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Please turn up volume to hear the Tax Tip.

It is that time again!  Tax Season 2012 is here! 
Electronic Filing starts Friday, January 13, 2012.
Call our office today for your appointment.

Some of the 2011 changes that could effect your refund.

Tax Breaks Extended

They include:
• State and local general sales tax deduction, primarily benefiting people living in areas without state and local income taxes. Claim on Schedule A, Line 5.
• Higher education tuition and fees deduction benefiting parents and students. Claim on Form 8917.
• Educator expense deduction for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250, Claim on Form 1040, Line 23 or Form 1040A Line 16.
• District of Columbia first-time homebuyer credit. Claim on Form 8859.

Exemptions and Itemized Deductions No Longer Phased Out
Overall income limits for personal and dependency exemptions and itemized deductions do not apply. Before 2010, taxpayers whose incomes were above certain levels lost part or all of their exemptions and part of their itemized deductions. For taxpayers at all income levels, limitations continue to apply to particular itemized deductions, such as medical and dental expenses, certain miscellaneous itemized deductions and casualty and theft losses.

Health Insurance Deduction Reduces Self Employment Tax
In 2010, eligible self-employed individuals can use the self-employed health insurance deduction to reduce their social security self-employment tax liability in addition to their income tax liability.


Courtesy of www.irs.gov
FS-2011-01, January 2011