• Estate Tax Exemption: $5,120,000 (up $120,000 from 2011)
• Standard Deduction: $5,950 single/$11,900 joint (up $150/$300 from 2011)
• Income Limit for Full Roth IRA Contributions: $110,000 single/$173,000 joint (up $3,000/$4,000 from 2011)
• Personal Exemption: $3,800 (up $100 from 2011)
• Gift Tax Exemption: $13,000 (same as 2011)
• 401(k)/403(b)/457 Contribution Limit: $17,000 (up $500 from 2011)
• Limitation on Annual Benefit under Defined Benefit Plan: $200,000 (up $5,000 from 2011)

Until next time,

Jeff Fouts, Tax Attorney

Here’s a bio of sorts. I’m happily married with two kids. I’m a real small town tax lawyer, (Ellijay, pop. 1,584) not some fictional marketing character. I’ve represented tax clients against the IRS in all 50 states, and in 21 foreign countries. I have 18 years experience, thousands of satisfied clients, about 8 critics at last count, and an A+ BBB Rating.

I’m a member in good standing of the bar and have active memberships in courts from Georgia to Washington D.C., including the U.S. Supreme Court. My competitors covet my website ranking but my clients covet my sound legal counsel. I deal directly with my clients and have a small, tireless staff of tax specialists.

You can put off your tax problem, or put us to work for you on your tax case.

Related posts:

1. Top Five Facts About Dependents & Exemptions

1. Dependents may be required to file their own tax return. Even though you are a dependent on someone else’s tax return, you may still have to file your own tax return. Whether or not you must file a return depends on several factors, including: the amount of your unearned, earned or gross income, your marital status, any special taxes you owe and any advance Earned Income Credit payments you received.

2. Exemptions reduce your taxable income. There are two types of exemptions: personal exemptions and exemptions for dependents. For each exemption you can deduct $3,500 on your 2008 tax return. Exemptions amounts are reduced for taxpayers whose adjusted gross income is above certain levels, which is determined by your filing status.

3. Dependents may not claim an exemption. If you claim someone as a dependent, such as your child, that dependent may not claim a personal exemption on their own tax return.

4. Your spouse is never considered your dependent. On a joint return, you may claim one exemption for yourself and one for your spouse. If you’re filing a separate return, you may claim the exemption for your spouse only if they had no gross income, are not filing a joint return and were not the dependent of another taxpayer.

5. Some people cannot be claimed as your dependent. Generally, you may not claim a married person as a dependent if they file a joint return with their spouse. Also, to claim someone as a dependent, that person must be a U.S. citizen, U.S. resident alien, U.S. national or resident of Canada or Mexico for some part of the year. There is an exception to this rule for certain adopted children.

For more information on dependents and exemptions, including whether or not you or your dependent needs to file a tax return, see IRS Publication 501, Exemptions, Standard Deduction, and Filing Information.

Reference Links:

• IRS Publication 501, Exemptions, Standard Deduction, and Filing Information
• NWLC The Expanded Child and Dependent Care Tax Credit in the Family Tax Relief Act

No related posts.