https://www.bay-biz.com/wp-content/uploads/2013/04/Bay-Business-Group4.png 0 0 baybiz https://www.bay-biz.com/wp-content/uploads/2013/04/Bay-Business-Group4.png baybiz2012-01-05 11:03:432012-01-05 11:03:43Rundown of 2012 Tax Law changes
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.