Inflation Adjustments for 2011
28% Bracket -SP with a taxable income of S174,400.00. -M-J/SS with a taxable income of $212,300.00. -M-S with a taxable income of S106.150.00. -HH with a taxable income of S193,350.00.
33% Bracket –SP with a taxable income of $379,150, -MJ/SS with a taxable income of $379,150.00. -M-S with a taxable income of $189,575.00. -HH with a taxable income of S379,150.00.
IRA Contributions
The limit for IRA contributions remains at $5,000.00, For those age 50 or older at the end of 2011, the limit is $6,000.00. This limitation is for a combination of the Roth IRA and traditional IRA contributions. That is, a person cannot make a S5,000,00 contribution i to the traditional IRA and another $5,000.00 to the Roth IRA.
Roth IRA Income Limits
Eligibility to make contributions to your Roth IRA is phased out above certain adjusted gross income limits based on filing status. The following figures determine the amount a person can contribute to his/her Roth IRA, based upon his/her
Every year, most tax provision are index cd for inflation. To assist you with your planning for 2011, we are providing some areas of interest for this year’s adjustments. Please note, if there is something of interest, each IRS publication for the affected area has a “What’s New’ section near the front.
Deductions
Standard deductions involve the following:
S5,800.00 for a person who is
single;
S11,800.00 for someone who is married, filing jointly or a surviving spouse;
$5,800.00 for a married person filing separately; and
S8,500.00 for the head of the household.
In addition people over the age of 65 have other deductions:
$1,450.00 for someone who is single or the head of the household; and
S1,150.00 if the person is married.
Finally, regardless of age, an individual can claim personal exemptions up to $3,700,00.
Bracket Limits
The following figures are for taxable income, once the exemptions and deductions have been made. If your taxable income is above the highest amount shown, based on how you file your tax return, the excess is taxed at 35%.
10% Bracket -Single person (“SP) with a taxable income of S8,500.00. -Married person who files jointly or is a surviving spouse (“M-J/SS) with a taxable income of S17.000.00. -Married person who files separately (“M-S”) with a taxable income of $8,500.00. -Head of household (“IIII’) with a taxable income of
S12,150.00.
15% Bracket -SP with a taxable income of S34,500.00. -M-J/SS with a taxable income of S69,000.00. -M-S with a taxable income of S34,500.00. -HH with a taxable income of S46,250.00.
25% Bracket -SP with a taxable income of S83,600.00. -M-J/SS with a taxable income of S139,350.00. -M-S with a taxable income of S69,675.00. -IIII with a taxable income of S119,400.00.
Inflation Adjustments for 2011
28% Bracket -SP with a taxable income of $174,400.00, -MJ/SS with a taxable income of S212,300.00. -M-S with a taxable income of S106.150.00. -HH with a taxable income of S193,350.00.
33% Bracket -SP with a taxable income of S379,150. -M-ASS with a taxable income of S379,150.00. -M-S with a taxable income of S189,575.00. -HH with a taxable income of S379,150.00.
IRA Contributions
The limit for IRA contributions remains at S5,000.00. For those age 50 or older at the end of 2011, the limit is $6,000.00. This limitation is for a combination of the Roth IRA and traditional IRA contributions. That is, a person cannot make a $5,000.00 contribution to the traditional IRA and another $5,000.00 to the Roth IRA.
Roth IRA income Limits
Eligibility to make contributions to your Roth IRA is phased out above certain adjusted gross income limits based on filing status. The following figures determine the amount a person can contribute to his/her Roth IRA, based upon his/her