By Marisol Martinez, KOS Staff mmartinez@koscpa.com
Congress has had their plate full in deciding the fate of our tax consequences. Some changes have already been made and some are still in the making.
Filing Deadline – This year your individual tax return deadline has been extended to April 17, 2012.
E-filing – For the most part, all accounting firms have been mandated to e-file all of their individual tax returns that are prepared. For those of you that already e-file your returns with your accountant, this will not change. However, those that have been requesting your accountant to paper file your return instead, this is a significant change. While e-filing is more the norm than the exception, there may be cases in which paper filing is necessary. Therefore, we do not know if the IRS will ever do away with paper filing but they may make it increasingly difficult.
Capital Gains – Through 2012, Capital Gains will remain at a tax rate of 0% for those in the 10% tax bracket and 15% for those in all other brackets. These rates were set to expire but with Tax Relief Act of 2010’s postponement the rates will continue through 2012.
Other Extended Items – The following items were also extended through 2012 so enjoy them while you can!
- American Opportunity Credit – This is a credit worth up to $2,500 for tuition and course materials paid. For more information visit: http://www.irs.gov/newsroom/article/0,,id=205674,00.html
- Child Tax Credit – This is a credit worth up to $1,000 depending on your income for each qualifying child. For more information visit: http://www.irs.gov/newsroom/article/0,,id=106182,00.html
- Included in the extensions through 2011 is the $250 deduction for elementary and high school educators. This is a deduction worth up to $250 of any unreimbursed expenses for books, supplies, etc. For more information visit: http://www.irs.gov/taxtopics/tc458.html
If you have any questions regarding the most recent tax law changes, do not hesitate in contacting Marisol Martinez or any other KOS professional at 847.580.4100.