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McGraw-Hill FC 2011 Tax Guide
- 1. 2011 Tax Guide What You Need to Know About the New Rules PROOF ONLY Inform. Engage. Empower.
- 2. Tax Guide 2011 PROOF ONLY This guide is not intended to be tax advice and should not be treated as such. Each individual’s tax situation is different. You should contact your tax professional to discuss your personal situation.
- 3. Tax Guide QUICK REFERENCE 2 Introduction PROOF 3 The 2010 Tax Relief Act: A Summary 5 Income Tax Rates 6 Dividends and Capital Gains ONLY 8 Payroll Taxes 9 The Alternative Minimum Tax 10 IRAs and Employer-Sponsored Retirement Plans 13 Education Tax Breaks 14 Estate and Gift Taxes
- 4. INCOME TAX RATES As a result of the legislation, existing rates on ordinary income, ranging from 10% to a high of 35%, will remain in effect through 2012. Each tax rate indicated below applies to a tier of your income, with the lowest portion taxed at 10%, the next threshold taxed at 15% and so on. Your filing status — single taxpayer, head of household, or married couple filing jointly or separately — determines the income ranges that define your tax rates. Rates on Ordinary Income for the 2011 Tax Year* Single or Married Filing Separately PROOF $0 – $8,500 $0 + 10% $8,500 – $34,500 $850 + 15% over $8,500 $34,500 – $83,600 $4,750 + 25% over $34,500 $83,600 – $174,400 $17,025 + 28% over $83,600 $174,400 – $379,150 $42,449 + 33% over $174,400 ONLY $379,150 and over $110,016 + 35% over $379,150 Married Filing Jointly or Qualifying Widow(er) $0 – $17,000 $0 + 10% $17,000 – $69,000 $1,700 + 15% over $17,000 $69,000 – $139,350 $9,500 + 25% over $69,000 $139,350 – $212,300 $27,087 + 28% over $139,350 $212,300 – $379,150 $47,513 + 33% over $212,300 $379,150 and over $102,574 + 35% over $379,150 Head of Household $0 – $12,150 $0 + 10% $12,150 – $46,200 $1,215 + 15% over $12,150 $46,200 – $119,400 $6,322 + 25% over $46,200 $119,400 – $193,350 $24,622 + 28% over $119,400 $193,350 – $379,150 $45,328 + 33% over $193,350 $379,150 and over $106,642 + 35% over $379,150 *Source: IRS. Bracket ranges are preliminary and subject to change. 5
- 5. Work With a Professional It’s important to remember that many of the provisions of the 2010 Tax Relief Act expire at the end of 2011 or 2012, unless Congress elects to extend them. Moreover, estate and gift tax rules are complex and warrant careful planning. Be sure to discuss your personal situation with your tax professional. PROOF ONLY 17
- 6. PROOF ONLY © 2011 McGraw-Hill Financial Communications. All rights reserved. Reproduction in whole or in part is prohibited without the express permission of McGraw-Hill Financial Communications. Annual Managing Investing in Exchange- 529 Financial Money in Municipal Traded College Planning Retirement Bonds Funds Savings Plan