The following is a non-exhaustive list of frequently requested financial, education and estate tax planning numbers for the 2012 tax year.  This list is designed as a desk reference for use at home or at the office.  We encourage you to use this guide in collaboration with your accountant or tax professional.  Siena Wealth Advisors will update this tax guide every January in The Greater Lansing Business Monthly.

INCOME TAX & CAPITAL GAINS RATES, WITH DEDUCTIONS

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

Single                         10                                      1-8,700

                                   15                                      8,701-35,350

                                   25                                     35,351-85,650

                                   28                                     85,651-178,650

                                   33                                     178,651-388,350

                                   35                                     Over 388,350

Married Joint             10                                     1-17,400

                                  15                                     17,401-70,700

                                  25                                     70,701-142,700

                                  28                                     142,701-217,450

                                  33                                     217,451-388,350

                                  35                                     Over 388,350

Qualified Dividends                        15 percent

Long-Term Capital Gains Rate    15 percent

Standard Deductions

Single                                               $5,950

Joint Return                                     11,900

FICA & Self-Employment

Taxable wages for Social Security/Medicare        $110,100 / All

Personal Exemption                                           $3,800

Itemized Deduction Phase-Out

Single / Joint / HOH                                            $166,800*

Itemized Medical Expense Deductions

Subject to 7.5 percent floor for unreimbursed medical expenses

Mileage Rates (2012*)

- 55.5 cents per mile for business miles driven

- 23.5 cents per mile driven for medical or moving expenses

- 14 cents per mile driven in service of charitable organizations 

RETIREMENT RATES

Social Security Earnings Limit

Not full retirement age                                    $14,640

Full retirement age                                          unlimited

IRA Traditional & Roth Contribution

Standard                                                         $5,000

50 & over catch-up                                        $1,000

SIMPLE Deferral Limit

Standard                                                        $11,500

50 & over catch-up                                       $2,500

401(k) Deferral Limit

Standard                                                      $17,000

Self only / Family                                       $3,050 / 6,150

HSA Contribution Limit*

50 & over catch-up                                    $5,500

55 & older catch-up                                   $1,000

Estimated Roth IRA Phase-Out

Single / Head of household                       $110,000-125,000

Joint                                                          $173,000-183,000

Conversion limits have been removed

Maximum Annual Payout at Age 62 from a Defined Benefit Plan            $200,000

Maximum Annual Contribution to a Defined Contribution Account      $50,000

Maximum Elective 403(b) Deferrals

                                                                  $17,000

457 Deferral Limit                                  $17,000

Maximum annual compensation that can be used to determine benefits or contributions under a qualified plan        $250,000

Test to identify highly compensated employees              $115,000

EDUCATION SAVINGS TAX RATES

Student Loan Interest             $2,500

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       $5,120,000

Maximum Estate Tax Rate               35 percent

* Estimated amounts for 2012, as of press time these adjusted numbers were not available.

		Stephen L. Hicks, JD, MS, CPA and Roger L. Millbrook, JD, CPA/PFS, are fee-only fiduciary investment advisers and principals representing high-net worth investors at Siena Wealth Advisors, dedicated to serving the retirement and pension needs of individuals, small to mid-sized businesses and professional practices. Both advisers are accountants and hold law degrees as well as other advanced degrees and designations in the area of financial services.