Posted on Feb 24, 2012
The IRS is required by law to adjust certain tax numbers each year. Here are some of the adjusted numbers you’ll need for your 2012 tax planning.
STANDARD MILEAGE RATE for business driving remains at 55.5¢ a mile. Rate for medical and moving mileage decreases to 23¢ a mile. Rate for charitable driving remains at 14¢ a mile.
SECTION 179 maximum deduction decreases to $139,000, with a phase-out threshold of $560,000.
TRANSPORTATION FRINGE BENEFIT limit decreases to $125 for vehicle/transit passes and increases to $240 for qualified parking.
SOCIAL SECURITY taxable wage limit increases to $110,100. Retirees under full retirement age can earn up to $14,640 without losing benefits.
KIDDIE TAX threshold remains at $1,900 and applies up to age 19 (up to age 24 for full-time students).
NANNY TAX threshold increases to $1,800.
HSA CONTRIBUTION limit increases to $3,100 for individuals and to $6,250 for families. An additional $1,000 may be contributed by those 55 or older.
401(k) maximum salary deferral increases to $17,000 ($22,500 for 50 and older).
SIMPLE maximum salary deferral remains at $11,500 ($14,000 for 50 and older).
IRA contribution limit remains at $5,000 ($6,000 for 50 and older).
ESTATE TAX top rate remains at 35%, and the exemption amount increases to $5,120,000.
ANNUAL GIFT TAX EXCLUSION remains at $13,000.
ADOPTION TAX CREDIT decreases to $12,650 for adoption of an eligible child.
ALTERNATIVE MINIMUM TAX (AMT) exemption decreases to $33,750 for singles and to $45,000 for married couples.