2012 Deductions and Exclusions:

Foreign Earned Income Exclusion:

• $95,100

Personal exemption:

• $3,800
• AGI phaseout threshold - N/A (eliminated for 2010-2012).

Standard deduction:

• Single taxpayers: $5,950
• Joint filers and surviving spouses: $11,900
• Married taxpayers filing separately: $5,950 ($0 if spouse itemizes)
• Heads of household: $8,700
• Additional standard deduction for 65+ and blind taxpayers:
  • Single taxpayers or Heads of household: $1,450
  • Married filers and surviving spouses: $1,150

Standard deduction for individuals who are dependents cannot exceed the greater of $950 or $300 plus the individual's earned income.

Itemized Deductions:

No phaseout of items for higher income individuals in 2010 to 2012.

Some Itemized Deductions may be subject to taxation at AMT rates. Whether to itemize or not requires analysis and strategy to obtain the best financial result.

Please contact us for professional assistance specific to your unique situation.

Tax Rates | Deductions | Retirements Plans