The Individual Investor's Guide to Personal Tax Planning for Tax Year 2010
Much of the new tax bill signed in December 2010 is more of the same. Most of the tax rates and deductions that were in existence in 2010 will continue to be so in 2011 with the passage of the Tax Relief/Job Creation Act of 2010.
Faced with the combination of high unemployment, a slow economic recovery and the threat of higher across-the-board tax increases, Congress opted for the simplest solution—to extend the tax cuts. Though the decision keeps money in consumer’s pockets, and actually increases cash for workers, it comes at a cost. Estimates say the legislation will add $858 billion to the federal deficit, making it the most expensive economic stimulus the U.S. has ever put into place. This is what happens when politicians wait until the last minute to figure out a solution to a long-term problem.
In this article
- Tax Software, Books and Guides
- What’s New?
- Useful Tax Numbers
- Health Savings Accounts
- Investment Strategies: 2011 and Beyond
- Tax Planning Strategies
- Year-End Estate and Gift Tax Planning
Share this article
Facebook
Twitter
E-mail
SeekingAlpha
Stumbleupon
Delicious
LinkedIn
Regardless of what you think about the new tax legislation, you will still have to pay taxes. Nothing in the bill simplifies the process; hence, the need for our annual tax guide. We provide an overview of the tax rates and deductions likely to impact the majority of AAII members. Since there are many details, loopholes and pitfalls within the tax code, it is impossible for this guide to provide enough details to cover specific tax situations. Thus, if you have questions, please consult a tax professional. It is your tax return and the IRS will hold you responsible for any errors made on it.
Tax Software, Books and Guides
Congress’ delay in acting created problems for those who publish tax software, books and related guides. This is because of the logistics required to produce and distribute physical material and the very real deadline for having those products available to the public. Therefore, if you use any software program (e.g., TurboTax), book (e.g., “J.K. Lasser’s Your Income Tax 2011”) or related aid, check for updates. It is highly probable that updates, or a supplement, have been produced since the original product was placed on the market. TurboTax is good about providing updates to download, and J.K. Lasser will have a comprehensive e-supplement on its website. I am sure other providers will do the same.
To read more, please become an AAII member or CLICK HERE.
Discussion
What's the Estate Tax exemption for generation skipping transfers for 2011 and 2012 ?
posted about 1 year ago by David from Texas
The generation-skipping transfer (GST) exemption amount is $5 million for 2011 and 2012, with a GST tax rate of 35%.
posted about 1 year ago by Jean from Illinois
From an IRS news release dated 12/23/10 and Revenue Procedure 2011-12, one learns that (1) the 2011 standard deduction for married couples filing a joint return will be $11,600; (2) the additional standard deduction for the blind and senior citizens will be $1150 for married individuals; (3) for married individuals filing a joint return the tax rate will be 10% for taxable income not over $17,000, then 15% up to $69,000 of taxable income, then 25% to $139,350, then 28% to $212,300, then 33% to $379,150, and 35% on the excess; and (4) the 2011 personal exemption will be $3700.
posted about 1 year ago by Claude from Georgia
Are the maximum income limits still in place for 2011 for a couple to contribute to a Roth IRA? But not for conversions from a standard IRA into a Roth IRA? So is a two-step process required for higher income couples - first contribute to a non-deductible standard IRA; then immediately convert that to a Roth IRA?
posted about 1 year ago by Bruce from Florida
I can't seem to save off the entire article in a single PDF file, as I was able to do last year. It looks like I'll need to save off many separate files, including 2011 Tax Rates, etc.
posted about 1 year ago by John from North Carolina
How about providing a downloadable spread sheet format for the Tax Forecasting Worksheet? Thanks
posted about 1 year ago by Roger from Florida
Where is the link to the downloadable PDF file for the whole article?? I received no response from a message to the webmaster several days ago.
posted about 1 year ago by K from Indiana
For the link to the PDF, look under the second paragraph of the article on the left. There's a heading that says "Print This Article" and the second choice is "Download Printable PDF."
posted about 1 year ago by Jean from Illinois
This tax guidelines are so useful even for someone like me using Turbotax to prepare my income tax. They are written in concise easy to understand language, However, they are most helpful especially in tax planning for the following year. I highly recommend everyone to read this article. Keat
posted 10 months ago by Keat from Illinois
Is there a tax bemifit contributing to grandchildren 529 education plans vice paying federal and or state taxes?
posted 9 months ago by Thomas from Hawaii
short term capital gains are not mentioned. Is short term capital gains the same as long term capital gains?
posted 9 months ago by Harry from California
