Rundown of 2012 Tax Law changes

* PAYROLL TAX CUT for employees extended through February
 29, 2012. (Social security tax rate on wages up to
 $110,100 will be 4.2% rather than 6.2%.)
* ADOPTION TAX CREDIT decreases to $12,650 for adoption
 of an eligible child.

* SECTION 179 maximum deduction decreases to $139,000,
 with a phase-out threshold of $560,000.

* STANDARD MILEAGE RATE for business driving remains at
 55.5¢ a mile. Rate for medical and moving mileage
 decreases to 23¢ a mile. Rate for charitable driving
 remains at 14¢ a mile.

* ESTATE TAX top rate remains at 35%, and the exemption
 amount increases to $5,120,000. The ANNUAL GIFT TAX
 EXCLUSION remains at $13,000.

* 401(k) maximum salary deferral increases to $17,000
 ($22,500 for 50 and older).

* SIMPLE maximum salary deferral remains at $11,500
 ($14,000 for 50 and older).

* IRA contribution limit remains at $5,000 ($6,000 for
 50 and older).

* KIDDIE TAX threshold remains at $1,900 and applies up
 to age 19 (up to age 24 for full-time students).

* NANNY TAX threshold increases to $1,800.

* TRANSPORTATION FRINGE BENEFIT limit decreases to $125
 for vehicle/transit passes and increases to $240 for
 qualified parking.

* SOCIAL SECURITY taxable wage limit increases to
 $110,100. Retirees under full retirement age can earn
 up to $14,640 without losing benefits.

* HSA CONTRIBUTION limit increases to $3,100 for
 individuals and to $6,250 for families. An additional
 $1,000 may be contributed by those 55 or older.
David Bradsher, CPA