of monies you converted or rolled over from a traditional IRA to a Roth IRA or designated Roth in 2010 on your 2010 return, you will need to report half on your 2011 return and the rest on your 2012 return.
- You can get an alternative motor vehicle credit, but only if you purchased the vehicle or put it into service in 2011 and it is a new fuel-cell motor vehicle. Credit may also be available for the cost of converting a vehicle to a qualified plug-in electric vehicle. Use Form 8910.
- Standard mileage rates, which are 51 cents per mile for Jan. 1 through June 30 and 55.5 cents per mile for July 1 through Dec. 31.
- You’ll be happy to note that the alternative minimum tax (AMT) exemption amount increased to $48,450 ($74,450 if married filing jointly or a qualifying widow or widower; $37,225 if married filing separately).
In these tough economic times, every dollar counts, so make sure you get all the deductions you have coming to you!