INCOME CHANGES FOR 2012

      The IRS has announced many new changes for the upcoming tax season. A lot of changes have been made due to inflation and will have an impact on every taxpayer.
Changes Include:

1. Personal and dependent exemptions will increase from $100 to 3,800.

2. Standard deductions have increased in all categories including a $300 increase for married couples filing jointly.

3. There will be an increase in Tax-Bracket thresholds.

4. The maximum earned income tax credit will increase to 5,891 from 5,751.

5. An increase in the income phase out level for married couples that pay student loan interest.

    The IRS will also increase the contribution limit for certain retirement accounts. In 2012, the new limit applies to 401(K)s, 403(b)s, the government's Thrift Savings Plan and some 457 plans. There will also be changes to Roth IRAs and pension plans, such as increasing the amount contributed.

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