• Rates

  • 2011 FEDERAL INCOME TAX BRACKETS AND MARGINAL RATES

    Individual Income Tax Planning 2010 2011
    Adoption Credit    
    *Maximum credit $13,170 $13,360
    Phaseout threshold amount $182,520 $185,210
    Completed phaseout amount after $222,520 $225,210
         
    Alternative Minimum Tax (AMT)    
    *Maximum AMT exemption amount    
    Married filing jointly or surviving spouse $72,450 $74,450
    Single or head of household $47,450 $48,450
    Married filing separately $36,225 $37,225
    *AMT income exemption phaseout threshold    
    Married filing jointly or surviving spouse $150,000 $150,000
    Single or head of household $112,500 $112,500
    Married filing separately $75,000 $75,000
         
    Charitable deductions:    
    *Use of auto for charitable purposes (deductible standard mileage
    rate)
    $0.14 $0.14
         
    Charitable fundraising contributions "insubstantial benefit"
    limitations:
       
    *Low-cost article (re: unrelated business income) $9.60 $9.70
    *Other insubstantial benefits (re: gifts to donor in return for
    contribution). Contribution is fully deductible if minimum contribution amount is met and cost of token gift does not exceed maximum.
       
    Token gift maximum cost $9.60 $9.70
    Minimum contribution amount $48 $48.50
    *Charitable contribution is fully deductible if the benefit received by
    the donor doesn't exceed the lesser of the threshold amount or 2%
    of the amount of the contribution
       
    Threshold amount $96 $97
         
    Child tax credit    
    *Maximum credit per qualifying child $1,000 $1,000
    *Phaseout-- credit reduced by $50 for each $1,000 or fraction
    thereof of MAGI over:
       
    Single $75,000 $75,000
    Married Filing Jointly $110,000 $110,000
    Married Filing Separately $55,000 $55,000
    *Refundability -- up to specified percentage of earned income in
    excess of specified amount
       
    Percentage 15% 15%
    Amount $3,000 $3,000
         
    Classroom expenses of elementary and secondary school
    teachers (maximum above-the-line deduction)
    $250 $250
    Individual Income Tax Planning 2010 2011
    Earned income tax credit (EITC):    
    *Excessive investment income limit ("disqualified income limit") $3,100 $3,150
    *Maximum amount of EITC per number of children    
    0 children $457 $464
    1 child $3,050 $3,094
    2 children $5,036 $5,112
    3 or more children $5,666 $5,751
    *Maximum amount of earned income on which EITC is based
    (earned income over this amount but under the threshold phaseout amount will not change the amount of the credit received)
       
    0 children $5,980 $6,070
    1 child $8,970 $9,100
    2 or more children $12,590 $12,780
    *Threshold phaseout amount for joint filers per number of children    
    0 children $12,490 $12,670
    1 child $21,460 $21,770
    2 children $21,460 $21,770
    3 or more children $21,460 $21,770
    *Threshold phaseout amount for other filers per number of children    
    0 children $7,480 $7,590
    1 child $16,450 $16,690
    2 children $16,450 $16,690
    3 or more children $16,450 $16,690
    *Completed phaseout amount for joint filers per number of children    
    0 children $18,470 $18,740
    1 child $40,545 $41,132
    2 children $45,373 $46,044
    3 or more children $48,362 $49,078
    *Completed phaseout amount for other filers per number of children    
    0 children $13,460 $13,660
    1 child $35,535 $36,052
    2 children $40,363 $40,964
    3 or more children $43,352 $43,998
         
    Expatriation    
    *An individual with "average annual net income tax" of more than this amount for the five taxable years ending before his or her loss
    of citizenship is a covered expatriate for purposes of
    IRC 877A(g)(1)
    $145,000 $147,000
    *IRC 877A(3) exclusion amount $627,000 $636,000
         
    Foreign earned income exclusion: $91,500 $92,900
         
    Itemized Deductions    
    *Itemized deductions threshold phaseout amount for MFS: N/A N/A
    *Itemized deductions threshold phaseout amount for all others: N/A N/A
    Individual Income Tax Planning 2010 2011
    Kiddie tax:    
    *Unearned income limit    
    Amount exempt from tax $950 $950
    Additional amount taxed at child's rate $950 $950
    Unearned income over this amount taxed at parent's rate $1,900 $1,900
    *Election to include child's income on parent's return--child's gross income requirement $950 - $9,500 $950 - $9,500
    *AMT exemption for child subject to kiddie tax: Lesser of $6,700 + child's earned income or $47,450 Lesser of $6,800 + child's earned income or $48,450
         
    Making Work Pay tax credit    
    *Maximum credit    
    Filing status other than married filing jointly $400

    N/A Credit not extended, but related benefit provided by one year 2% reduction in employee Social Security payroll taxes (also applies to self-employment tax of
    self-employed individuals)

    Married filing jointly $800
    *Income phaseout: Other than married filing jointly  
    Phaseout threshold amount $75,000
    Completed phaseout amount after $95,000
    *Income phaseout: Married filing jointly  
    Phaseout threshold amount $150,000
    Completed phaseout amount after $190,000
         
    Nanny tax (domestic employee coverage threshold) $1,700 $1,700
         
    Personal exemption amount: $3,650 $3,700
    *Personal exemption amount for taxpayers with AGI
    exceeding maximum phaseout threshold
    N/A N/A
    *Married filing jointly    
    Phaseout threshold amount N/A N/A
    Completed phaseout amount after N/A N/A
    *Head of household    
    Phaseout threshold amount N/A N/A
    Completed phaseout amount after N/A N/A
    *Single    
    Phaseout threshold amount N/A N/A
    Completed phaseout amount after N/A N/A
    *Married filing separately    
    Phaseout threshold amount N/A N/A
    Completed phaseout amount after N/A N/A
         
    "Saver's Credit" (Elective Deferrals and IRA Contributions
    by Certain Individuals)
       
    *Maximum credit amount $1,000 $1,000
    *Applicable percentage of 50% applies to AGI    
    Joint Return $0 - $33,500 $0 - $34,000
    Head of Household $0 - $25,125 $0 - $25,500
    Other $0 - $16,750 $0 - $17,000
    *Applicable percentage of 20% applies to AGI    
    Joint Return $33,501 - $36,000 $34,001 - $36,500
    Head of Household $25,126 - $27,000 $25,501 - $27,375
    Other $16,751 - $18,000 $17,001 - $18,250
    *Applicable percentage of 10% applies to AGI    
    Joint Return $36,001 - $55,500 $36,501 - $56,500
    Head of Household $27,001 - $41,625 $27,376 - $42,375
    Other $18,001 - $27,750 $18,251 - $28,250
    *Applicable percentage of 0% applies to AGI    
    Joint Return Over $55,500 Over $56,500
    Head of Household Over $41,625 Over $42,375
    Other Over $27,750 Over $28,250
    Individual Income Tax Planning 2010 2011
    Standard deductions:    
    *Married filing jointly or surviving spouse $11,400 $11,600
    *Head of household $8,400 $8,500
    *Single $5,700 $5,800
    *Married filing separately $5,700 $5,800
    *Dependent Greater of $950, or $300 +
    earned income
    Greater of $950, or $300 +
    earned income
    *Additional deduction for aged or blind (single or head of household) $1,400 $1,450
    * Additional deduction for aged or blind (all other filing statuses) $1,100 $1,150
    * Additional standard deduction for state and local real property taxes (maximum additional deduction)    
    Married filing jointly N/A N/A
    All other filing statuses N/A N/A
    Standard mileage rates:    
    *Use of auto for business purposes (cents per mile) $0.50 $0.51 for first half of 2011
    $0.555 for second half
    *Use of auto for medical purposes (cents per mile) $0.165 $0.19 for first half of 2011
    $0.235 for second half
    *Use of auto for moving purposes (cents per mile) $0.165 $0.19 for first half of 2011
    $0.235 for second half
    2011 Federal Income Tax Rate Schedules (Individuals, Trusts, and Estates)
    Unmarried taxpayers  
    If taxable income is Your tax is:
    Not over $8,500 10% of taxable income
    Over $8,500 to $34,500 $850 + 15% of the excess over $8,500
    Over $34,500 to $83,600 $4,750 + 25% of the excess over $34,500
    Over $83,600 to $174,400 $17,025 + 28% of the excess over $83,600
    Over $174,400 to $379,150 $42,449 + 33% of the excess over $174,400
    Over $379,150 $110,016.50 + 35% of the excess over $379,150
       
    Married filing jointly and surviving spouses  
    If taxable income is: Your tax is:
    Not over $17,000 10% of taxable income
    Over $17,000 to $69,000 $1,700 + 15% of the excess over $17,000
    Over $69,000 to $139,350 $9,500 + 25% of the excess over $69,000
    Over $139,350 to $212,300 $27,087.50 + 28% of the excess over $139,350
    Over $212,300 to $379,150 $47,513.50 + 33% of the excess over $212,300
    Over $379,150 $102,574 + 35% of the excess over $379,150
       
    Married individuals filing separately  
    If taxable income is: Your tax is:
    Not over $8,500 10% of taxable income
    Over $8,500 to $34,500 $850 + 15% of the excess over $8,500
    Over $34,500 to $69,675 $4,750 + 25% of the excess over $34,500
    Over $69,675 to $106,150 $13,543.75 + 28% of the excess over $69,675
    Over $106,150 to $189,575 $23,756.75 + 33% of the excess over $106,150
    Over $189,575 $51,287 + 35% of the excess over $189,575
       
    Heads of household  
    If taxable income is: Your tax is:
    Not over $12,150 10% of taxable income
    Over $12,150 to $46,250 $1,215 + 15% of the excess over $12,150
    Over $46,250 to $119,400 $6,330 + 25% of the excess over $46,250
    Over $119,400 to $193,350 $24,617.50 + 28% of the excess over $119,400
    Over $193,350 to $379,150 $45,323.50 + 33% of the excess over $193,350
    Over $379,150 $106,637.50 + 35% of the excess over $379,150
       
    Trusts and estates  
    If taxable income is: Your tax is:
    Not over $2,300 15% of taxable income
    Over $2,300 to $5,450 $345 + 25% of the excess over $2,300
    Over $5,450 to $8,300 $1,132.50 + 28% of the excess over $5,450
    Over $8,300 to $11,350 $1,930.50 + 33% of the excess over $8,300
    Over $11,350 $2,937+ 35% of the excess over $11,350
       
    2010 Federal Income Tax Rate Schedules (Individuals, Trusts, and Estates)
    Unmarried taxpayers  
    If taxable income is: Your tax is:
    Not over $8,375 10% of taxable income
    Over $8,375 to $34,000 $837.50 + 15% of the excess over $8,375
    Over $34,000 to $82,400 $4,681.25 + 25% of the excess over $34,000
    Over $82,400 to $171,850 $16,781.25 + 28% of the excess over $82,400
    Over $171,850 to $373,650 $41,827.25 + 33% of the excess over $171,850
    Over $373,650 $108,421.25 + 35% of the excess over $373,650
       
    Married filing jointly and surviving spouses  
    If taxable income is: Your tax is:
    Not over $16,750 10% of taxable income
    Over $16,750 to $68,000 $1,675 + 15% of the excess over $16,750
    Over $68,000 to $137,300 $9,362.50 + 25% of the excess over $68,000
    Over $137,300 to $209,250 $26,687.50 + 28% of the excess over $137,300
    Over $209,250 to $373,650 $46,833.50 + 33% of the excess over $209,250
    Over $373,650 $101,085.50 + 35% of the excess over $373,650
       
    Married individuals filing separately  
    If taxable income is: Your tax is:
    Not over $8,375 10% of taxable income
    Over $8,375 to $34,000 $837.50 + 15% of the excess over $8,375
    Over $34,000 to $68,650 $4,681.25 + 25% of the excess over $34,000
    Over $68,650 to $104,625 $13,343.75 + 28% of the excess over $68,650
    Over $104,625 to $186,825 $23,416.75 + 33% of the excess over $104,625
    Over $186,825 $50,542.75 + 35% of the excess over $186,825
       
    Heads of household  
    If taxable income is: Your tax is:
    Not over $11,950 10% of taxable income
    Over $11,950 to $45,550 $1,195 + 15% of the excess over $11,950
    Over $45,550 to $117,650 $6,235 + 25% of the excess over $45,550
    Over $45,550 to $117,650 $24,260 + 28% of the excess over $117,650
    Over $117,650 to $190,550 $44,672 + 33% of the excess over $190,550
    Over $190,550 to $373,650 $105,095 + 35% of the excess over $373,650
    Over $373,650  
       
    Trusts and estates  
    If taxable income is: Your tax is:
    Not over $2,300 15% of taxable income
    Over $2,300 to $5,350 $345 + 25% of the excess over $2,300
    Over $5,350 to $8,200 $1,107.50 + 28% of the excess over $5,350
    Over $8,200 to $11,200 $1,905.50 + 33% of the excess over $8,200
    Over $11,200 $2,895.50 + 35% of the excess over $11,200
    Business Planning 2010 2011
    Adoption Assistance Programs    
    *Maximum amount that can be excluded from employee's gross income $13,170 $13,360
    Phaseout threshold amount $182,520 $185,210
    Completed phaseout amount after $222,520 $225,210
         
    Earnings subject to FICA taxes (taxable wage base):    
    *Maximum annual earnings subject to Social Security taxes $106,800 $106,800
    *Social Security and Medicare combined tax rate 15.30% 13.30%1
    OASDI portion (Social Security) 12.40% 10.40%1
    Hospital Insurance portion (Medicare) 2.90% 2.90%
         
    Health insurance deduction for self-employed:    
    *Deduction for health insurance premiums paid by self-employed persons 100% 100%
         
    Qualified transportation fringe benefits:    
    *Commuter vehicles and transit pass monthly exclusion amount $230 $230
    *Qualified parking monthly exclusion amount $230 $230
    *Qualified bicycle commuting reimbursement fringe benefit (monthly amount) $20 $20
         
    Section 179 expensing    
    *Maximum amount that may be deducted under section 179 $500,000 $500,000
    *Deduction reduced by the amount by which the cost of 179 property placed in service
    during the year exceeds this amount
    $2,000,000 $2,000,000
         
    Small business tax credit for providing health-care coverage:    
    *Maximum credit percentage 35% 35%
    *Partial credit    
    Number of full-time equivalent employees (FTEs) fewer than: 25 25
    Maximum average annual wages less than: $50,000 $50,000
    *Full credit    
    Number of full-time equivalent employees (FTEs) no more than: 10 10
    Maximum average annual wages less than or equal to: $25,000 $25,000
         
    Special additional first-year depreciation allowance    
    *"Bonus" depreciation for qualified property acquired and placed in service during
    specified time periods
    50%/100%2 100%
         
    Tax on accumulated earnings and personal holding company income    
    *Maximum tax on these items (usually taxed at the highest marginal personal income tax
    rate).
    15% 15%

    1 The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 included a 2% reduction in the
    Social Security (OASDI) portion of FICA tax for 2011.

    2 100%"bonus" depreciation applies to qualifying property purchased and placed in service after 9/8/10.

    Education Planning 2010 2011
    Coverdell education savings accounts (formerly known as education IRAs):    
    *Annual contribution limit $2,000 $2,000
    *MAGI phaseout range for Coverdell education savings accounts    
    Single--phaseout threshold amount $95,000 $95,000
    Single--completed phaseout amount after $110,000 $110,000
    Married filing jointly--phaseout threshold amount $190,000 $190,000
    Married filing jointly--completed phaseout threshold amount $220,000 $220,000
         
    Deduction for qualified higher education expenses    
    *Maximum deduction $4,000 $4,000
    *MAGI maximum for full $4,000 deduction    
    Single $65,000 $65,000
    Married filing jointly $130,000 $130,000
         
    *Reduced deduction available $2,000 $2,000
    *MAGI range for $2,000 deduction    
    Single--MAGI greater than this amount: $65,000 $65,000
    Single--MAGI does not exceed this amount: $80,000 $80,000
    Married filing jointly--MAGI greater than this amount: $130,000 $130,000
    Married filing jointly--MAGI does not exceed this amount: $160,000 $160,000
         
    Education loans--interest deduction    
    *Maximum deduction for interest paid on qualified education loans $2,500 $2,500
    *MAGI phaseout range    
    Single--phaseout threshold amount $60,000 $60,000
    Single--completed phaseout amount after $75,000 $75,000
    Married filing jointly--phaseout threshold amount $120,000 $120,000
    Married filing jointly--completed phaseout amount after $150,000 $150,000
         
    Gift tax exclusion    
    Annual gift tax exclusion--single individual $13,000 $13,000
    Annual gift tax exclusion--joint gift $26,000 $26,000
    Lump-sum gift to 529 plan--single individual $65,000 $65,000
    Lump-sum gift to 529 plan--joint gift $130,000 $130,000
         
    Kiddie tax    
    Generally, children pay federal income tax at their parents' rate on any investment
    income over
    $1,900 $1,900
         
    U.S. savings bonds--interest exclusion for higher education expenses:    
    *Joint returns    
    Phaseout threshold for joint returns $105,100 $106,650
    Completed phaseout amount after $135,100 $136,650
    *Other returns    
    Phaseout threshold for other returns $70,100 $71,100
    Completed phaseout amount after $85,100 $86,100
    Education Planning 2010 2011
    Hope 1 and Lifetime Learning credits    
    *Maximum Lifetime Learning credit $2,000 $2,000
    *Maximum Hope credit $2,500 $2,500
         
    *MAGI phaseout range for Lifetime Learning credit    
    Single--phaseout threshold amount $50,000 $51,000
    Single--completed phaseout amount after $60,000 $61,000
    Married filing jointly--phaseout threshold amount $100,000 $102,000
    Married filing jointly--completed phaseout amount after $120,000 $122,000
    *MAGI phaseout range for Hope Credit    
    Single--phaseout threshold amount $80,000 $80,000
    Single--completed phaseout amount after $90,000 $90,000
    Married filing jointly--phaseout threshold amount $160,000 $160,000
    Married filing jointly--completed phaseout amount after $180,000 $180,000

    1 For 2010 through 2012, the Hope credit is renamed the American Opportunity tax credit.

    Protection Planning 2010 2011
    Eligible long-term care premium deduction limits:    
    *Age 40 or under $330 $340
    *Age 41-50 $620 $640
    *Age 51-60 $1,230 $1,270
    *Age 61-70 $3,290 $3,390
    *Over age 70 $4,110 $4,240
    Per diem limit: periodic payments for qualified long-term care insurance/
    certain life insurance:
    $290 $300
         
    Archer Medical Savings Accounts    
    *High deductible health plan--self-only coverage    
    Annual deductible--minimum $2,000 $2,050
    Annual deductible--maximum $3,000 $3,050
    Annual out-of-pocket expenses required to be paid (other than for premiums)
    can't exceed
    $4,050 $4,100
    *High deductible health plan--family coverage    
    Annual deductible--minimum $4,050 $4,100
    Annual deductible--maximum $6,050 $6,150
    Annual out-of-pocket expenses required to be paid (other than for premiums)
    can't exceed
    $7,400 $7,500
    Protection Planning 2010 2011
    Health Savings Accounts (HSAs)    
    *Annual contribution limit    
    Self-only coverage $3,050 $3,050
    Family coverage $6,150 $6,150
    *High deductible health plan--self-only coverage    
    Annual deductible--minimum $1,200 $1,200
    Annual out-of-pocket expenses required to be paid (other than for premiums)
    can't exceed
    $5,950 $5,950
    *High deductible health plan--family coverage    
    Annual deductible--minimum $2,400 $2,400
    Annual out-of-pocket expenses required to be paid (other than for premiums)
    can't exceed
    $11,900 $11,900
    *Annual catch up contribution limit for individuals age 55 or older $1,000 $1,000
    Estate Planning 2010 2011
    Annual gift exclusion: $13,000 $13,000
    Estate tax applicable exclusion amount: $5,000,000

    $5,000,000 + DSUEA1

    Gift tax applicable exclusion amount: $1,000,000
    Noncitizen spouse annual gift exclusion: $134,000 $136,000
    Generation-skipping transfer (GST) tax exemption: $5,000,0002 $5,000,0003
    Special use valuation limit (qualified real property in decedent's gross estate): $1,000,000 $1,020,000

    1 $5,000,000 basic exclusion amount plus deceased spousal unused exclusion amount (exclusion is portable for 2011 and 2012)

    2 A 0% GST tax rate applies for 2010

    3 The GST tax exemption is not portable

    2010 through 2012 Gift and Estate Tax Rate Schedule

    Taxable Estate Tentative Tax Equals Plus Of Amount Over
    0 - $10,000 $0 18% $0
    $10,000 - $20,000 $1,800 20% $10,000
    $20,000 - $40,000 $3,800 22% $20,000
    $40,000 - $60,000 $8,200 24% $40,000
    $60,000 - $80,000 $13,000 26% $60,000
    $80,000 - $100,000 $18,200 28% $80,000
    $100,000 - $150,000 $23,800 30% $100,000
    $150,000 - $250,000 $38,800 32% $150,000
    $250,000 - $500,000 $70,800 34% $250,000
    $500,000 + $155,800 35% $500,000
    Credit shelter amount $5,000,000

    Credit amount $1,730,800

    In 2010, the gift tax credit shelter amount is $1,000,000 and the gift tax credit amount is $345,800. In 2012, the $5,000,000 credit shelter amount will be indexed. Under the sunset provision of The Tax Relief, Unemployment Insurance Reauthori- zation, and Job Creation Act of 2010, the gift and estate and GST tax exemptions referenced above will revert to $1 million in 2013, and the maximum tax rate will revert to 55%.

    Government Benefits 2010 2011
         
    Social Security    
         
    Social Security Cost-of-living adjustment (COLA)    
    * For Social Security and Supplemental Security Income (SSI) beneficiaries 0.00% 0.00%
         
    Tax rate    
    * FICA tax -- Employee 1 7.65% 5.65%
    Social Security (OASDI) portion of tax 1 6.20% 4.20%
    Medicare (HI) portion of tax 1.45% 1.45%
    * Self-Employed 15.30% 13.30%
    Social Security (OASDI) portion of tax 1 12.40% 10.40%
    Medicare (HI) portion of tax 2.90% 2.90%
         
    Maximum taxable earnings    
    * Social Security (OASDI only) $106,800 $106,800
    * Medicare (HI only) No limit No limit
         
    Quarter of coverage    
    * Earnings required $1,120 $1,120
         
    Retirement earnings test--exempt amounts    
    * Under full retirement age    
    Benefits reduced by $1 for each $2 earned above:    
    Yearly figure $14,160 $14,160
    Monthly figure $1,180 $1,180
    * Year individual reaches full retirement age    
    Benefits reduced by $1 for each $3 earned above (applies only to earnings for months
    prior to attaining full retirement age):
       
    Yearly figure $37,680 $37,680
    Monthly figure $3,140 $3,140
    * Beginning the month individual attains full retirement age No limit on
    earnings
    No limit on
    earnings
         
    Social Security disability thresholds    
    * Substantial gainful activity (SGA): for the sighted (monthly figure) $1,000 $1,000
    * Substantial gainful activity: for the blind (monthly figure) $1,640 $1,640
    * Trial work period (TWP) (monthly figure) $720 $720
    SSI federal payment standard    
    * Individual (monthly figure) $674 $674
    * Couple (monthly figure) $1,011 $1,011
         
    SSI resource limits    
    * Individual $2,000 $2,000
    * Couple $3,000 $3,000
         
    SSI student exclusion limits    
    * Monthly limit $1,640 $1,640
    * Annual limit $6,600 $6,600
    Government Benefits 2010 2011
    Maximum Social Security benefit    
    * Worker retiring at full retirement age (monthly figure) $2,346 $2,366
         
    Formula for Monthly Primary Insurance Amount (PIA) (90% of first X of AIME + 32% of the
    AIME over X and through Y + 15% of AIME over Y)
    X=$761
    Y=$4,586
    X=$749
    Y=$4,517
         
    Medicare    
         
    Medicare monthly premium amounts    
    * Part A (hospital insurance) premium    
    Individuals with 40 or more quarters of Medicare-covered employment $0 $0
    Individuals with 30 to 39 quarters of Medicare-covered employment who are not
    otherwise eligible for premium-free hospital insurance
    $254 $248
    Individuals with less than 30 quarters of Medicare-covered employment who are not
    otherwise eligible for premium-free hospital insurance
    $461 $450
         
    * Part B (medical insurance) monthly premium    
    For beneficiaries who file an individual income tax return with income that is:    
    2010 and 2011    
    Less than or equal to $85,000 $96.40 or
    $110.50
    $96.40
    $110.50, or
    $115.40 2
    $85,001 - $107,000 $154.70 $161.50
    $107,001 - $160,000 $221.00 $230.70
    $160,001 - $214,000 $287.30 $299.90
    Greater than $214,000 $353.60 $369.10
    For beneficiaries who file a joint income tax return with income that is:    
    2010 and 2011    
    Less than or equal to $170,000 $96.40 or
    $110.50
    $96.40
    $110.50, or
    $115.402
    $170,001 - $214,000 $154.70 $161.50
    $214,001 - $320,000 $221.00 $230.70
    $320,001 - $428,000 $287.30 $299.90
    Greater than $428,000 $353.60 $369.10
    For beneficiaries who are married, but file a separate tax return from their spouse and
    lived with spouse at some time during the taxable year with income that is:
       
    2010 and 2011    
    Less than or equal to $85,000 $96.40 or
    $110.50
    $96.40
    $110.50, or
    $115.40 2
    $85,001 - $129,000 $287.30 $299.90
    Greater than $129,000 $353.60 $369.10

    1 The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 included a 2% reduction in the
    Social Security (OASDI) portion of FICA tax for 2011.

    2 Most beneficiaries will continue to pay the same $96.40 or $110.50 premium in 2011. However, new enrollees or beneficiaries who currently do not have their premium withheld will pay $115.40.

    Government Benefits 2010 2011
         
    Original Medicare plan deductible and coinsurance amounts    
    * Part A (hospital insurance)    
    Deductible per benefit period $1,100 $1,132
    Coinsurance per day for 61st to 90th day of each benefit period $275 $283
    Coinsurance per day for 91st to 150th day for each lifetime reserve day (total of
    60 lifetime reserve days--nonrenewable)
    $550 $566
    * Skilled nursing facility coinsurance per day for 21st to 100th day of each benefit
    period
    $137.50 $141.50
    * Part B (medical insurance) annual deductible    
    Individual pays 20 percent of the Medicare-approved amount for services after
    deductible is met
    $155 $162
    Medicaid    
         
    Monthly income threshold for income-cap states ("300 percent cap limit") $2,022 $2,022
         
    Monthly maintenance needs allowance for at-home spouse    
    *Minimum 3 $1,822 $1,822
    *Maximum $2,739 $2,739
         
    Spousal resource allowance    
    *Minimum $21,912 $21,912
    *Maximum $109,560 $109,560

    3 Amounts listed actually effective as of July of prior year; different amounts apply to Alaska and Hawaii.

    Retirement Planning 2010 2011
         
    Employee/individual contribution limits    
         
    Elective deferral limits    
    * 401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs 1
    (Includes Roth 401(k) and Roth 403(b) contributions)
    Lesser of $16,500 or
    100% of participant's compensation
    Lesser of $16,500 or
    100% of participant's compensation
    * SIMPLE 401(k) plans and SIMPLE IRA plans 1 Lesser of $11,500 or
    100% of participant's compensation
    Lesser of $11,500 or
    100% of participant's compensation
         
    IRA contribution limits    
    *Traditional IRAs Lesser of $5,000 or
    100% of earned income
    Lesser of $5,000 or
    100% of earned income
    *Roth IRAs Lesser of $5,000 or
    100% of earned income
    Lesser of $5,000 or
    100% of earned income
         
    Additional "catch-up" limits (individuals age 50 or older)    
    * 401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs 2 $5,500 $5,500
    * SIMPLE 401(k) plans and SIMPLE IRA plans $2,500 $2,500
    * IRAs (traditional and Roth) $1,000 $1,000
         
    Employer contribution/benefit limits 3    
         
    Defined benefit plan limits    
    *Annual contribution limit per participant No predetermined limit.
    Contributions based on amount needed to fund promised benefits
    No predetermined limit.
    Contributions based on amount needed to fund promised benefits
    *Annual benefit limit per participant Lesser of $195,000 or
    100% of average compensation for highest three consecutive years
    Lesser of $195,000 or
    100% of average compensation for highest three consecutive years

    1 Must aggregate employee contributions to all 401(k), 403(b), SAR-SEP, and SIMPLE plans of all employers. 457(b) plan contributions are not aggregated. For SAR-SEPs, the percentage limit is 25% of compensation reduced by elective deferrals (effectively, a 20% maximum contribution).

    2 Special catch-up limits may also apply to 403(b) and 457(b) plan participants.

    3 For self-employed individuals, compensation generally means earned income. This means that, for qualified plans, deductible contributions for a self-employed individual are limited to 20% of net earnings from self-employment (net profits minus self-employment tax deduction), and special rules apply in calculating the annual additions limit.

    Retirement Planning 2010 2011

    Defined contribution plan limits (qualified plans, 403(b) plans, SEP, and SIMPLE plans)

    *Annual addition limit per participant (employer contributions;
    employee pretax, after-tax, and Roth contributions; and forfeitures) (does not apply to SIMPLE IRA plans)
    Lesser of $49,000 or 100%
    (25% for SEP) of participant's compensation
    Lesser of $49,000 or 100%
    (25% for SEP) of participant's compensation
    *Maximum tax-deductible employer contribution (not applicable
    to 403(b) plans)
    25% of total compensation
    of employees covered under the plan (20% if self employed) plus any employee pretax and Roth contributions; 100% for SIMPLE plans
    25% of total compensation
    of employees covered under the plan (20% if self employed) plus any employee pretax and Roth contributions; 100% for SIMPLE plans
    Compensation limits/thresholds    
         
    Retirement plan compensation limits    
    *Maximum compensation per participant that can be used to
    calculate tax-deductible employer contribution (qualified plans and SEPs)
    $245,000 $245,000
    *Compensation threshold used to determine a highly-
    compensated employee
    $110,000
    (when 2010 is the look- back year)
    $110,000
    (when 2011 is the look- back year)
    *Compensation threshold used to determine a key employee in
    a top-heavy plan
    $1 for more-than-5%
    owners
    $160,000 for officers
    $150,000 for more-than-1%
    owners
    $1 for more-than-5%
    owners
    $160,000 for officers
    $150,000 for more-than-1%
    owners
    *Compensation threshold used to determine a qualifying
    employee under a SIMPLE plan
    $5,000 $5,000
    *Compensation threshold used to determine a qualifying
    employee under a SEP plan
    $550 $550
         
    Traditional deductible IRA income limits    
    *Income phase-out range for determining deductibility of
    traditional IRA contributions for taxpayers:
       
    1. Covered by an employer-sponsored plan and filing as:    
    Single $56,000-$66,000 $56,000-$66,000
    Married filing jointly $89,000-$109,000 $90,000-$110,000
    Married filing separately $0-$10,000 $0-$10,000
    2. Not covered by an employer-sponsored retirement plan,
    but filing joint return with a spouse who is covered by an employer-sponsored retirement plan
    $167,000-$177,000 $169,000-$179,000
         
    Roth IRA income limits    
    * Income phase-out range for determining ability to fund Roth
    IRA for taxpayers filing as:
       
    Single $105,000-$120,000 $107,000-$122,000
    Married filing jointly $167,000-$177,000 $169,000-$179,000
    Married filing separately $0-$10,000 $0-$10,000
         
    *Annual income limit for determining ability to convert traditional
    IRA to Roth IRA
    N/A N/A
    Investment Planning 2010 2011
    Tax on long-term capital gains    
    Taxpayers in tax rate brackets greater than 15% 15% 15%
    Taxpayers in tax rate brackets 15% or less 0% 0%
    Tax on dividends    
    *Maximum tax rate on dividends received by an individual shareholder from domestic and
    qualified foreign corporations
       
    Taxpayers in tax rate brackets greater than 15% 15% 15%
    Taxpayers in tax rate brackets 15% or less 0% 0%

    IMPORTANT DISCLOSURES
    Financial Visions does not provide investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances.

    To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

    These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.


    This material is designed to provide accurate and authoritative information with regard to the subject matter covered.  It is made available with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.