According to Forbes, before filing his or her federal tax return, a taxpayer should know how six recent tax code changes could significantly affect an individual’s tax bill in 2012.
1. Payroll Tax Credit – The 2012 self-employment tax rate is reduced from 12.4% to 10.4%.
2. W-2 Forms – The value of an employee’s health care benefits will now be reported on his or her W-2.
3. Roth Conversions – Taxpayers who had a 2010 Roth conversion may owe tax in 2012 if the entire conversion was not reported in 2010.
4. Tax Relief for Homeowners – Homeowners who had a foreclosure or mortgage restructuring on a principal residence can exclude income of up to $2 million ($1 million for married taxpayers filing separately) on the mortgage forgiveness.
5. The Standard Deduction and Personal Exemption amounts have increased across the board.
6. Alternative Minimum Tax - The AMT exemption is increased to $50,600 for single taxpayers and $78,750 for married taxpayers filing jointly.
Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles, Orange, Ventura, San Bernardino, Riverside and Santa Barbara Counties. Call Los Angeles Estate Planning and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.