IRS Update: Federal Tax Provisions Not Applicable for 2012 Tax Returns

As we move towards the 2013 Filing Season you will need to keep an eye out on what Congress does with regard to the “Extender” tax provisions that expired at the end of 2011.

Here are two lists of the provisions that will have the most impact on individual Tax Year 2012 Federal returns.

Provisions that are no longer applicable for Tax Year 2012 Federal returns:

• $250 Educator Expense Deduction – Form 1040, line 23
• Tuition and Fees Deduction – Form 8917
• Itemized Deduction for Sales Tax
• All personal nonrefundable tax credits allowed when calculating Alternative Minimum Tax
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Provisions that changed significantly for Tax Year 2012 returns:

• Alternative Minimum Tax (AMT) exemption amounts revert to what they were for Tax Year 2000: Tax Year 2012 AMT exemption amount is:
• Single/Head of Household: $33,750
• Married Filing Joint: $45,000
• Married Filing Separate: $22,500
• Maximum Section 179 Deduction amount has been reduced to $139,000 for Tax Year 2012
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Click here to read the entire CrossLink Tax Update that includes further information regarding Federal tax provisions that are not applicable or have been changed for Tax Year 2012 Federal tax returns.