New Tax Breaks for 2011, 2012
73New Tax Breaks
Most taxpayers will be looking at all the possible savings and new tax breaks they are eligible for in the coming tax season. There are some new ones as well as some that have been around for awhile that are often overlooked.
Here is a list of new tax breaks you can claim this year on your tax return.
Starting in 2011
Lower Tax Rates Extended
The 2010 Tax Relief Act extends through the end of 2012 the tax rates in effect in 2010. They had been scheduled to increase to the higher tax rates that were in effect prior to 2001.
Estate Tax
For individuals dying after 2010, the federal estate tax continues with a $5 million exemption and a 35 percent maximum rate. The current federal estate tax rules are scheduled to end after 2012.
Lower Capital Gains and Dividend Tax Rates Extended Through 2012
The tax rate reductions for long-term capital gains remain in effect for 2011 and 2012.
Child Tax Credit
The child tax credit of $1,000 per eligible child continues through 2012. The credit was extended by two years by the 2010 Tax Relief Act.
Payroll Tax Credit
Starting in 2011, the partial credit for payroll taxes paid by employers is no longer available.
Section 179 Expense Deduction
The $500,000 maximum amount of equipment placed in service that businesses can expense and the annual investment limit of $2,000,000 remain in effect for 2011.
Tax Credit for College Tuition
The American Opportunity Tax Credit remains in effect through 2012.
Earned Income Tax Credit (EITC)
Temporary increases in the earned income tax credit for filers with three or more children and the higher income levels for the phaseout of the credit have been extended through the end of 2012.
Mortgage Insurance Premiums
The special itemized deduction for mortgage insurance premiums paid on mortgages taken out after 2006 expires on Dec. 31, 2010.
Credit for Energy-Saving Home Improvements
The 30 percent tax credit of the cost of energy-saving home improvements was extended by the Tax Relief Act of 2010 through 2011.
Deduct The Sales Tax Paid On A New Car
If you bought a new vehicle between February 17 and December 31, 2009, you can deduct the sales tax you paid on the new vehicle. This tax credit does not depend on itemizing, you can claim this new tax break even if you take the standard deduction.
Making Work Pay Tax Credit
The Making Work Pay tax credit is almost done. You have one year left for this tax break to be available. This is the tax credit workers have been noticing in their paychecks. The withholding was reduced so we could have more money in our checks and in our pockets to stimulate the economy. If Congress does not renew the Make Work Pay tax break, then it will expire on December 31, 2010.
Charity Work Expenses Are Tax Deductible
With some of the disasters we have had lately, the first thing that I think of is charity work. If you had any out-of-pocket expenses while doing charity work, then you have a tax deduction. If you happened to get a new job, the moving expenses are tax deductible. Well, the list goes on and on. Online tax preparation software will look for over 350 tax deductions for you and I'm sure they will find some you didn't even know about.
Just remember tax laws change every year and because a tax break was available last year, does not mean it will still be available this year.
IRA To Roth IRA
It doesn't matter what your income level is, you can change a traditional IRA, 401(k) to a Roth IRA. This conversion wasn't always allowed, so it's time to take advantage of it. The Roth IRA is a tax free retirement plan.
This may not be the best plan for every person, so be sure to read the rules before you make the decision. You can find a ton of information from the tax experts about the new tax breaks by visiting the web site of TurboTax Online. Click the support tab on the upper, right corner and enter the words, new tax breaks, into the search box. You will be pleasantly surprised with the information you will find about the tax breaks that are new for 2011.
To claim all of the new tax breaks please visit TurboTax Online. TurboTax Online has everything you need to get the biggest refund possible.
New Tax Breaks Video
vote upvote downshareprintflag
- Useful (28)
- Funny (10)
- Awesome (5)
- Beautiful (4)
- Interesting (3)
Leave a Comment - Join the Conversation!Loading...
I'm 23 years old and whould like to know what tax credits I can use. I have no kids, I'm a part time student.
My rep. (forgot his name) was outstanding. He helped me beyond good, he was exdellent. You should treat him well he is a true treasue to your company.
unemployment taxes are a total of 15% out of the gross amount that you received, 10% federal and 5% state
Will we get the making work pay tax credit for 2011
we purchased an acre of land in feb. of 2011 is there any way we can claim it on our taxes for anykind of break we paid cash for it
im buying a home this week are there any new tax breaks first time buyer
just bought a new 2012 camaro how much can i right off
@Barry, Yes you can claim the purchase of a time machine on your 2011 taxes.
I am trying to find all the tax credits or deductions that I can. We raise cattle and we have no other deductions such as children or any of that other than mortagage interest.
i bought a new car in march 2010 can i claim taxes i go lonf form?
does purchasing a home on landcontract counts as new home purchase for tax breaks
I bought a new car in June 2010. Can i claim this on my taxes and will it affect how much I get back? Just asking because I haven't found a new car tax credit or anything for filing in 2011. Thanks.
I bought a new car in June 2010. Can i claim this on my taxes and will it affect how much I get back? Just asking because I haven't found a new car tax credit or anything for filing in 2011. Thanks.
We just bought a house in November 2010, First Time Home Buyer. I would do anything to have them look at the H.R. 2801 bill again but apparently its been ignored. Now I owe $1,000s of taxes as opposed to getting a refund. Are there ANY other tax credits for buying a home or are we out of luck? Closing costs? Anything? Really, nothing?
-From Working 3 jobs just to pay for taxes.
Dear Barry,
We have not gotten to July 2011 yet. So, if you bought your car in 2010, yes you can claim it on taxes for 2010.
Can I receive a tax credit for a new car I bought in July 2011....Sorry
Can I receive a tax credit for a new car I bought in July 2020?
My husband ahas been working on a job fo rabout 9 months now and he has filed the tax paper a few times but they are still not taking any federal taxes out they are state tax but not federal! WHY?????
Well, I was a tax preparer for a few years, unless you are itemizing your deductions 500 in charitable contributions is not going to make much of a difference if any to your tax return.
I set up a charity show for the make a wish foundation last year and spent about $500 out of pocket for expenses and H & R Block told me that I wouldn't be able to write any of that off.
i had to file unemployment for the first time in 11 years.i have 4 children so my wife and i usually get a pretty good return. how much will the unemployment hurt our return?
We purchased a new home in Utah and closed on the 27 of Aug. 2010. We sold our old home, which we lived in for 20 plus years in Oct. of 2009. We purchased a 5th wheel trailer and lived in it for almost a year.
What tax breaks are out their for me for my 2010 tax year?
Mike, If your tax credit for homebuying was the 1st round of tax credits, then it was a loan, not free money... it will be repaid over several years through your taxes... otherwise you sold your home within the first 3 years of ownership or began to rent it, not maintaining the obligation of the tax credit.
we got 7500 dollar for first time buyer but I have to pay it back.why?
Will there be a tax break in 2009 for those of us who lost their jobs and had to get their 401k out before they turned age 59 1/2?
needabreak 3 months ago
my husband lost his job-we spent 50K from our 401K holding on to our home we have a large equity and cant see it go away.Is there some sort of way to not have to pay the 30% penalty ? he found a job 1,600 miles away and is currently paying rent to live and work there. I am still trying to sell our Charlotte, NC home. We need to get some sort of help here. any advice