Ask a CPA

The Maximum amount of aged based long term care premiums that can be included as deductible medical expenses (subject to the 10 / 7.5 AGI floor) is:
$360 for 40 year olds or younger
$680 for ages 41 through 50
$1,360 for ages 51 through 60
$3,640 for ages 61 through 70
$4,550 for ages over age 70

The phase-out range for taxpayers who are members of a qualified plan are:
Married Joint/Surviving Spouse - $92,000 - $112,000
Single /Head of Household - $58,000 - $68,000
Non-Participating Soouse - $173,000 - $183,000

Taxpayers who transferred their traditional IRAs into Roth IRAs in 2010, and deferred the income must pick up the remaining 50% of the deferred income in 2012.
Taxpayers with modified AGI in excess of $100,000 and taxpayers who are married filing separately are no longer barred from converting traditional IRAs into Roth IRAs.

The First-Time Homebuyer's Credit no longer exists. The First-Time Homebuyer's Credit for homes acquired after 4/8/08 and before 1/1/09 have to be recaptured over a 15 year period.
The 15 year period began in 2010.
Any taxpayer who used the First-Time Homebuyer's Credit in 2010 or 2011 and sold the house in 2012 must recapture the entire credit in 2012.

The Section 179 deduction cannot be used to create or add to a loss.
Income from all trades or businesses in which the taxpayer is engaged is counted in determining the income limitation,
Wages received by taxpayer AND wife from activities unrelated to those created the 179 deduction are treated as income in determining the income limitation.
The maximum deduction allowed in 2012 is the lesser of $500,000 or the Section 179 Income.

The Tax Relief Act of 2010 extended the current tax rate structure through the end of 2012.
For 2012, there will be six tax rate brackets for ordinary income of: 10%, 15%, 25%, 28%, 33%, and 35%.
All taxpayers will pay 35% of any taxable income over $388,350 except MFS pays 35% over $194,175.

For 2011 returns, if your dependent child (claimed as a dependent on your tax return) has no investment income, the child does not have to file a return if earned income does not exceed $5,800. If you child has more than $950 of investment income, even if it has no other earned income, your child must file a tax return. If the child's earned income is only from interest and dividends, and your child has no earned income, you can elect to report this investment income on your tax return

IRA Contributions $5,500 - IRA Catch-up Contributions $1,000 - Defined Benefit Plan Benefit $205,000 - Defined Contribution Plan Allocation $51,000 - 401(K) or 403(b) Salary reduction deferrals $17,500 - 401(k) or 403(b) Catch-up Contributions $5,500 - SIMPLE plans $12,000 - SIMPLE plan Catch-up Contributions $2,500 - Salary for pension plan $255,000 - Salary for highly compensated employee $115,000 - Salary for Key employee $165,000 - Salary for SEP eligibility $550 - Social Security Taxable Wage base $113,700 -

The limit on employee elective deferrals is $17,500 for 2013. $17,000 for 2012 and $23,000 if age 50 or older ($22,500 in 2012)
The catch up contribution limit for employees 50 and over remains unchanged at $5,500.
Generally, all elective deferrals made to all plans in which you participate are aggregated to determine if you have exceeded these limits.

The health care legislation enacted in 2013 included a new tax that was designed to affect upper income taxpayers.
The 3.8 percent tax is imposed ONLY on those with more than $200,000 of adjusted gross income (AGI) ($250,000 on a joint return).
The tax applies to investment income, defined as interest, dividends, capital gains and net rents. These items are all included in an individual’s AGI.
The new tax does NOT eliminate the benefits of the $250,000/$500,000 exclusion on the sale of a principal residence. Thus, ONLY that portion of a gain above those thresholds is included in AGI and could be subject to the tax.