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

How to make the most of a negotiation

Negotiators are made, not born. In this sponsored report, we cover strategies and tactics to help you head into 2017 ready to take on business deals, salary discussions and more.

VIDEO

Will the Affordable Care Act be repealed?

The results of the 2016 presidential election are likely to have a big impact on federal tax policy in the coming years. Eddie Adkins, CPA, a partner in the Washington National Tax Office at Grant Thornton, discusses what parts of the ACA might survive the repeal of most of the law.

QUIZ

News quiz: Scam email plagues tax professionals—again

Even as the IRS reported on success in reducing tax return identity theft in the 2016 season, the Service also warned tax professionals about yet another email phishing scam. See how much you know about recent news with this short quiz.