2011 Individual Tax
Individual Income Tax for 2011
- Adjusted Gross Income
- There are no significant changes to the calculation of gross income and adjusted gross income between 2010 and 2011.
- Taxable Income
- Taxable income will rise in 2011 for most taxpayers due to lower basic standard deduction amounts and the re-imposition of limits on personal exemptions and many itemized deductions.
- Tax Liability
- In general, the calculation of regular tax liability between 2010 and 2011 remains unchanged except for the significant exception of the individual income tax rates as set forth below.
- Alternative Minimum Tax Liability
- The rates and exemption amounts for 2010 remain unchanged for 2011.
- Special Capital Gains and Dividends Rates
- Maximum tax rates apply to capital gains.
- Credits Against Tax
- The individual may reduce his or her tax liability by any available tax credits. For example, tax credits are allowed for certain business expenditures, certain foreign income taxes paid or accrued, certain elderly or disabled individuals, certain child care expenditures, certain adoption expenses, the earned income tax credit (“EITC”) for low-income workers who satisfy certain requirements, the child tax credit, and the credit for certain health care expenses. Additional tax credits include: the making work pay tax credit, the American opportunity tax credit, and a tax credit for certain first-time homebuyers. Tax credits allowed against the regular tax are not uniformly allowed against the alternative minimum tax. A brief description of the most widely used credits follows. The expiration of part or all of these tax credits will increase tax liability for 2011.
