Additional Tax News for 2012

Along with the prospect of the Bush Tax cuts expiring at the end of 2012, there are also other important tax items to be aware of for this year.  There will be important tax credits and other benefits that will expire on 12/31/12 if Congress does not act.  Therefore, the increase in tax rates along with expiring tax benefits will produce one of the largest tax increase on American workers in many years.

Below is a list of tax credits/benefits that are set to expire at the end of 2012 or have already been repealed and are not availabe in 2012:

• Credit for non-business energy credit
• Alternative fuel vehicle refueling property credit
• Indian employment credit
• New energy efficient appliance credit
• Work Opportunity credit (except for certain veterans)
• Deduction of expenses for school teachers
• Deduction for mortgage insurance premiums
• Deduction for state and local sales taxes instead of state and local income taxes
• Tuition and fees dedcution
• Tax-free distribution from retirement accounts for charitable purposes
• First-time homebuyer credit

Tax planning has become more challenging over the years and 2012 is no exception. LFC can help provide the guideance to ensure one pays the appropriate amount of tax.  Below is material that can help one determine their up-coming tax liability (Estimated tax worksheets):

2012 Estimated Tax Worksheets


Contact the LFC office to assist you with the worksheets.