IRS Releases 2011 Tax Tables and Other Inflation Adjustments


On Thursday, the IRS released the 2011 tax rate tables and other inflation adjustments, which it had been holding while waiting for Congress to resolve various tax issues (Revenue Procedure 2011-12). With the enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Tax Relief Act of 2010, PL 111-312), which extended the 2001 and 2003 tax rates and various expired and expiring provisions, the IRS had the information it needed to update the tax rate tables and other items.

 

In addition to new tax rate tables, reflecting the continuation of the 10%, 15%, 25%, 28%, 33% and 35% tax brackets, the revenue procedure contains adjusted amounts for the:

 

·         Child tax credit;

·         Hope scholarship, American opportunity, and lifetime learning credits;

·         Earned income credit;

·         Standard deduction;

·         Personal exemption;

·         Qualified transportation fringe benefits; and

·         Phaseout of the deduction for interest on education loans.

 

The inflation-adjusted amounts apply to tax years beginning in 2011.

 

Many other inflation adjustments were released in October (Revenue Procedure 2010-40), including the kiddie tax; the adoption credit; the low-income housing credit; the annual gift tax exclusion ($13,000 for 2011); and 25 other items.

 

More from the JofA:

 

 Find us on Facebook      Follow us on Twitter

 

SPONSORED REPORT

Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.

QUIZ

News quiz: IRS warning on cyberattacks and a change in pension rules

Once again, the IRS sounds the alarm about a threat from cyberthieves. See how much you know about this and other recent news with this short quiz.

CHECKLIST

Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.