Expiring Tax Provisions Will Increase Your Tax Bill

At the end of 2012 over 20 individual tax provisions will expire. The result will be an increase in your federal (and in most cases State) income taxes.

Do any of these expiring tax provisions affect you?

  • Income tax rates of 10%, 25%, 28%, 33% and 35%
  • 15% top rate on long-term capital gains
  • Dividends taxed at capital gain rates
  • Repeal of the overall limitation on itemized deductions
  • Repeal of personal exemption phase-outs
  • Estate, gift and generation skipping transfer tax provisions
  • Increased 15% rate bracket for married filers to double that of unmarried filers
  • Increased standard deduction for married filers to double that of unmarried filers
  • Increased child care credit
  • Increased dependent care credit
  • Credit for employer-provided child care
  • Increased adoption credit
  • Credit for prior year minimum tax liability made refundable after period of years
  • Exclusion from gross income for discharge of indebtedness on principal residence
  • Expansion of employer-provided education assistance to graduate education
  • Increase in student loan interest deduction, indexed for inflation
  • Increase in annual contribution limit for Coverdell education savings accounts
  • Tax-free treatment of certain scholarship awards
  • Certain earned income tax provisions
  • American opportunity tax credit

Don’t be caught by surprise. Flexible Accounting Services of the Triangle provides a free tax consultation and review that will highlight the changes that will affect you. Start your tax planning now!