{"id":74,"date":"2012-02-28T23:56:45","date_gmt":"2012-02-28T23:56:45","guid":{"rendered":"https:\/\/ayoub-associates.com\/blog\/?p=74"},"modified":"2012-07-31T04:46:37","modified_gmt":"2012-07-31T04:46:37","slug":"10-things-you-should-know-about-your-2011-taxes","status":"publish","type":"post","link":"https:\/\/ayoub-associates.com\/blog\/10-things-you-should-know-about-your-2011-taxes\/","title":{"rendered":"10 Things You Should Know About Your 2011 Taxes"},"content":{"rendered":"

With the Bush-era tax cuts set to expire at the end of this year and
\nCongress debating how to balance the budget, 2011 may look like a calm tax year
\nbefore the storm. But many Americans will find that personal and political
\nfactors, from moving back home to live with parents to new reporting
\nrequirements, make the process more complicated than it first appears. Here are
\n10 things you should know before
\nfiling 2011 taxes<\/a>:<\/p>\n

1. You’re probably in for a refund.<\/strong><\/p>\n

Let’s start with the good news: About 3 in 4 Americans receive tax
\nrefunds<\/a> each year, and the average refund is around $3,000. According to a
\nTD Ameritrade survey, most taxpayers plan to use
\nthe windfall to pay off debt, save, or invest the money. Just 14 percent will
\nuse the money to splurge on a luxury item. Knowing that refund is coming might
\noffer some motivation to file early. “If you file early, you get your
\nmoney early, but if you owe, you do not have to pay early,” explains Mark Steber, chief tax officer at tax services provider
\nJackson Hewitt and chairman of the IRS’s Electronic Tax
\nAdministration Advisory Committee.<\/p>\n

2. Refunds arrive faster for those who file electronically. <\/strong><\/p>\n

While most people opt to file electronically, about 3 in 10 Americans still
\nstick with the old-school paper method, and that can cost them time. Electronic
\nfilers receive their refunds faster, usually in less than 10 days, and they can
\nopt for direct deposit into their bank account for even faster access to their
\nmoney. And thanks to an alliance between tax software companies and the IRS,
\nanyone who earned less than $57,000 in 2011 can use name-brand tax software and
\nelectronically
\nfile<\/a> their taxes for free. Visit www.irs.gov\/freefile<\/a>
\nto get started.<\/p>\n

3. Major life changes can mean major tax changes.<\/strong><\/p>\n

Anyone who got married, had a baby, got divorced, or experienced any other
\nmajor lifestyle shake-up that affects the number of people in their household
\nwill need to update their taxes accordingly, says Steber, because those types
\nof changes have a major impact on one’s tax status. In fact, choosing the wrong
\ntax status can have a major impact on one’s tax refund
\n(or liability), and it’s not always as easy as it sounds. For example, new
\nparents<\/a> sometimes make the mistake of forgetting to add their latest
\naddition as a dependent, or married couples living separately might not realize
\nthey can still file jointly.<\/p>\n

4. If you’re supporting a family member, you might be eligible for a
\ntax break.<\/strong><\/p>\n

“If you’re taking care of a dependent parent and providing more than
\none-half of their support, then they may qualify as a dependent, like with a
\nnew child,” says Steber. As baby boomers age, that situation will likely
\nbecome increasingly common, he adds. Specific costs, such as medical expenses
\nor home renovations to make room for a live-in parent, could qualify as
\ndeductions, too. Parents welcoming home adult children could find themselves in
\na similar situation; Steber suggests getting customized advice from a tax
\nprofessional to check on any potential tax benefits.<\/p>\n

5. Independent income often means you can deduct business expenses.<\/strong><\/p>\n

Steber notes that many Americans, particularly those who experienced
\nlayoffs, have launched their own small businesses. “Tax law is favorable
\nto that,” he says, and often miles driven, meals, and other expenses
\nrelated to the business can be deducted from one’s income. Of course, anyone
\nclaiming those expenses needs to keep track of receipts.<\/p>\n

6. A new tax year means different numbers.<\/strong><\/p>\n

When it comes to income limits for certain tax breaks, exemptions, and tax
\nbrackets, the numbers are constantly changing, which means you can’t just copy
\nnew income numbers into last year’s return. Barbara Weltman, a tax expert and
\nauthor of J.K. Lasser’s 1001 Deductions and Tax Breaks<\/em>, points out
\nthat the Alternative Minimum Tax exemption amount is higher this year ($48,450
\nor $74,450 if married filing jointly) and the home-energy credit amount has
\nalso changed, for example.<\/p>\n

[See 10
\nPlaces to Retire on Social Security Alone<\/a>.]<\/p>\n

Weltman adds that because eligibility for various types of tax-advantaged
\naccounts, such as the Roth IRA, depends on a income level that is indexed to
\ninflation, people may qualify to make a Roth IRA contribution this year when
\nthey haven’t in the past, particularly if their income didn’t increase (or they
\nlost their job). “Look at all the breaks available to you and don’t assume
\nyou can’t [make contributions] this year,” she suggests.<\/p>\n

7. Reporting requirements have been ratcheted up a few notches. <\/strong><\/p>\n

Mark Luscombe, principal federal tax analyst for the tax firm CCH, notes
\nthat a new form–Form 8949–as well as a change to Form 1099-B means that
\ninvestors (and their brokers) have additional reporting duties for 2011 for any
\nsales or exchanges of capital assets, and the IRS will check to make sure the
\nnew information matches that on taxpayers’ returns. “If you’re not
\ncareful, you’re likely to be audited if the forms don’t match,” he warns.
\nAny foreign assets, if the value of all foreign assets of a single taxpayer
\nliving in the United States is over $50,000 on the last day of 2011 or $75,000
\nat any time during 2011 (or $100,000 and $150,000 respectively for married
\ncouples filing jointly), also have to be reported on a new form (Form 8938).
\nSmall business owners receiving payments through PayPal, Amazon, or similar
\nservices should also know that those online payment processors will begin
\nreporting income to the IRS for the first time this year. The rule applies to
\nanyone who earns over $20,000 a year and exceeds 200 separate payments.<\/p>\n

8. Taxes are due for 2010 Roth conversions.<\/strong><\/p>\n

In 2010, many taxpayers converted their traditional individual retirement
\naccounts into Roth IRAs, which allows money to grow tax-free. That’s because in
\n2010, high earners (anyone earning over $100,000) were allowed to make the
\nconversions for the first time. The IRS allowed taxpayers to pay the taxes owed
\nin the conversion in two separate chunks, in 2011 and 2012, to ease the strain.
\n“That means anyone who converted in 2010 and elected to defer the tax now
\nmust pay that first chunk, explains Luscombe.<\/p>\n

[What
\nYou Need to Know Before Filing Taxes<\/a>]<\/p>\n

9. It’s time to pay up for that 2008 homebuyer’s credit, too. <\/strong><\/p>\n

Weltman points out that anyone who took advantage of the first-time
\nhomebuyer’s credit in 2008 must pay back part of that credit, which was
\nessentially an interest-free loan, now. (Taxpayers who picked up the credit in
\n2009 or 2010 are not required to repay it.) The IRS offers an account
\nlook-up tool<\/a> to make it easier.<\/p>\n

10. We should all prepare for a big shake-up. <\/strong><\/p>\n

In retrospect, filing 2011 taxes might seem like a piece of cake compared to
\nwhat’s in store for taxpayers. The upcoming Congressional debates over how to
\nbalance the budget, the presidential election, and the expiration of the Bush tax cuts along with dozens of other provisions
\nthat are set to expire this year, suggest many changes are on the horizon. Says
\nSteber: “2013 will be a crazy time for taxes.”<\/p>\n

By <\/cite>Kimberly Palmer<\/em> | <\/cite>U.S.News & World Report LP<\/em> \u2013 Wed, Feb 22, 2012 1:47 PM EST<\/cite><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

With the Bush-era tax cuts set to expire at the end of this year and Congress debating how to balance the budget, 2011 may look like a calm tax year […]<\/p>\n","protected":false},"author":88890,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-74","post","type-post","status-publish","format-standard","hentry","category-tax-tips"],"yoast_head":"\n10 Things You Should Know About Your 2011 Taxes - Ayoub Sidhum & Co.<\/title>\n<meta name=\"description\" content=\"Ayoub and Associates CPA Firm is a full service Corona CPA firm that provides services in accounting, tax preparation and planning, IRS audit, and sales tax. We service Corona, Riverside, Pomona, Fontana, Chino Hills, Yorba Linda, Norco, Mira Loma, Orange County, Riverside, San Bernardino and Los Angeles, CA.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ayoub-associates.com\/blog\/10-things-you-should-know-about-your-2011-taxes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"10 Things You Should Know About Your 2011 Taxes - Ayoub Sidhum & Co.\" \/>\n<meta property=\"og:description\" content=\"Ayoub and Associates CPA Firm is a full service Corona CPA firm that provides services in accounting, tax preparation and planning, IRS audit, and sales tax. We service Corona, Riverside, Pomona, Fontana, Chino Hills, Yorba Linda, Norco, Mira Loma, Orange County, Riverside, San Bernardino and Los Angeles, CA.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ayoub-associates.com\/blog\/10-things-you-should-know-about-your-2011-taxes\/\" \/>\n<meta property=\"og:site_name\" content=\"Ayoub Sidhum & Co.\" \/>\n<meta property=\"article:published_time\" content=\"2012-02-28T23:56:45+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2012-07-31T04:46:37+00:00\" \/>\n<meta name=\"author\" content=\"Fiby\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Fiby\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ayoub-associates.com\/blog\/10-things-you-should-know-about-your-2011-taxes\/\",\"url\":\"https:\/\/ayoub-associates.com\/blog\/10-things-you-should-know-about-your-2011-taxes\/\",\"name\":\"10 Things You Should Know About Your 2011 Taxes - Ayoub Sidhum & Co.\",\"isPartOf\":{\"@id\":\"https:\/\/ayoub-associates.com\/blog\/#website\"},\"datePublished\":\"2012-02-28T23:56:45+00:00\",\"dateModified\":\"2012-07-31T04:46:37+00:00\",\"author\":{\"@id\":\"https:\/\/ayoub-associates.com\/blog\/#\/schema\/person\/819e669f94ef1ae143e30897e4f5f9bd\"},\"description\":\"Ayoub and Associates CPA Firm is a full service Corona CPA firm that provides services in accounting, tax preparation and planning, IRS audit, and sales tax. We service Corona, Riverside, Pomona, Fontana, Chino Hills, Yorba Linda, Norco, Mira Loma, Orange County, Riverside, San Bernardino and Los Angeles, CA.\",\"breadcrumb\":{\"@id\":\"https:\/\/ayoub-associates.com\/blog\/10-things-you-should-know-about-your-2011-taxes\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ayoub-associates.com\/blog\/10-things-you-should-know-about-your-2011-taxes\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ayoub-associates.com\/blog\/10-things-you-should-know-about-your-2011-taxes\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ayoub-associates.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"10 Things You Should Know About Your 2011 Taxes\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ayoub-associates.com\/blog\/#website\",\"url\":\"https:\/\/ayoub-associates.com\/blog\/\",\"name\":\"Ayoub Sidhum & Co.\",\"description\":\"Full Service Riverside CPA & Accounting\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ayoub-associates.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/ayoub-associates.com\/blog\/#\/schema\/person\/819e669f94ef1ae143e30897e4f5f9bd\",\"name\":\"Fiby\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ayoub-associates.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/6493359f34c77dabe419ce4aac7ae21b?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/6493359f34c77dabe419ce4aac7ae21b?s=96&d=mm&r=g\",\"caption\":\"Fiby\"},\"url\":\"https:\/\/ayoub-associates.com\/blog\/author\/fiby\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"10 Things You Should Know About Your 2011 Taxes - Ayoub Sidhum & Co.","description":"Ayoub and Associates CPA Firm is a full service Corona CPA firm that provides services in accounting, tax preparation and planning, IRS audit, and sales tax. We service Corona, Riverside, Pomona, Fontana, Chino Hills, Yorba Linda, Norco, Mira Loma, Orange County, Riverside, San Bernardino and Los Angeles, CA.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ayoub-associates.com\/blog\/10-things-you-should-know-about-your-2011-taxes\/","og_locale":"en_US","og_type":"article","og_title":"10 Things You Should Know About Your 2011 Taxes - Ayoub Sidhum & Co.","og_description":"Ayoub and Associates CPA Firm is a full service Corona CPA firm that provides services in accounting, tax preparation and planning, IRS audit, and sales tax. We service Corona, Riverside, Pomona, Fontana, Chino Hills, Yorba Linda, Norco, Mira Loma, Orange County, Riverside, San Bernardino and Los Angeles, CA.","og_url":"https:\/\/ayoub-associates.com\/blog\/10-things-you-should-know-about-your-2011-taxes\/","og_site_name":"Ayoub Sidhum & Co.","article_published_time":"2012-02-28T23:56:45+00:00","article_modified_time":"2012-07-31T04:46:37+00:00","author":"Fiby","twitter_misc":{"Written by":"Fiby","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/ayoub-associates.com\/blog\/10-things-you-should-know-about-your-2011-taxes\/","url":"https:\/\/ayoub-associates.com\/blog\/10-things-you-should-know-about-your-2011-taxes\/","name":"10 Things You Should Know About Your 2011 Taxes - Ayoub Sidhum & Co.","isPartOf":{"@id":"https:\/\/ayoub-associates.com\/blog\/#website"},"datePublished":"2012-02-28T23:56:45+00:00","dateModified":"2012-07-31T04:46:37+00:00","author":{"@id":"https:\/\/ayoub-associates.com\/blog\/#\/schema\/person\/819e669f94ef1ae143e30897e4f5f9bd"},"description":"Ayoub and Associates CPA Firm is a full service Corona CPA firm that provides services in accounting, tax preparation and planning, IRS audit, and sales tax. We service Corona, Riverside, Pomona, Fontana, Chino Hills, Yorba Linda, Norco, Mira Loma, Orange County, Riverside, San Bernardino and Los Angeles, CA.","breadcrumb":{"@id":"https:\/\/ayoub-associates.com\/blog\/10-things-you-should-know-about-your-2011-taxes\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ayoub-associates.com\/blog\/10-things-you-should-know-about-your-2011-taxes\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ayoub-associates.com\/blog\/10-things-you-should-know-about-your-2011-taxes\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ayoub-associates.com\/blog\/"},{"@type":"ListItem","position":2,"name":"10 Things You Should Know About Your 2011 Taxes"}]},{"@type":"WebSite","@id":"https:\/\/ayoub-associates.com\/blog\/#website","url":"https:\/\/ayoub-associates.com\/blog\/","name":"Ayoub Sidhum & Co.","description":"Full Service Riverside CPA & Accounting","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ayoub-associates.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/ayoub-associates.com\/blog\/#\/schema\/person\/819e669f94ef1ae143e30897e4f5f9bd","name":"Fiby","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ayoub-associates.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/6493359f34c77dabe419ce4aac7ae21b?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/6493359f34c77dabe419ce4aac7ae21b?s=96&d=mm&r=g","caption":"Fiby"},"url":"https:\/\/ayoub-associates.com\/blog\/author\/fiby\/"}]}},"_links":{"self":[{"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/posts\/74","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/users\/88890"}],"replies":[{"embeddable":true,"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/comments?post=74"}],"version-history":[{"count":3,"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/posts\/74\/revisions"}],"predecessor-version":[{"id":162,"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/posts\/74\/revisions\/162"}],"wp:attachment":[{"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/media?parent=74"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/categories?post=74"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ayoub-associates.com\/blog\/wp-json\/wp\/v2\/tags?post=74"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}