If a payers has a sufferer loss from a federally-declared disaster, this deduction can be added to the base Standard Deduction 2011. In previous years a taxpayer also was permissible to add a limited amount of real estate taxes and sales tax paid on a new automobile, but these add-ons no longer apply.For purposes of the Alternative Minimum Tax, however, the base 2011 Standard Deduction is not permitted. If the taxpayer is qualified to take a Regular Tax deduction for a casualty loss in addition to the Standard Deduction, this also is allowed for the AMT. The Form 6251 shows the AMT payer how to do this. Note also that if the Standard Deduction is selected for Regular Tax purposes, it must also be used when calculating the AMT - it is a binding tax election.The option between itemizing and taking the Standard Deduction seems simple: if the total of a taxpayer's itemized deductions is less than the Standard Deduction, then the Std Deduction will result in less being paid. But this is not always the case when the Alternative Minimum Tax is involved. For AMT payers, there are certain situations where itemizing for normal Tax purpose actually could lower the amount of AMT paid.To demonstrate, assume a taxpayer lives in Florida (no state income tax), rents instead of owns a home (no real estate taxes or mortgage interest), and didn't make any taxable purchases this year (no sales tax deduction). But suppose this taxpayer also gave $10,000 to charity. The Std Deduction for 2011 for joint return filers is $11,600, so this would appear to be the improved option.However, if the taxpayer were in the Alternative Minimum Tax there would be no benefit at all from the standard deduction 2011, but there would be a benefit of up to $2,800 (the 28% Alternative Minimum Tax bracket times the $10,000 charitable contribution deduction) if itemizing is elected instead. Even the lower 26% tax rate would result in nearly the same advantage. So, somewhat counter-intuitively, in this example opting to pay more usual Tax will result in a lower overall tax liability.Here we also offer Personal tax extension 2012
13 Mayıs 2012 Pazar
2011 Standard Deduction Online
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A taxpayer has a option of itemizing deductions 2011 or taking the 2011 Standard Deduction in computing his Regular Tax liability. The 2011 Standard Deduction is a fixed dollar amount that varies depends on your filing status. In tax year 2011 it is $5,800 for Single and $11,600 for Married Filing Jointly.
If a payers has a sufferer loss from a federally-declared disaster, this deduction can be added to the base Standard Deduction 2011. In previous years a taxpayer also was permissible to add a limited amount of real estate taxes and sales tax paid on a new automobile, but these add-ons no longer apply.For purposes of the Alternative Minimum Tax, however, the base 2011 Standard Deduction is not permitted. If the taxpayer is qualified to take a Regular Tax deduction for a casualty loss in addition to the Standard Deduction, this also is allowed for the AMT. The Form 6251 shows the AMT payer how to do this. Note also that if the Standard Deduction is selected for Regular Tax purposes, it must also be used when calculating the AMT - it is a binding tax election.The option between itemizing and taking the Standard Deduction seems simple: if the total of a taxpayer's itemized deductions is less than the Standard Deduction, then the Std Deduction will result in less being paid. But this is not always the case when the Alternative Minimum Tax is involved. For AMT payers, there are certain situations where itemizing for normal Tax purpose actually could lower the amount of AMT paid.To demonstrate, assume a taxpayer lives in Florida (no state income tax), rents instead of owns a home (no real estate taxes or mortgage interest), and didn't make any taxable purchases this year (no sales tax deduction). But suppose this taxpayer also gave $10,000 to charity. The Std Deduction for 2011 for joint return filers is $11,600, so this would appear to be the improved option.However, if the taxpayer were in the Alternative Minimum Tax there would be no benefit at all from the standard deduction 2011, but there would be a benefit of up to $2,800 (the 28% Alternative Minimum Tax bracket times the $10,000 charitable contribution deduction) if itemizing is elected instead. Even the lower 26% tax rate would result in nearly the same advantage. So, somewhat counter-intuitively, in this example opting to pay more usual Tax will result in a lower overall tax liability.Here we also offer Personal tax extension 2012
If a payers has a sufferer loss from a federally-declared disaster, this deduction can be added to the base Standard Deduction 2011. In previous years a taxpayer also was permissible to add a limited amount of real estate taxes and sales tax paid on a new automobile, but these add-ons no longer apply.For purposes of the Alternative Minimum Tax, however, the base 2011 Standard Deduction is not permitted. If the taxpayer is qualified to take a Regular Tax deduction for a casualty loss in addition to the Standard Deduction, this also is allowed for the AMT. The Form 6251 shows the AMT payer how to do this. Note also that if the Standard Deduction is selected for Regular Tax purposes, it must also be used when calculating the AMT - it is a binding tax election.The option between itemizing and taking the Standard Deduction seems simple: if the total of a taxpayer's itemized deductions is less than the Standard Deduction, then the Std Deduction will result in less being paid. But this is not always the case when the Alternative Minimum Tax is involved. For AMT payers, there are certain situations where itemizing for normal Tax purpose actually could lower the amount of AMT paid.To demonstrate, assume a taxpayer lives in Florida (no state income tax), rents instead of owns a home (no real estate taxes or mortgage interest), and didn't make any taxable purchases this year (no sales tax deduction). But suppose this taxpayer also gave $10,000 to charity. The Std Deduction for 2011 for joint return filers is $11,600, so this would appear to be the improved option.However, if the taxpayer were in the Alternative Minimum Tax there would be no benefit at all from the standard deduction 2011, but there would be a benefit of up to $2,800 (the 28% Alternative Minimum Tax bracket times the $10,000 charitable contribution deduction) if itemizing is elected instead. Even the lower 26% tax rate would result in nearly the same advantage. So, somewhat counter-intuitively, in this example opting to pay more usual Tax will result in a lower overall tax liability.Here we also offer Personal tax extension 2012
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