President Obama signed into law on Friday, December 17, 2010, an extension to extend the tax cuts that was passed while George Bush Jr. was President.
The Internal Revenue Service, or IRS, that was preparing systems to calculate the higher tax rates that were to go into effect on January 1, 2011, must now change their systems to continue the tax cuts. Over 50 million taxpayers will have to wait to file their tax returns, to around mid- February, to allow the IRS to reprogram its processing systems for tax returns.
Who Will Be Affected?
The tax laws extended the 2011 payroll holiday tax, education credits, and estate tax. You will expect a delay in your tax refund if:
- Schedule A , Itemized Deductions (attached to Form 1040)
- Form 4684, Casualties and Thefts
- Form 8859, District of Columbia First-Time Homebuyer Credit
- Form 8917, Tuition and Fees Deduction
While the IRS will begin starting to accept tax returns around mid- January for those taxpayers not effected by the 2011 tax changes. For those who must file these forms, it will be mid to late February before the IRS will accept your return. Due to Emanicipation Day, taxpayers will have till April 18, 2010 to file their tax returns.
What are the 2011 Tax Changes
Under the 2010 Tax Relief Act, American Opportunity Ac, Unemployment Insurance Reauthorization, and Job Creation Act, tax changes are being enacted in 2011 to help some taxpayers:
- Federal estate tax still has a $5 million exemption and a maximum tax rate of 35%.
- Child tax credit will remain $1,000 through 2012.
- Parents and students can qualify for a credit of up to $4,000 of college tuition and fees.
- Educators is grades K-12 can receive up to $250 credit for classroom supplies they pay for out of pocket.
- Unemployment Insurance is extended up to 99 weeks for the unemployed.
- Social security tax is cut by 2% so the working class will see an increase in their paychecks.
2011 Tax Brackets
Look at the following lists to determine how the tax changes will effect your pay throughout the 2011 year:
2011 Tax Bracket - Single
- $0-$8,500 : 10%
- $8,500-$34,500 : 15%
- $34,500-$83,600 : 25%
- $83,600-$174,400 : 28%
- $174,400-$379,150 : 33%
- $379,150+ : 35%
2011 Tax Bracket - Married Filing Jointly
- $0-$17,000 : 10%
- $17,000-$69,000 : 15%
- $69,000-$139,350 : 25%
- $139,350-$212,300 : 28%
- $212,300-$379,150 : 33%
- $379,150+ : 35%
2011 Tax Bracket - Head of Household
- $0-$12,150 : 10%
- $12,150-$46,250 : 15%
- $46,250-$119,400 : 25%
- $119,400-$193,350 : 28%
- $193,350-$379,150 : 33%
- $379,150+ : 35%
2011 Tax Bracket - Married Filing Separately
- $0-$8,500 : 10%
- $8,500-$34,500 : 15%
- $34,500-$69,675 : 25%
- $69,675-$106,150 : 28%
- $106,150-$189,575 : 33%
- $189,575+ : 35%
The standard deduction for 2011 will increase a little from the deduction allowed in 2010. Your filing status will determine what your standard deduction is.
The 2011 standard deduction will be:
- $5,800 for unmarried taxpayers or married taxpayers filing separately,
- $11,600 for married taxpayers filing jointly, and
- $8,500 for taxpayers filing as head of household.
For more information on your 2011 Tax Return, visit the following site:
Rapid Refund Availability for 2010 Tax Returns in 2011
www.suite101.com/content/rapid-refund-availability-for-2010-tax-returns-in-2011-a339642
2010 Tax Return: Check Your Tax Refund Using Your Cell Phone
www.suite101.com/content/new-irs-phone-application-check-refund-status-on-your-cell-phone-a339126
When Will I Get My Refund? http://jennifer-nicole-allen.suite101.com/income-tax-returns--when-will-i-get-my-refund-a324724
IRS Ready to Accept 2010 Tax Returns: Free File For Some Taxpayers
www.suite101.com/content/irs-ready-to-accept-2010-tax-returns-free-file-for-some-taxpayer-a333614
TurboTax: Summary of Federal Tax Law Changes for 2010 to 2017
Jennifer Nicole Allen - My name is Jennifer and I entered the freelance writing world in 2008. I enjoyed writing while an undergraduate student. I received my ...
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