Happy New Tax Year

The New Year is here. And so are changes to IRS rules. These are 2012 laws, so won't be realized until filing the 2012 return in 2013. Of course preparing for current year taxes is important so these changes should be noted now as tax planning is always a worthy endeavor, if not painstakingly drab.

Due to inflation adjustments

• $100 increase to each personal and dependent exemption to $3800
• $300 increase to $11,900 for standard deduction for married couples filing a joint return. $150 increase to $5,950 for singles and married individuals filing separately. $200 increase to $8,700 for heads of household.
• Tax bracket threshold increases. For example if married and filing jointly the "line in the sand" from the 15-percent bracket to the 25-percent bracket is $70,700, increased from $69,000 last year.
• Estate tax exemption increase of $120,000 to $5,120,000.

One item that is changing:

• Annual gift exclusion remains at $13,000.

Ok, that's about all the tax details I can muster. There's better ways to welcome the New Year than dig up tax details..

Are you planning on any tax-related changes this year? Any expected life changes to consider?