Tax Tracker

Welcome to the CBIZ MHM Tax Tracker.  Click on any of the links below to read updates on the state of major tax provisions as of February 21, 2011.  Please check back frequently to stay abreast of new legislation being presented in Congress.

Legend
MFJ = Married taxpayers filing jointly
S = Single taxpayers
AGI = Adjusted Gross Income
AMT = Alternative Minimum Tax
SBJA = Small Business Act of 2010, enacted on September 27, 2010
Tax Relief Act - The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, enacted on December 17, 2010



Individual Income Tax Rates

Current State Prior to Passage of Tax Relief Act 2011 State If No Congressional Action Enacted Tax Relief Act

10%
15%
25%
28%

33%
35%


15%
28%
31%
36%
39.6%

Extends current rates through 2012.

Long-Term Capital Gains Rate

Current State Prior to Passage of Tax Relief Act 2011 State If No Congressional Action Enacted Tax Relief Act
Generally taxed at 15%. Generally taxed at 20% (18% for assets acquired after 12/31/00 and held 5 years). Extends 15% rate through 2012.

Dividends Tax Rate

Current State Prior to Passage of Tax Relief Act 2011 State If No Congressional Action Enacted Tax Relief Act
Qualified dividends taxed at a maximum rate of 15%. All dividends taxed at ordinary income rates. Extends 15% rate through 2012.

Repeal of Overall Limitation on Itemized Deductions

Current State Prior to Passage of Tax Relief Act 2011 State If No Congressional Action Enacted Tax Relief Act
No overall limitation on itemized deductions.

Otherwise allowable itemized deductions reduced by 3% of the amount by which AGI exceeds $171,100 (estimated), subject to a maximum reduction of 80%.

Extends current provision containing no limitations through 2012.

Repeal of Personal Exemption Phase-Outs

Current State Prior to Passage of Tax Relief Act 2011 State If No Congressional Action Enacted Tax Relief Act

No phase out of personal exemptions. 

Personal exemptions reduced by 2% for each $2,500 by which AGI exceeds $256,700 for MFJ and $171,100 for S (estimated).

Extends current provision containing no phase out through 2012.

Increased AMT Exemption for Individuals

Current State Prior to Passage of Tax Relief Act 2011 State If No Congressional Action Enacted Tax Relief Act

MFJ: $70,950 in 2009;
$45,000 in 2010
S: $46,700 in 2009; $33,750 in 2010.

Same lower exemption amounts as in 2010.

Increases exemption in 2010 to $72,450 MFJ ($47,450 S) and 2011 to $74,450 MFJ ($48,450 S).

Nonrefundable Personal Credits Allowed Against AMT

Current State Prior to Passage of Tax Relief Act 2011 State If No Congressional Action Enacted Tax Relief Act

Allowed in 2009, expired in 2010.

Not allowed against AMT.

Allows credits against AMT in 2010 and 2011.

Marriage Penalty Relief

Current State Prior to Passage of Tax Relief Act 2011 State If No Congressional Action Enacted Tax Relief Act

Size of 15% rate bracket for MFJ is double that of S; Standard deduction of MFJ double that of S.

Size of 15% rate bracket and standard deduction for MFJ reduced to approximately 60% of S.

Extends current bracket structure through 2012.

Child Tax Credit

Current State Prior to Passage of Tax Relief Act 2011 State If No Congressional Action Enacted Tax Relief Act

$1,000

$500

Extends current $1,000 credit through 2012.

Research and Experimentation Tax Credit

Current State Prior to Passage of Tax Relief Act 2011 State If No Congressional Action Enacted Tax Relief Act

Expired at end of 2009.

Expired.

Reinstates credit and extends it through 2011.

15 Year Cost Recovery for Qualified Leaseholds, Retail and Restaurant Property

Current State Prior to Passage of Tax Relief Act 2011 State If No Congressional Action Enacted Tax Relief Act

Expired at end of 2009.

39 year recovery period.

Reinstates 15-year recovery period for property placed in service before 1/1/12.

50% Bonus Depreciation

Current State Prior to Passage of Tax Relief Act 2011 State If No Congressional Action Enacted Tax Relief Act

Expires at end of 2010.

No bonus depreciation.

Allows for 100% bonus depreciation for property placed between 9/9/10 - 12/31/11 and 50% bonus depreciation for property placed in service in 2012 or before 9/9/2010.

Extended NOL Carryback

Current State Prior to Passage of Tax Relief Act 2011 State If No Congressional Action Enacted Tax Relief Act

5 year carryback only eligible on 2008/2009 losses.

Carryback period generally 2 years.

No provision.

 Deferral of COD Income

Current State Prior to Passage of Tax Relief Act 2011 State If No Congressional Action Enacted Tax Relief Act

Cancellation of indebtedness income deferred 4 years on certain repurchased or refinanced debt in 2010 (5 year deferral on 2009 debt).

No deferral of COD income.

No provision.

Small Business Stock Exclusion

Current State Prior to Passage of Tax Relief Act 2011 State If No Congressional Action Enacted Tax Relief Act

50% of gain from sale of qualified small business stock excluded from income, subject to AMT adjustment and remainder taxed at 28%; Stock issued between 2/18/09-9/27/10 subject to 75% exclusion; Stock issued between 9/28/10-12/31/10 subject to 100% exclusion with no AMT preference.

Exclusion reverts to 50% for stock issued after 12/31/10.

Extends 100% exclusion and elimination of AMT preference to stock issued before 1/1/12.

Estate Tax

Current State Prior to Passage of Tax Relief Act 2011 State If No Congressional Action Enacted Tax Relief Act

Repealed; 2009 exclusion was $3.5 million with top rate of 45%.

Reinstituted with lifetime exclusion of $1,000,000 and top rate of 55%.

Reinstates tax with $5 million exclusion and top rate of 35% through 2012, retroactive to 1/1/10. For decedents dying in 2010, executors may elect to apply current rules (no estate tax, limited basis step-up). Gift tax exemption would conform with estate tax exemption for gifts made in 2011-2012. Unused exemption of taxpayers dying in 2011-2012 may be used by surviving spouse.




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