Filing Status And Exemptions
Strategies For Individual Taxpayers
A good way to start your year-end tax planning.is by taking a look at last year's individual income-tax return - Form 1040. You can use your 2011 information to help you assess your current tax situation and identify potential strategies for lowering your 2012 taxes.
Filing Status And Exemptions
You need to know your filing status to determine your tax bracket (see table below), the extent to which certain phase outs and limitations apply to you, and how large a standard deduction you may claim if you don't itemize deductions. Married couples generally receive more favorable tax treatment filing jointly, but not always. Depending on your respective itemized deductions (see page 8) and income, you could owe less tax by filing separately.
You can claim a personal exemption for yourself, your spouse, and for any qualified dependent. In 2012, each exemption you claim reduces your taxable income by $3,800.
| Rate (%) |
Single | Head of household |
Married filing jointly (& surviving spouses) |
Married filing separately |
| 10 | SO - 8.700 | $0 - 12,400 | $0-17,400 | $0 - 8,700 |
| 15 | $8,701 - 35,350 | $12,401 - 47,350 | $17,401 - 70,700 | $8,701 - 35,350 |
| 25 | $35,351 - 85,650 | $47,351 -122,300 | $70,701 - 142,700 | $35,351 - 71,350 |
| 28 | $85,651 - 178,650 | $122 ,301 - 198,050 | $142,701 - 217,450 | $71,351 - 108,725 |
| 33 | $178,651 - 388,350 | $198,051 - 388.350 | $217,451-388,350 | $108,726 - 194,175 |
| 35 | Over $388,350 | Over $388,350 | Over $388,350 | Over $ 194,175 |
Do you have a child in college? Check to be sure he or she still qualifies as your dependent. There are some very specific requirements. For example, your child must be younger than 24 as of year-end, be enroll led as a full -time student for some part of at least five calendar months during the year, and live with you for more than half the year (treating temporary absences from home due to education, illness, military service, and certain other special circumstances as time spent living with you). Also, your child cannot provide more than half of his or her own support.
