New Changes For Tax Year 2011

January 6, 2012 at 4:39 pm (IRS Information)

via IRS.gov

  • Standard mileage rates:
    • The 2011 rate for business use of your car is 51 cents a mile for miles driven before July 1, 2011, and 55 ½ cents a mile for miles driven after June 30, 2011.
    • The 2011 rate for use of your car to get medical care is 19 cents a mile for miles driven before July 1, 2011, and 23 ½ cents a mile for miles driven after June 30, 2011.
    • The 2011 rate for use of your car to move is 19 cents a mile for miles driven before July 1, 2011, and 23 ½ cents a mile for miles driven after June 30, 2011. See Publication 521, Moving Expenses.
  • The standard deduction has increased.
  • The amount you can deduct for each exemption has increased.
  • Alternative minimum tax (AMT) exemption amount has increased.
  • Health savings accounts (HSAs) and Archer MSAs:
    • For distributions after 2010, the additional tax on distributions from HSAs and Archer MSAs not used for qualified medical expenses has increased to 20%.
    • Also beginning in 2011, amounts paid for medicine or a drug are qualified medical expenses only if the medicine or drug is a prescribed drug or is insulin.
  • Roth IRAs: If you converted or rolled over an amount to a Roth IRA in 2010 and did not elect to report the taxable amount on your 2010 return, you generally must report half of it on your 2011 return and the rest on your 2012 return.
  • Designated Roth accounts. If you rolled over an amount from a 401(k) or 403(b) plan to a designated Roth account in 2010 and did not elect to report the taxable amount on your 2010 return, you generally must report half of it on your 2011 return and the rest on your 2012 return.
  • Alternative motor vehicle credit. You cannot claim the alternative motor vehicle credit for a vehicle you bought in 2011, unless the vehicle is a new fuel cell motor vehicle.
  • First-time homebuyer credit: To claim the first-time homebuyer credit for 2011, you (or your spouse if married) must have been a member of the uniformed services or Foreign Service or an employee of the intelligence community on qualified official extended duty outside the United States for at least 90 days during the period beginning after December 31, 2008, and ending before May 1, 2010.
  • Repayment of first-time homebuyer credit. If you have to repay the credit, you may be able to do so without attaching Form 5405.
  • Nonbusiness energy property credit. This credit is figured differently for 2011 than it was for 2010.
  • Health coverage tax credit. This credit has been extended, and the amount has changed.
  • Schedule L. Schedule L is no longer in use. You do not need it to figure your 2011 standard deduction.
  • The making work pay credit has expired. You cannot claim it on your 2011 return. Schedule M is no longer in use.
  • Mailing your return. If you are filing a paper return, you may be mailing it to a different address this year because the IRS has changed the filing location for several areas. Where to file
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