2012 Tax Changes

I was recently asked what changes are looming for this year’s taxes. Seems like a simple enough question, right?  But the question wasn’t about 2013; they were asking me about tax year 2012 and any changes they should be aware of compared to tax year 2011. Technically, they were asking about last year’s changes that are now a concern given the looming tax day, April 15, 2013.  Here are just a couple:

Personal Exemptions

For tax year 2012, your line 42 exemption (if you file a Form 1040) has increased since tax year 2011. Most taxpayers will receive a $100.00 increase from $3,700 in tax year 2011 to 3,800 in tax year 2012 for their personal exemption amount for each qualifying person.

Standard Deductions

Taxpayers who take the standard deduction, instead of itemizing their deductions, will benefit from tax year 2012 increases from the 2011 standard deduction amounts. The 2012 standard deduction amount is $11,900 for married couples filing a joint return, up $300 from the standard deduction allowed in tax year 2011. The standard deduction for taxpayers filing single or married filing separately is $5,950, up $150 from tax year 2011. The standard deduction for taxpayers filing as head of household for tax year 2012 is $8,700, up $200 from tax year 2011.

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