Tax Tip: Changes on this year's Form 1040
There is not much new for the 2012 federal income tax return – other than the annual indexing for inflation.
NEW YORK (MainStreet) — There is not much new for the 2012 federal income tax return — other than the annual indexing for inflation.
The personal exemption is $3,800.
The standard deduction amounts are:
Single (and married filing separate) = $5,950
Married filing joint = $11,900
Head of household = $8,700
Dependent = the greater of earned income plus $300 or $950, not to exceed $5,950.
The additional standard deduction amounts for taxpayers age 65 and older or blind are:
Single or head of household = $1,450
Married (joint or separate) = $1,150
The 2012 Form 1040 and 1040A are the same as their 2011 counterparts. Certain lines are marked “reserved,” though. Lines 23 and 34 on the 2012 Form 1040, and Lines 16 and 18 on the 1040A, are “reserved” for the deductions for educator expenses and tuition and fees, respectively. Similarly, item b of Line 5 under “Taxes You Paid” on the 2012 Schedule A is “Reserved” for the option to deduct state and local sales taxes instead of state and local income taxes.
These deductions expired Dec. 31 but were extended as part of last-minute compromise tax legislation after the IRS “went to press” with 2012 forms.
Included in the temporary tax benefits that expired in 2011 and have not yet been extended for 2012 is the Alternative Minimum Tax “patch.” If this “patch” is not extended by Congress the processing of 2012 income tax returns and the issuance of tax refunds will be greatly delayed.