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Yerkes & Michels, CPA, LLC
Tax Information
We invite you to utilize our website to extend your knowledge in various areas of tax regulation by visiting our Tax Information page. We will post a short article regarding a topic of tax regulation that is applicable to many taxpayers. The topics will be periodically changed, so check back with us often.
Extended Due Dates
The due date for tax returns typically due April 15th will have until April 17, 2012 to file their returns and pay the tax due. This is due to Emancipation Day falling on April 16th and the 15th being the weekend. Taxpayers requesting an extension will still have until October 15, 2012 to file their 2011 returns.
2011 and 2012 Mileage Rates
The IRS issued the following mileage rates beginning January 1, 2011 through June 30, 2011:
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51 cents per mile for business miles driven
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19 cents per mile for medical or moving purposes
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14 cents per mile in service to a charitable organization
For the remainder of 2011, the rates for July 1, 2011 through December 31, 2011 were:
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55.5 cents per mile for business miles driven
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23.5 cents per mile for medical or moving purposes
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14 cents per mile in service to a charitable organization
The IRS has issued the following mileage rates beginning January 1, 2012:
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55.5 cents per mile for business miles driven
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23 cents per mile for medical or moving purposes
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14 cents per mile in service to a charitable organization
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS), after claiming a Section 179 deduction for that vehicle, for any vehicle used for hire or for more than four vehicles used simultaneously. Beginning 2011, businesses may use the standard mileage rates for vehicles used for hire, such as taxicabs.
IRA Contribution Limits
The maximum IRA contribution amount for 2011 for an individual under age 50 is $5,000, and for those between the age of 50 and 70 1/2 at December 31, 2011, the maximum is $6,000. Phase-out rules may apply if the taxpayer or spouse is an active participant in a retirement plan. The 2010 contribution can be made any time up until April 17, 2012.
Dividends and Long Term Capital Gains
Dividends are made up of two sources of Income.
1.) Dividends are a distribution of earnings and profits of a corporation to its stockholders. These dividends are qualified dividends.
2.) Short Term Gains on investments in an account with an Investment Firm are also shown as Dividend Income; these are taxed at ordinary rates.
Dividends, Interest Income and Capital Gains are taxable in the resident state of the taxpayer not in the state they are earned. Dividends (qualified) and Long Term Capital Gains are taxed at 0% to 15% Maximum Rates. These tax rates on Dividends and Capital Gain were extended through December 31, 2012.
If you would like additional tax information, please call our office at 620-331-4600.
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