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- Reduction of employee's share of social security tax, 2% from 6.2 to 4.2.
(effective for 2011 only)
Noteworthy tax laws expired in 2010, have been renewed/extended for two years 2011 and 2012:
these are only brief descriptions, research irs.gov for more information)
A number of these extended laws were part of the two major tax bills passed in 2001 and 2003, commonly referred to as the "Bush tax cuts." But only having a lifespan through 2010, they were going to expire.
- 10% tax bracket (would have reverted back to 15%)
- Current tax brackets of 25-28-33-35% (would have reverted back to 28-31-36-39.6%)
- Relief of 'marriage penalty' (standard deduction and tax rates remains 2x that of single)
- Continued capital gain rates of 0%/15%, qualified dividends treatment
- Child tax credit $1,000 (would have reverted back to $500);
Additional child tax credit eligibility remains at $3000 earned income
- Current AGI income ranges and credit percentages for dependent care credit
- American Opportunity Credit (formerly Hope Credit)
- Student loan interest not limited to 60 months, higher AGI eligibility
- Excluded employer education benefits, extended to graduate and not just if had qualified as work-related
- National Health Services Corp / Armed Forces Scholarships:
exception to being taxable when they require teaching/research services
- Coverdell ESA:
increased contribution and AGI eligibility, elementary/secondary education
- EIC: 3 qualifying children, higher MFJ AGI
- Adoption: exclusion not just special needs, increased max credit
- Suspension of higher income phase-out for personal exemptions and itemized deductions
- Adjusts AMT personal exemption adjustment
(Congress passes this temporay fix every year or two)
- Gift tax exclusion unified with estate tax exclusion at $5M, maixum 35% tax rate
- Educator K-12 deduction
- optional sales tax deduction (just for 2011)
- Tutition and Fees deduction
- treatment of IRA distribution for charity
Other tax laws or provisions expiring after 2010, also extended through 2012:
- 100% bonus depreciation 9/9/10 thru 12/31/11, 50% bonus depreciation for 2012
- Mortgage insurance premiums deduction
Home energy efficient property extended for 2011, but under former credit rates:
- 10% credit up to $500 maximum for property meeting certain efficiency requirements
- $200 max credit for windows/skylights/doors
- $150 each for water heater, gas/oil/propane furnace, elec heat pump, biomass stove, central air, max $300
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