New Tax Laws 2011

Inflation has caused the Internal Revenue Service to increase personal exemptions and standard deductions. New tax laws 2011 codes and rules can be confusing, but they don’t have to be. 

Use TurboTax Online to put new tax laws 2011 information automatically into your income tax return.

New Tax Laws 2011 Tax Year:

Personal and Dependent Exemptions is $3,800 – a $100 increase

New Standard Deduction is:

•        $11,900 for Married Couples Filing Jointly – a $300 increase
•        $5,950  for Singles and Married Filing Separately – a $150 increase
•        $8,700 for Head of Household – a $200 increase

More than half of Americans take the standard deduction as opposed to itemizing deductions such as, charitable contributions, mortgage interest and state and local taxes.

Maximum Earned Income Tax Credit

The (EITC) for low to moderate income workers rises to $5,891 from $5,751. The maximum income limit for the earned income tax credit increases to $50,270. The earned income tax credit varies due to family size, income levels, filing status and other related criteria.

Foreign Earned Income Deduction

The foreign earned income deduction rises to $95,100 – an increase of $2,200 from the maximum deduction

Student Loan Interest

For interest paid on student loans the phase out ranges remain the same for single taxpayers. The 2,500 maximum for deduction for interest on student loans for married taxpayers filing a joint return begins to phase out at $125,000 and is completely phased out at $155,000 which is actually a $5,000 increase from last year.

Estate Tax and Annual Gift Tax Exclusion Amount

The basic exclusion from estate tax amount is $5,120,000 – an increase of $120,000 from last year.
The annual gift tax exclusion rate remains at $13,000.

Home Energy Efficiency Tax Credits

If you made your home more energy efficient and you chose approved products you might be eligible for energy tax credits. Water heaters, HVAC, insulation, asphalt and metal roofs are energy efficient home improvement that could lower your tax bill dollar for dollar.

New Tax Laws 2011 Information

This list is just the beginning of the new tax laws for 2011.
TurboTax Online tax software will search for all of the new tax laws, so your income tax return can be filed with confidence knowing it is up to date with the new tax laws for 2011. You will avoid interest and penalties due to an incorrect tax return by using tax software.