Outline_2_Students_sp_2011

Outline_2_Students_sp_2011 - Outline 2 Student outline...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Outline 2 Student outline Chapter 3: Tax Determination; Personal and Dependency Exemptions January 26, 2011 NOLO CHAPTER 1 (Pages 16 bottom to 19 bottom) Read Chapter 3 (you can omit filing requirements 21 middle to 23 top, omit kiddie tax pages 31-33 top)--Tax Determination; Personal and Dependency Exemptions Read Chapter 2 (Section 2.3 pages 24-32) HOMEWORK: PROBLEMS 1, 2, 3, 4, 28, 30, 32, 33, 7, 31, 39, 40, 43, 41, 42, 19, 20, 47, 48, 49, 28, 29, 42, 51, 52 Please download the following forms from www.irs.gov : Form 1040: Schedule A and B Schedule C Schedule D Schedule E Schedule R Schedule SE Form 2441 Form 8863 NEW TAX LAWS: Individual Income Tax Rates On December 17, 2010, President Obama signed into law a two-year extension of the reduced individual income tax rates put in 2 place by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and subsequent legislation. Under the 2010 Tax Relief Act, the individual rates remain at 10, 15, 25, 28, 33, and 35 percent for all taxpayers through the end of 2012. IMPACT. The extension significantly benefits taxpayers in the top two income brackets who, without the extension, would have seen top rates of 36 and 39.6 percent, respectively, after 2010. However, the extension is temporary for all taxpayers. A 15, 28, 31, 36 and 39.6 rate structure will start after 2012 without further Congressional action. Also looming after 2012, higher income taxpayers will be hit with an additional 0.9 percent Medicare tax and a 3.8 percent Medicare contribution 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
tax (both discussed in connection with recent health care legislation, below). IMPACT. Higher-income taxpayers also benefit immediately from a two-year extension of the elimination of the limitation on itemized deductions and the personal exemption phase-out (discussed below). Marriage penalty relief, child tax credit and more. Along with extending the individual rate cuts for two years, the 2010 Tax Relief Act extends marriage penalty relief that was linked to the EGTRRA rate reductions, as well as enhancements to the popular child tax credit. The child tax credit remains at $1,000 for the 2011 and 2012 tax years. The 2010 Tax Relief Act also extends some enhancements to the earned income tax credit, the adoption credit and the dependent care credit for two years. Limitation on itemized deductions/personal exemption phase-out. Full repeal of the limitation on itemized deductions and the personal exemption phase-out was scheduled to expire after 2010. The 2010 Tax Relief Act extends full repeal of the limitation on itemized deductions and the personal exemption phase-out for two years, through December 31, 2012. Capital Gains and Dividends The Tax Relief Act of 2010 extends reduced capital gains and dividend tax rates beginning after December 31, 2010 and ending before January 1, 2013. Qualified capital gains and dividends will continue to be taxed at a maximum rate of 15 percent (zero percent for taxpayers in the 10 and 15 percent brackets). After 2012, however, the
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/07/2011 for the course ACCT 508 taught by Professor Frankel during the Spring '10 term at S.F. State.

Page1 / 17

Outline_2_Students_sp_2011 - Outline 2 Student outline...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online