If you haven’t filed your income taxes for 2010, what are you waiting for?
Get on over, I’m sure you’ve seen the wavers as your drive by, we are here to help!
If you have filed for 2010, we thank you your support. Now it is time to plan for 2011 and with a new Congress in place it is important for you to understand the tax changes and how they may affect you.
Thankfully, the income tax rates for 2011 remain the same, but the brackets are higher due to inflation.
If you have been able to successfully stock way extra cash into investments then you will find that we are still in a favorable tax environment. You will pay 0 percent on dividends and capital gains if your tax bracket is 15 percent or lower. Young people who aren’t earning a ton, but have the opportunity to invest should! If you fall into the 25 percent tax bracket then the rate is 15%.
If you are investing, it is now your brokers responsibility to track cost basis. Brokers are now required to track clients’ purchases of stock and report the cost to the IRS when the stock is sold.
For Estate and Gift Taxes, in 2011 and 2012 there is a big change. There is an exemption on the first $5 million before tax would be owed and a maximum rate of 35 percent. The exemption applies to estate, gift and generation-skipping taxes. Listen up Grandma and Grandpa--it is time to MOVE THAT MONEY!
If you didn’t utilize your energy tax credits in 2010, don’t worry, you still have the opportunity to make energy-efficient improvements.
However, the credit has shrunk to a maximum of $500 per taxpayer per lifetime. If you took the credit in 2010 you will not qualify in 2011.
With new leadership in the federal government, who knows what changes are on the horizon. One thing is for sure, Liberty Tax is here to help!
Please call your local office to schedule some time.