The following table provides some
important federal tax information for 2011, compared with 2010. Many of
the dollar amounts are unchanged or have changed only slightly due to
low inflation. Other amounts are changing due to legislation.
| Social Security/ Medicare |
2011 |
2010 |
| Social Security Tax Wage Base |
$106,800.00 |
$106,800.00 |
| Medicare Tax Wage Base |
No limit |
No limit |
| Employee portion of Social Security |
4.2 percent |
6.2 percent |
| Individual Retirement Accounts |
2011 |
2010 |
| Roth IRA individual, up to 100% of earned income |
$5,000.00 |
$5,000.00 |
| Traditional IRA individual, up to 100% of earned income |
$5,000.00 |
$5,000.00 |
| Roth and Traditional IRA additional annual "catch-up" contributions for account owners age 50 and older |
$1,000.00 |
$1,000.00 |
| Qualified Plan Limits |
2011 |
2010 |
| Defined Contribution Plan Dollar limit on additions on sections 415 (c)(1)(A) |
$49,000.00 |
$49,000.00 |
| Defined Benefit Plan limit on benefits (Section 415(b)(1)(A)) |
$195,000.00 |
$195,000.00 |
| Maximum compensation used to determine contributions |
$245,000.00 |
$245,000.00 |
| 401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2)) |
$16,500.00 |
$16,500.00 |
| 401(k), 403(b), 457 & SARSEP additional "catch-up" contributions for employees age 50 and older |
$5,500.00 |
$5,500.00 |
| SIMPLE deferrals (Section 408 (p)(2)(A)) |
$11,500.00 |
$11,500.00 |
| SIMPLE additional "catch-up" contributions for employees age 50 and older |
$2,500.00 |
$2,500.00 |
| Compensation defining highly compensated employee (Section 414(q)(1)(B)) |
$110,000.00 |
$110,000.00 |
| Compensation defining key employee (officer) |
$160,000.00 |
$160,000.00 |
| Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2) (c) |
$550.00 |
$550.00 |
| Driving Deductions |
2011 |
2010 |
| Business mileage, per mile |
51 cents |
50 cents |
| Charitable mileage, per mile |
14 cents |
14 cents |
| Medical and moving, per mile |
19 cents |
16.5 cents |
| Business Equipment |
2011 |
2010 |
| Maximum Section 179 deduction |
$500,000.00 |
$500,000.00 |
| Phaseout for Section 179 |
$2 million |
$2 million |
| Transportation Fringe Benefit Exclusion |
2011 |
2010 |
| Monthly commuter highway vehicle and transit pass |
$230.00 |
$230.00 |
| Monthly qualified parking |
$230.00 |
$230.00 |
| Domestic Production Activities Deduction |
2011 |
2010 |
| Percent of qualifying business net income |
9 percent (6% for oil and gas companies) |
9 percent (6% for oil and gas companies) |
| Standard Deduction |
2011 |
2010 |
| Married filing jointly |
$11,600.00 |
$11,400.00 |
| Single (and married filing separately) |
$5,800.00 |
$5,700.00 |
| Heads of Household |
$8,500.00 |
$8,350.00 |
| Personal Exemption |
2011 |
2010 |
| Amount |
$3,700.00 |
$3,650.00 |
| Domestic Employees |
2011 |
2010 |
| Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc. |
$1,700.00 |
$1,700.00 |
| Kiddie Tax |
2011 |
2010 |
| Net unearned income not subject to the "Kiddie Tax" |
$1,900.00 |
$1,900.00 |
| Estate Tax |
2011 |
2010 |
| Federal estate tax exemption |
$5 million |
Repealed* (estates have the option of using the $5 million exemption for 2011) |
| Maximum estate tax rate |
35 percent |
0 percent * (Estates have the option of using the 35 percent tax rate for 2011) |
| Annual Gift Exclusion |
2011 |
2010 |
| Amount you can give each recipient |
$13,000.00 |
$13,000.00 |
| Alternative Minimum Tax Exemption Amounts |
2011 |
2010 |
| Married filing jointly |
$74,450.00 |
$72,450.00 |
| Single filers |
$48,450.00 |
$47,450.00 |
| Married filing separately |
$37,225.00 |
$36,225.00 |
| IRS Interest Rates |
2011 (1st Quarter) |
2010 (4th Quarter) |
| Tax overpayments |
3 percent (2 percent for corporations; 0.5 percent for the part of corporate overpayments exceeding $10,000) |
4 percent (3 percent for corporations; 1.5 percent for the part of corporate overpayments exceeding $10,000) |
| Tax underpayments |
3 percent (5 percent for large corporations underpayments) |
4 percent (6 percent for large corporations underpayments) |
**
Under a 2001 law, the estate tax exemption was gradually increased and
the tax rate levied on estates decreased. For one year only in 2010, the
estate tax was repealed.
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