I attended the Financial Planning Association’s 2011 Current Tax Issues and Planning Strategies Seminar last week. Below are some items of interest:
- Individual tax rates will remain 10%, 15%, 25%, 28%, 33%, and 35% through December 31, 2012
- Itemized deduction phase out and personal exemption phase out will remain repealed through December 31, 2012
- The ability to deduct state and local sales tax in place of state and local income tax is extended through 2011
- Individual capital gain and dividend tax rates will remain 15% maximum through December 31, 2012 (0% for taxpayers in the 10% and 15% tax rate brackets)
- Child tax credit will remain $1,000 per qualifying child through December 31, 2012; and allowed against the AMT
- Temporary relief of the estate tax. $5 million per individual, or $10 million per couple, is exempt from estate tax
- Energy tax credit of 10% of expenses up to $500
- Student loan interest deduction is extended through December 31, 2012
- Dependent care credit extended at a maximum of $3,000 for one child, and $6,000 for two or more children, through December 31, 2012
If you would like to discuss potential tax planning strategies specific to your situation, or have any questions, please give me a call at 913.693.7918, or email me at [email protected], to schedule your free consultation.
John P. Chladek, MBA, CFP® is the President and Founder of Chladek Wealth Management, LLC, a fee-only financial planning and investment management firm specializing in helping families and couples who are not yet retired realize their financial goals. For more information, visit http://www.chladekwealth.com.