The following is a nonexhaustive guide of frequently requested financial, education and estate tax planning numbers for the 2011 tax year.  This guide is designed as a desk reference for use at home or at the office. *As this article goes to press, there is still much uncertainty regarding the 2011 tax law. There are many “Bush tax cuts” that are set to expire at the end of 2010. However, as we write, Congress is discussing many issues that could change the following tax rates. We encourage you to use this guide in collaboration with your accountant or tax professional. Siena Capital Management updates the below tax guide every January in The Greater Lansing Business Monthly.  

The below has been amended to reflect current tax information.

INCOME TAX & CAPITAL GAINS RATES, WITH DEDUCTIONS

Filing Status  Rate (%)  2011 Taxable Income ($) Brackets 

Single                                    10                        $1 - $8,500

                                             15                        8,501 – 34,500

                                             25                        34,501 – 83,600

                                             28                        83,601 – 174,400

                                             33                        174,401 – 379,150

                                             35                        Over 379,150

Married Joint                        10                        $1 - $17,000 

                                          15                        17,000 – 69,000 

                                          25                        69,001 – 139,350

                                          28                        139,351 – 212,300

                                          33                        $212,301 – 379,150

                                          35                        Over 379,150

Qualified Dividends                                    15%/0

Long Term Capital Gains Rate                    15%/0

Standard Deductions                        FICA & Self-Employment

Single                            $5,800         Taxable wages for    Social Security/Medicare            $106,800 / All 2% Reduction in Employee Social Security Tax

Joint Return                    11,600                         

Personal Exemption      $3,700                        Itemized Deduction Phase-Out            Single / Joint / HOH            $166,800*

Itemized Medical Expense Deductions         Subject to 7.5% floor for un-reimbursed medical expenses.

Mileage Rates (2011)

• 51 cents per mile for business miles driven;
• 19 cents per mile driven for medical or moving purposes; and
• 14 cents per mile driven in service of charitable organizations.

RETIREMENT RATES

Social Security Earnings Limit

Not full retirement age                   $14,160

Full retirement age                        unlimited 

IRA Traditional & Roth Contribution            SIMPLE Deferral Limit

Standard                                    $5,000                        Standard                        $11,500

50 & over catch up                       1,000                        50 & over catch up             2,500

401(k) Deferral Limit                                    HSA Contribution Limit

Standard                                    $16,500            Self only / Family                        $3,050 / 6,150

50 & over catch up                        5,500              55 & older catch up                         1000

Estimated Roth IRA Phase-Out

Single / Head of household            $107,000 – 122,000

Joint                                            169,000 – 179,000

Conversion limits have been removed

Maximum Annual Payout at Age 62 from a Defined Benefit Plan                $195,000

Maximum Annual Contribution to a Defined Contribution Account           $49,00 

Maximum Elective 403(b) Deferrals                   $16,500

457 Deferral Limit                $16,500

Maximum Annual Compensation that can be used to determine benefits or contributions under a Qualified Plan                  $245,000

Test to Identify Highly Compensated Employees                 $110,000

EDUCATION SAVINGS TAX RATES

Student Loan Interest $2,500.

Education Tax Credits

Hope Scholarship Credit/            $2,500 (per student)

American Opportunity

Coverdell ESAs                       $2,000 (subject to phase out and not tax deductible)

PERSONAL RESIDENCE

Maximum Exclusion for Sale of a Residence (occupied 2 out of 5 years)

Single                                                $250,000

Married filing Jointly                            $500,000

Home Mortgage Interest Deduction                     $1,000,000 (maximum amount of note)

Home Equity Interest Deduction                        $100,000 (maximum amount of note)

GIFT & ESTATE TAX 

Annual Gift Tax Exclusion                          $13,000 ($26,000 for joint gift)

Estate Tax applicable exclusion amount        $5,000,000/person-applies retroactively to 2010, election to be made to use original 2010 rules or the new rule. 

Maximum Estate Tax Rate                            35% 

		Stephen L. Hicks, JD, MS, CPA and Roger L. Millbrook, JD, CPA/PFS, are Fee-Only Fiduciary Investment Advisers and principals of Siena Capital Management, LLC.  Part of a larger Siena team, both professionals are lawyers and accountants and hold other degrees or designations in the area of financial services. Siena was recently listed by CPA Wealth Provider Magazine as one of the Top Investment Advisory Firms in the United States. Siena is the only investment firm headquartered in mid-Michigan to make the exclusive list. Siena advisers can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .