The IRS has Started to Change Its Image

Need a simple breakdown of the 2012 Tax Code? Here's a look at dependent credits, tax brackets by percentage of earnings, personal and standard deductions and more.

The IRS answers phone calls, they are supplying taxpayers with more information than ever before, and also summarized categories from the 2012 tax code that some of us will never use i.e. estate taxes. 

This summarization has made it quite simple for the average taxpayer to do their own taxes. A large population even can file their returns for free.

Here are the numbers that the IRS wants taxpayers to know prior to filing their 2012 income tax return:

Personal & Standard Deductions:

$3,800 for each personal or dependent exemption

$11,900 for married couples filing jointly

$11,900 for qualifying widows and widowers

$5,950 for single people and married couples filing separately

$8,700 for those filing "Head of Household"

If you were blind in 2012 or a taxpayer who is 65+ you may qualify for higher standard deductions

AMT (Alternative Minumum Tax)

$78,750 for married couples filing jointly or for qualifying widows and widowers

$50,600 for those filing as single or head of household

2012 Income Tax Brackets by Percentage of Earnings:

10, 15, 25, 28, 33, and 35 percent

EIT (Earned Income Tax Credit) There are rules to obtain an EIT Credit:

0 Children to claim $13,980 single parent $19,190 married filing jointly

1 Child to claim $36,920 single parent $42,130 married filing jointly

2 Children to claim $41,952 single parent $47,162 married filing jointly

3+ Children to claim $45,060 sngle parent $50,270 married filing jointly

Investment Income:

$3,200 or less for 2012

Maximum Dependent Credits: (Children must Qualify)

0 Children to claim $475

1 Child to claim $3,169

2 Children to claim $5,236 

3+ Children to claim $5,891 

Capital Gains via Income Bracket

10-15% Brackets = 0%

25% - 35% Brackets = 15%

Estate Tax - Individual & Family

First $5.12 million exempt any monies left after that are taxed at 35% for an individual estate

First $10.24 million exempt any monies left after that are taxed at 35% for a family estate.

Ira Contributions

$5,000 for individuals under 49 years old and anyone over 50 may invest an additional $1,000.

Deferred Retirement Accounts

401(k) 403(b) for individuals under 49 years old they may invest $17,000 and anyone over 50 may invest an additional $5,500.

Mileage Rates

Business = .55.5 cents per mile Medical or qualified move = .23 cents/mile Charitable purposes = .14 cents per mile.

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scot January 26, 2013 at 02:08 PM
SteveO, Crawl back under your rock. It`s 1:53 am, do your parents know where you are?
C. Sanders January 26, 2013 at 02:29 PM
The financial ruin that Obamacare is sweeping into our Nation has already started to arrive and the IRS is the enforcement branch for the Whitehouse. The middle class will get squeezed from all sides with price increases driven Obama Obamacare-related taxes, and before they lose consciousness, they will wish they could get the vote back they gave to Obama.
Nuitari (Grand Master Editor) January 26, 2013 at 08:05 PM
Just wait until an explosion of IRS audits rains down the middle class when Obamacare comes looking for its taste.
Hakkimnrobi January 28, 2013 at 05:17 PM
IRS is henchmen for crooked government.
Sharp January 28, 2013 at 07:16 PM
Legislation is proposed and passed prior to hitting the President's desk for a signature. He no more controls the IRS than you and I do. It scares me to think they want to re-write the tax code. I prepare my own taxes. Seeing the changes in summary form helps people who prepare their own tax returns. I needed to call the IRS for a pin number for my son; they answered within 5 minutes and the worker asked if I had any other questions. This is a great improvement. The worker was an American and there was no option to leave a voice mail. The IRS is not perfect, but if you try to follow the above rules that are in summary form; why should anyone be thinking about being audited?


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