USA TAXES CHANGES 2011

Pending Tax Changes – Be Sure To Prepare Yourself
CREDIT FOR ARTICLEl Posted by: “Paul Turner” paulalanturner@yahoo.com paulalanturner
Thu Jul 15, 2010 5:06 pm (PDT)

The largest tax hikes in history will happen January 1, 2011 and the Internal Revenue Service has stepped up audits of tax returns.
 
In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business owners, and families. These will all expire on January 1, 2011:

Tax Planning is necessary and you should contact us at ETC Consulting, Inc. immediately for a tax plan and a review of the last 3 years tax returns to determine your 2010 strategy.
 

Individuals:
Personal income tax rates will rise.
– The 10% bracket rises to an expanded 15%
– The 25% bracket rises to 28%
– The 28% bracket rises to 31%
– The 33% bracket rises to 36%
– The 35% bracket rises to 39.6%

Higher taxes on marriage and family.
1) The “marriage penalty”.
2) Narrower tax brackets for married couples will return from the first dollar of income. The child tax credit will be cut in half from $1000 to $500 per child.
3) The standard deduction will no longer be doubled for married couples relative to single level.
4) The dependent care and adoption tax credits will be cut.

The return of the Death Tax.
This year, there is no death tax. For those dying on or after January 1, 2011, there is a 55 percent top death tax rate on estates over $1 million. A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones.

Higher tax rates on savers and investors.
The capital gains tax will rise from 15 percent this year to 20 percent in 2011. The dividends tax will rise from 15 percent this year to 39.6 percent in 2011. These rates will rise another 3.8 percent in 2013.

Health care changes.
Americans will no longer be able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).

The “Special Needs Kids Tax”.
This provision of Health care imposes a cap on flexible spending accounts (FSAs) of $2500 (currently, there is no federal government limit).

The HSA Withdrawal Tax Hike.
This provision of Health care increases the additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent.

The AMT will ensnare over 28 million families, up from 4 million last year.

Tax Benefits for Education and Teaching Reduced.

Charitable Contributions from IRAs no longer allowed.
 

Businesses

Taxes will be raised on all types of businesses.
Small Business equipment expensing will be slashed and 50% equipment expensing will disappear.
 

U.S. Expatriates
Eve Turner, Founder & President of ETC Consulting, Inc., CPA, licensed in California & Illinois, currently located in Southern California, will be available in person in Panama City and Puerto Vallarta plus in other international locations virtually from this 2010 tax season onwards.

ETC Consulting, Inc. has been helping businesses & individuals with their tax planning & preparation for the last 25+ years.
 
Act now to prevent these tax hikes from affecting you negatively. Call Eve at 949-454-8275, email her at eve@etc-grp.com or skype her at eve.s.turner now to ask her any questions you have about this or to start your tax plan.

ETC Consulting, Inc.
41 Raven Lane
Aliso Viejo, CA 92656

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