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Income Tax News 2012

Due Date Of Return

File Form 1040 by April 17th 2012. The tax due date is April 17th instead of April 15th, because April 15th is a Sunday and April 16th is the Emancipation Day holiday in the District of Columbia.

Capital Gains and Losses

In most cases, you must report your capital gains and losses on new Form 8949 and report the totals on Schedule D. If you sold a covered security in 2011, your broker will send you a Form 1099-B (or substitute statement) that shows your basis. This will help you complete Form 8949. Generally, a covered security is a security acquired after 2010.

Self-Employed Health Insurance Deduction

This deduction is no longer allowed on Schedule SE. However, you can still take it on Form 1040.

Alternative Minimum Tax (AMT) Exemption Amount Increased

The AMT exemption amount has increased to $48,450 ($74,450 if married filing jointly or a qualifying widow(er); $37,225 if married filing separately).

First-Time Homebuyer Credit

To claim the first-time homebuyer credit for 2011, you (or your spouse if married) must have been a Member of the Uniformed Services or Foreign Service or an Employee of The Intelligence Community on qualified official extended duty outside the United States for at least 90 days during the period beginning after December 31, 2008, and ending before May 1, 2010.

Repayment Of First-Time Homebuyer Credit

If you have to repay the credit, you may be able to do so without attaching Form 5405.

Standard Mileage Rates

The 2011 rate for business use of your vehicle is increased to 51 cents a mile (55 and a half cents a mile after June 30, 2011). The 2011 rate for use of your vehicle to get medical care or to move is increased to 19 cents a mile (23 and a half cents a mile after June 30, 2011). In addition, beginning in 2011, you may use the business standard mileage rate for a vehicle used for hire, such as a taxicab.

Roth IRAs

If you converted or rolled over an amount to a Roth IRA in 2010 and did not elect to report the taxable amount on your 2010 return, you generally must report half of it on your 2011 return and the rest on your 2012 return.

Designated Roth Accounts

If you rolled over an amount from a 401(k) or 403(b) plan to a designated Roth account in 2010 and did not elect to report the taxable amount on your 2010 return, you generally must report half of it on your 2011 return and the rest of it on your 2012 return.

Health Savings Accounts (HSAs) And Archer MSAs

The additional tax on distributions from HSAs and Archer MSAs not used for qualified medical expenses has increased to 20% for distributions after 2010.

Foreign Financial Assets

If you had Foreign Financial Assets in 2011, you may have to file new Form 8938 with your return.

Schedule L

Schedule L is no longer in use. You do not need it to figure your 2011 standard deduction.

Expired Tax Benefits

The making work pay credit has expired. You can't claim it on your 2011 return. Schedule M is no longer in use. You can no longer claim the Alternative Motor Vehicle Credit for a vehicle you bought after 2010, unless the vehicle is a new fuel cell motor vehicle.

Mailing Your Return

If you are filing a paper return, you may be mailing it to a different address this year because the IRS has changed the filing location for several areas.

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