2011 Tax Law Changes

What 2011 Tax Law Changes Were Just Passed

Through the Tax Relief and Job Creation Act of 2010?

  • Tax rates will remain the same as 2010 for 2011 and 2012: 10, 15, 25, 28, 33, 35%
  •  Capital Gains rates will remain the same for 2011 and 2012:  0% and 15%
  •  Itemized deductions will be deductible in full for 2011 and 2012 – no phase-out
  •  Personal exemptions will be deductible in full for 2011 and 2012 – no phase-out
  •  Unemployment benefits extended for an additional 13 months
  •  Employees portion of  FICA (payroll) tax withholding will be reduced from 6.2% to 4.2% for 2011
  •  Child tax credit of $1,000 will remain in effect for 2011 and 2012
  •  Earned income credit treatment will continue to be consistent for 2011 and 2012
  •  American Opportunity Tax Credit (education credit) extended to 2011 and 2012
  •  Bonus depreciation of 100% in 2011 and 50% in 2012 with no limitation
  •  Estate tax rate will be 35% with a $5 million exclusion

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