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2011 Tax Filing: What To Look For This Year

The 2011 tax season is set to begin! The RapidTax team comes together to wish you an excellent 2012 and a worry-free season. We welcome you and look forward to making your online tax filing this year as effortless as possible.
File your tax return now, and get a smooth start to the tax season!

We want you to be confident that RapidTax will net you the maximum refund you are eligible for in the shortest time. To this effect, our software has been updated to reflect the very latest IRS changes for 2011.

These include but are not limited to:

  • Changes in the way capital gains and losses as well as foreign financial assets are reported.
  • Changes to how the self-employed health insurance deduction is claimed, and
  • Increases in the exemption amounts for the Alternative Minimum Tax (AMT).

2011 thankfully saw few major changes to the tax code, unlike the years that preceded it. Here are those you should make a note of as you get set to file your 2011 taxes:

  • First, the traditional April 15th deadline is once again moved forward. Because the 15th falls on a Sunday in 2012, and April 16th is the District of Columbia’s Emancipation Day holiday, the last day to file your 2011 taxes this year is April 17th. So everyone gets an extra two days to file.
  • Exemption levels for the Alternative Minimum Tax (AMT) are increased, rising to $48,450 for single filers, $74,450 for married couples filing jointly, and $37,225 for married individuals filing separately. For 2011 only those with incomes above these thresholds need worry about the AMT.
  • The First-time Homebuyer credit will only be available to members of the uniformed services, Foreign Service, or intelligence community who were on a qualified official extended duty for at least 90 days outside the U.S. between December 31, 2008 and May 1, 2010.
  • If you converted or rolled over an amount to a Roth IRA in 2010 and did not report the total taxable amount on your 2010 return, you must report half of it on your 2011 return and the other half on your 2012 return. The same applies to amounts rolled over from a 401(k) or 403(b) plan to a designated Roth account.
  • For Health Savings Accounts (HSAs) and Archer MSAs, the additional tax on distributions not used for qualified medical expenses is increased to 20% for distributions made after 2010.
  • The Making Work Pay credit, as well as most provisions of the Alternative Motor Vehicle credit are eliminated for 2011.
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2012 Income Tax Deadlines

Mind these tax deadlines as the new year begins

2012 will soon be here. Before you ring in the new year, take a look at the IRS tax calendar to remind yourself of the upcoming tax deadlines.

January 10, 2012 – Those who earned more than $20 in tips during December must report tips to their employers with Form 4070: Employee’s Report of Tips to Employer.

January 17, 2012 – E-filing begins for 2011 returns.

Also, if you did not pay 2011 income tax through withholding you must pay your final installment of 2011 estimated tax with Form 1040-ES: Estimated Tax for Individuals. If you plan on filing your return and paying the tax due by January 31, you can disregard this deadline.

January 31, 2012 – Individuals who must make estimated tax payments can opt to file their return and pay any tax due by this date, thus preventing penalties for missing the January 17 deadline. Continue reading “2012 Income Tax Deadlines”

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The 2011 Earned Income Tax Credit: What is it?

Before you file 2011 taxes, make sure you’re familiar with all the credits that could save you money.

Basically, the Earned Income Credit is a tax credit designed to put money in the pockets of moderate to low income individuals. It can reduce the amount of tax you owe and even give you a refund.

One of the ways you could potentially save money on your taxes is through the Earned Income Credit (EIC).

You may be eligible to take the 2011 Earned Income Credit if

  • You earn less than $43,998 ($49,078 if married) and have 3 or more children
  • You earn less than $40,964 ($46,044 if married) and have 2 children
  • You earn less than $36,052 ($41,132 if married) and have 1 child
  • You earn less than $13,660 ($18,740 if married) and have no children Continue reading “The 2011 Earned Income Tax Credit: What is it?”