McDonnell: Over 2 Million Taxpayers Can Prepare, File Taxes Free

From Governor McDonnell’s Office:  Gov. McDonnell announced Tuesday that more than 2 million low- and moderate-income Virginia taxpayers the opportunity to prepare and electronically file their 2011 federal and state income tax returns for free this tax season.   VA Free File is modeled after the highly successful Internal Revenue Service Free File program used by millions …

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The Commerce File

As some of you will have noticed, the Daily Journal has taken a step forward in the digital universe into the “Twitterverse.” We’ve also stepped up our interactions on our Facebook wall – and we encourage you all to go to the wall and “like” us (please don’t “friend” us on the home page, go …

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Huntington-area residents to get volunteer help with taxes   – News – The Charleston Gazette – West Virginia News and Sports -

February 20, 2012 Huntington-area residents to get volunteer help with taxes Advertiser HUNTINGTON, W.Va. — Huntington-area residents can get free help with filing their income-tax forms from volunteers making several stops across the area this month. The One Economy's MyFreeTaxes.com van is a program of the Financial Stability Partnership of the River Cities. The van …

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Gonzaga Giving · Will 2012 Taxes Affect You?

While your estate is exempt from estate taxes if it is worth less than $5.12 million this year, change is not far off. Come 2013, if Congress doesn’t make additional changes, this amount drops to $1 million. That means, for every dollar you own above the $1 million exemption, it will be subject to federal …

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Government Extends FBAR Filing Time

Robert W. Wood is a prominent tax lawyer with a national practice. A partner with Wood LLP (WoodLLP.com), he is admitted to practice law in California, New York, the District of Columbia, Texas, Montana, Arizona, Washington and Wyoming. He is Certified as a Specialist in Taxation and Qualified as a Solicitor in England. Named among …

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McDonnell: Over 2 Million Taxpayers Can Prepare, File Taxes FreeThe Commerce FileHuntington-area residents to get volunteer help with taxes   – News – The Charleston Gazette – West Virginia News and Sports -Gonzaga Giving · Will 2012 Taxes Affect You?Government Extends FBAR Filing Time

Feb
22

Bill would tax off-site wagering on Kentucky horse races

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1329910287 73 Bill would tax off site wagering on Kentucky horse races

FRANKFORT — A measure that would tax bets on horse races made online or on the phone passed the House budget committee on Tuesday.

House Bill 229 would allow a tax of 0.05 percent on bets made through advanced-deposit wagering sites by Kentucky bettors. From that 0.05 percent, about 15 percent would go back to the state’s general fund, and about 85 percent would go to racetracks. The tracks would have to use 50 percent of their share to pump up purses for Kentucky horse races.

The bill’s sponsor, Democratic Rep. Larry Clark of Louisville, said the measure would allow the state to get a glimpse of how much money is wagered through online or phone wagering systems. A legislative analysis estimated that the state would receive a little less than $50,000 a year, but no solid figures exist.

Bets placed in person at Keeneland or Churchill Downs are taxed. But when people wager online or through mobile devices at a racetrack, the bet is not taxed, and no money goes to the Kentucky Thoroughbred Development Fund, which is used to increase race purses.

Rep. David Osborne, R-Prospect, a horse owner, told the House Appropriations and Revenue Committee that advanced-deposit wagering is now the fastest-growing segment of horse track wagering. But overall, wagering on horse races is down.

Churchill Downs recently invested $86 million in a call center for advanced-deposit wagering and now employs 130 people. Clark said Churchill Downs does not oppose the bill.

The House panel unanimously approved the bill on Tuesday. It will now go to the full House for a vote, where it will likely pass.

The Senate has approved similar legislation in the past, but the two sides have not been able to iron out differences between the two measures. Clark said Tuesday that he believes the House and Senate will work out their differences this legislative session.

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Feb
22

The Basics of Income Taxes

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1329909070 58 The Basics of Income Taxes

Every year around this time we at Financial Finesse see an increase in demand for our Tax Basics workshop.  The thing about our Tax Basics workshop is that it is exactly what it says it is—basic.  We don’t discuss tax theory.  We don’t attempt to understand the alternative minimum tax.  Instead we focus on the tax concepts that affect the majority of taxpayers across the U.S.  Understanding things like tax credits, exemptions, and deductions is critical to making sure you don’t end up on an H&R Block commercial finding out that you “voluntarily” let the government have over $8,000 because you didn’t know the tax benefits of education (in case you are interested, see IRS publication 970, Tax Benefits for Education).

I’m not sure why there is such mystique around personal income taxes.  Maybe it’s because no one ever taught us this stuff in school.  Perhaps it’s because of the sheer size of the tax code (71,684 pages according to this website).  Whatever the reason, we’ve got to get over it.  “Tax basics” is not an oxymoron.

I’m not saying there isn’t a need for tax preparers, enrolled agents, or CPAs.  I’m just suggesting that for most taxpayers their federal (and in many cases, state) income taxes may not be as complicated as they may seem.  If you have never prepared your own taxes, either by hand or with the help of software, I challenge you to give it a try.  You may discover a whole new appreciation for our tax code.

Here are some simple steps to get you started on preparing your 2011 federal tax return:

Step 1: Gather your tax papers

Before you tackle the 1040, make sure you gather all of the paperwork and tax forms you will need.  W-2’s, 1099s, and 1098s are just some of the more common tax forms that are mailed to you at the beginning of the year letting you know what information has been reported to the IRS. Payroll information like W-2s and 1099s (if you’re an independent contractor) should be received sometime before the end of January, so if you haven’t gotten anything by then, give your payroll department a call. For help knowing what tax forms you may need, check out this tax preparation checklist: tax.yahoo.com/checklist.html. If you prefer using software, here is a comparison of some of the major products: tax-software-review.toptenreviews.com/

Step 2: Prepare your return

Once you’ve gathered all of the appropriate documents, it’s time to start preparing your return.  The most common federal income tax form is the 1040, but for less complicated returns there is the 1040A and the 1040EZ.  If you’re not sure which form to use, the IRS offers guidelines on their website: irs.gov/newsroom/article/0,,id=251988,00.html.

Step 3: Have a tax preparer review your filing (optional)

Since this may be the first time you have attempted to file your own return, you may be a little nervous.  That’s okay.  If it would make you feel better, have a tax professional review your return.  There are several advantages to doing this.  For starters, you may have a lot of questions your tax preparer can answer for you.  Also, since you may have done a bulk of the work in preparing the return, you preparer may not have to charge as much for simply “reviewing” your return. Another advantage is peace of mind. For tips on choosing a tax return preparer, visit irs.gov/newsroom/article/0,,id=251962,00.html

Step 4: File your return (not optional)

Whether or not you have a preparer review your return, you must file your 2011 return no later than April 17th, 2012. If you have it reviewed by a preparer, your preparer may offer to file it for you as part of their services, but there may be a fee involved.  Under the IRS Free File Program, ALL taxpayers are eligible to file electronically for free.  In addition, taxpayers with less than $57,000 in adjusted gross income may use Free File software which can save you even more.

I realize that this only scratches the surface, but for many taxpayers the surface is the most they’ll ever need to scratch.  As I said earlier, there is plenty of work for tax professionals, and depending on the complexity of your personal situation, their services may be very valuable, but you may never know how valuable until you give it a try on your own. Remember, there are a ton of resources out there to help you, including the IRS website, so visit irs.gov/newsroom/content/0,,id=104608,00.html for additional tax tips, and find out for yourself how “basic” taxes can really be.

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Paying tax to the government has grown to be extremely easier with the use of internet. That's fun. The conclusion is that if the corporation is basically bankrupt, worthless, not carrying on business, is expected to close down, etc. What is my reason for this? Oooo, look at the bright colors. However, there are special rules for reclaiming VAT on road fuel used for business purposes. Business property usually must be depreciated over a six year time period, so you would only deduct a portion of the item per year for six years. Why are you here? This is a new approach to online tax return. But the shop owners have to follow some rules. And does this tax money get claimed as income and then expensed as a deduction? Estate tax on income in respect of a decedent. Where can late arrivals seize striking irs.gov tricks? It is the untold story of irs refund. When income tax debt is owed, it is a demand debt and the Canada Revenue Agency will demand to be paid in full. If it happened that you left your job before the year was over, you need to understand the fact that you will be given a form P45. An unprofessional accountancy group can create troubles which can lead to the wastage of two important resources of the company and they are time and money. You could start looking for those relevant documents now and start looking at some related forms. A group of foreign companies is taxed differently on its activities in different countries. Leading software products such as TurboTax or H&R Blocks At Home are fairly easy to use and light on the pocketbook. It was during the 1950's that tax became quite mainstream although indisputably, I'm not giving up.

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Feb
22

Online tax returns up 10% in 2011

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1329907900 74 Online tax returns up 10% in 2011

MORE THAN seven million people have filed tax returns online so far this year – an increase of around 10% from a year ago.

A spokesman for HM Revenue and Customs (HMRC) said it had received 7,002,748 tax returns online by 30 January, compared to 6,334,956 a year earlier. Nearly 400,000 people filed tax returns yesterday.

The normal deadline for submitting tax returns is 31 January, but the taxman has said it will not fine anyone submitting tax returns on 1 or 2 February because of a strike today by HMRC call-centre workers.

Last year around 600,000 people filed tax returns on deadline day, but a shortage of call-centre staff to deal with taxpayer questions today will mean the number this year is expected to be much lower.

Common mistakes made by taxpayers when filing tax returns online include mistaking the HMRC web page calculating tax due for the year for confirmation that the tax return has been submitted, and using punctuation or pressing the “return” key when entering information about their pension provider, which causes an error message, HMRC said.

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Feb
22

TurboTax Business Federal + E-file 2011[Download]

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1329906689 33 TurboTax Business Federal + E file 2011[Download]66 of 73 people found the following review helpful: Serious enough defects to warrant looking at another software package, December 21, 2011 This review is from: TurboTax Business Federal + E-file 2011[Download] (Software Download)

I have been using TurboTax for Business for many years for my company’s annual tax returns. Each year brings a new adventure with usually small glitches here and there that I’m able to work around. This year, however, the defects are more serious and are more difficult to work around. This wouldn’t be such a problem except that although Intuit provides plenty of discussion groups and support for completing the forms, it doesn’t make it easy to report program errors.

I have experienced 2 program errors so far with TurboTax for Business 2011. The first is the installation program immediately crashes every time I initiate installation on my main computer, which is running MS Windows XP SP3. I have made sure the computer has no viruses and is up-to-date with all patches. Fortunately, it doesn’t crash on a notebook computer that I have and so I’m using that to work on the taxes. I can see on their website that Intuit knows about this defect.

The second is there are areas where the program runs very slowly. For example, when entering a new asset, it takes minutes to go from one screen to the next. I enter the name of the new asset and the date it was put into service, click on the Continue button, go off and do something else for 5 to 10 minutes while the program displays a calculating message, come back, enter the next bit of information, click on the Continue button, go off and do something else for 5 to 10 minutes again while the program displays a calculating message, and so on until I finally return to the list of assets screen. At this rate, it’s going to take hours to enter the new assets my company has.

I recommend that if you don’t have a lot of history with TurboTax for Business, look for a software package that is better supported. I understand that defects happen and am happy to work around them. However, Intuit seems to have insulated itself from its customers to the point where we cannot let them know about these sorts of issues, which makes it a lot less likely they will be fixed.

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Feb
22

Gin up a free federal tax return

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1329905499 89 Gin up a free federal tax return

Just because you have to pay taxes doesn’t mean you have to pay for the privilege of coughing up your hard-earned dough to Uncle Sam. Thanks to our Internal Revenue Service pals, anyone making less than $57,000 a year can file for free.

If you’re really beat for bread, you can get all kinds of free tax help in addition to online filing. If all else fails, you can file the old-fashioned way: sitting down with a box of pencils, a stack of papers and a full bottle of good gin.

On Saturday, for example, the men and women of the U.S. Navy (active and reserve) can get free tax help from the members of the Michigan Association of Certified Public Accountants from 8:30 a.m. to 2p.m. at Selfridge Air National Guard Base

So committed are the state’s CPAs to aiding our servicemen and women that I bet, at this very moment, they’ve spread out to hit restroom walls across Metro Detroit and scrawl, “Hey, sailor — looking for a good (tax) time? Call (248) 267-3717 for an appointment! Ask for Lindsay!”

More free help

Now, if a soldier or airman wants to stop by, the CPAs will still be glad to help, but what about the rest of us? Well, first, there’s the IRS Free File service, which lets you choose from 14 online tax preparers. The cutoff for free e-filing is a gross adjusted income of $57,000 (which means your actual income is higher). That covers 70 percent of taxpayers, according to the IRS. If you make more than that, you can fill out the online forms and file them, but you won’t get step-by-step guidance.

People who make $50,000 or less can get more free help from the IRS Volunteer Income Tax Assistanceprogram (call 800-906-9887) and older taxpayers can tap Tax Counseling for the Elderly, which the IRS runs with AARP (call 888-227-7669or search at aarp.org).

Half a bottle for next year

Another place to get tax help is from the very, very helpful folks at the Accounting Aid Society of Detroit. The society offers help to families with household income up to $50,000 and individuals up to $25,000 in locations all across Metro Detroit, not just in the city. Call (866) 673-0873 to make an appointment or go to accountingaidsociety.org.

The reason for getting tax help is to avoid missing out on valuable deductions, such as the Earned Income Tax Credit.

This leaves the problem of wrangling your state income tax return, which doesn’t offer a free electronic version — but then, the paper version is quite a bit less daunting than a federal return. Most years that one only takes half a bottle of gin.

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Feb
22

Choosing Your Income Tax Preparer

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1329904304 78 Choosing Your Income Tax Preparer

New paid preparer regulations which include registration with the IRS, testing by the IRS and continuing education will affect 350,000 paid income tax return preparers beginning in 2012.  Previously there were no minimum education requirements, no testing, and no continuing education requirements for someone to prepare income tax returns for a fee.

Effective 1/1/12, individuals preparing income tax returns for compensation must obtain a PTIN (Preparer Tax Identification Number) from the IRS.  In order to obtain a PTIN the individual preparing the returns must be an attorney, a certified public accountant, and IRS enrolled agent, or must be someone supervised by one of these professionals.  Otherwise the preparer will be required to pass a competency test developed and administered by the IRS and must take continuing education courses annually in order to renew their PTIN with the IRS.

If you pay someone to prepare your tax return, the IRS urges you to choose that preparer wisely. Taxpayers are legally responsible for what’s on their tax return even if it is prepared by someone else. So, it is important to choose carefully when hiring an individual or firm to prepare your return.

This year, the IRS wants to remind all taxpayers that they should use only preparers who sign the returns they prepare and enter their Preparer Tax Identification Numbers (PTINs).

Here are a few points to keep in mind when someone else prepares your return:

  • Check the person’s qualifications. In addition to making sure they have a PTIN, ask if the preparer is affiliated with a professional organization and attends continuing education classes.
  • Check the preparer’s history. Check to see if the preparer has a questionable history with the Better Business Bureau and check for any disciplinary actions and licensure status through the state boards of accountancy for certified public accountants; the state bar associations for attorneys; and the IRS Office of Enrollment for enrolled agents.
  • Find out about their service fees. Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers. Under no circumstances should all or part of your refund be directly deposited into a preparer’s bank account.
  • Ask if they offer  electronic filing. Any paid preparer who prepares and files more  than 10 returns for clients must file the returns electronically, unless the client opts to file a paper return.
  • Make sure the tax preparer is accessible. Make sure you will be able to contact the tax preparer after the return has been filed, even after the April due date, in case questions arise.
  • Provide all records and receipts needed to prepare your return. Reputable preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions and other items.
  • Never sign a blank return. Avoid tax preparers that ask you to sign a blank tax form.
  • Review the entire return before signing it. Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.
  • Make sure the preparer signs the form and includes his or her preparer tax identification number (PTIN). A paid preparer must sign the return and include his or her PTIN as required by law. Although the preparer signs the return, you are responsible for the accuracy of every item on your return. The preparer must also give you a copy of the return.

    Robert W. Askey, CPA, CFE, CFFA

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Feb
22

» Does Your Child Need to File a Tax Return?

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1329903083 55 » Does Your Child Need to File a Tax Return?

Children have always been able to earn some of their own money. And, of course, since the IRS wants to make sure that all income is reported — and proper taxes are paid — it is important to understand your kids might need to pay taxes.

At any rate, even if your child doesn’t have to pay taxes, he or she may have to file a tax return. If your child has earned income, or if your child has earned interest and dividends from investments you made for them, you might need to file a tax return for your child.

Determining whether or not your child should file a tax return is based on his or her income, rather than his or her age or tax bracket. As with other income-related issues related to taxes, the income requirements change based on inflation. For 2011 (the tax return filed in April of 2012), your child needs to file a tax return if any of the following apply:

  • Dividend and interest income that exceeds $950
  • Earned income more than $5,800
  • Self employment income exceeding $400 (just like adult self employment income)
  • Total of earned and unearned income equals the greater of $950 or earned income plus $300

Keep track of your child’s income; it is likely to be reported on various forms, but it helps if you have your own records. Remember, too, that if you decide to pay wages to your child that this can count as income for him or her.

You can file your child’s tax return one of two ways: With your tax return, or separately.

As long as your child’s income is less than $9,500, and solely from dividends and interest, it can be reported as part of your tax return. Your child must be under 19, or a full-time student under the age of 24 for this rule to apply. Your child’s income is reported on Form 8814. However, you should understand that if you report your child’s income this way, it will be added to your dividend and interest income, and can result in higher capital gains taxes.

If your child has earned income or self employed income, though, he or she is required to file a separate tax return. If the income is higher than $9,500, and if your child doesn’t fall within an age limit, a separate return needs to be filed. Even if your child qualifies to file as part of your tax return, you can still choose to file a separate one — especially if you are concerned that your taxes could increase because of it.

What is known as the kiddie tax applies to unearned income. The first $950 of your child’s income is untaxed. The next $950 is taxed at the child rate of 10%. Once your gets beyond $1,900, though, that money is taxed at your marginal tax rate. It’s important to understand how this works so that you can work out how to best arrange your finances — and your child’s finances — to improve your tax efficiency.

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Feb
22

The Benefits of Using Online Tax Software – 2009 Taxes – Free Tax Filing Options

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1329901868 79 The Benefits of Using Online Tax Software – 2009 Taxes Free Tax Filing Options

It’s the start of a new year, and that means it’s time to do last year’s taxes. Are you going to do them yourself, or will you hire a tax professional to do them for you? If you’d prefer to prepare your own tax return, you might want to use an online program to help you. There are lots of different programs available, such as TurboTax and H&R Block. All will help you complete your federal and state tax returns from the comfort of your own home. There are many benefits to using online tax software, and here’s a closer look at some of them.

ConvenienceWhen using online tax software, all you have to do is log on to your computer. It makes it incredibly convenient for you to complete your taxes whenever is best for you, without relying on the schedule of a tax professional you might hire. Also, completing your taxes online means you don’t need to fill out long paper forms by hand. It’s incredibly easy to type in your numbers, so you don’t have to go out and pick up lots of forms, or waste ink and paper printing them out yourself. Doing your taxes online will streamline the process and cut back on your paperwork.

AccuracyPreparing your taxes involves a lot of math, and when you do them by hand there’s a lot of room for error. Online tax software will figure out all the calculations for you, and it will almost completely eliminate the possibility of mathematical errors. Making an error could cause a delay or an audit, so you want to get it right the first time. Online software will perform and check the math for you.

E-FilingWhen you e-file your tax returns, you can confirm that they’ve been received by the IRS within 48 hours. Online software will help you e-file automatically, and this makes the process even easier. You don’t have to buy postage or worry about your paperwork getting delivered. E-filing will also help you get your refund sooner.

SupportJust because you’re doing your taxes at home doesn’t mean you’re on your own. When you purchase online tax software, many programs offer you support from certified tax professionals. You may have to pay a little extra, but if you’re unsure of something, at least you know you have some back up when you need it. Also, software programs will help you through the process by offering step-by-step instructions and definitions of terms. They’ll suggest ways you can maximize your refund or clue you in to additional deductions that you may qualify for.

CostPreparing your taxes by yourself with online software can help you save a lot. Purchasing the software will cost a lot less than hiring a tax professional such as an enrolled agent or a certified public accountant. Paying less will help you maximize the net amount of your refund. If you have a very simple federal return, many programs will even let you prepare it for free.

Terry Ford shares tips for saving money and being fiscally secure. She uses the world’s best grammar checker to keep her writing easy for her fans to understand.

Related articles

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Feb
22

Returns Show Santorum Paid 28 Percent Tax Rate

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1329900668 72 Returns Show Santorum Paid 28 Percent Tax Rate

11:34 p.m. | Updated Rick Santorum released four years of his tax returns on Wednesday, showing that his income had increased steadily before dipping slightly in 2010.

Mr. Santorum released returns for the years 2007 to 2010 — more than his Republican rivalsMitt Romney andNewt Gingrich have done. The returns show adjusted gross income for Mr. Santorum and his wife, Karen, of about $659,000 in 2007, an increase to $952,000 in 2008, another jump to $1.1 million in 2009 and a small dip to $923,000 in 2010.

The Santorums paid an effective tax rate of 28 percent for all four years. Returns for Mr. Romney showed that his rate was 14 percent for 2010; Mr. Gingrich paid a rate of 31 percent in 2010.

The returns were first reported on Wednesday night by the Web site Politico.

Mr. Santorum released the documents as the newest Quinnipiac University poll showed him leading in the Ohio primary, which takes place in three weeks.

Mr. Santorum has the support of 36 percent of likely Republican primary voters, trailed by Mitt Romney, with 29 percent. Newt Gingrich follows at 20 percent, andRon Paul has 9 percent.

And national polls, including a New York Times/CBS News survey, showed Mr. Santorum closing in on Mr. Romney over all. The candidates are now battling in Michigan, where Mr. Romney’s father was governor.

Michigan and Arizona hold primaries on Feb. 28. Ohio and several other states follow on Super Tuesday, March 6.

In Ohio, Mr. Santorum’s backing comes from key groups of Republican voters, including white evangelical Christians, Tea Party supporters and conservatives. He is backed by 4 in 10 voters from each of those groups.

Mr. Romney has the support of about a quarter of conservatives and evangelicals, but only 1 in 5 Tea Party supporters. Mr. Romney derives much of his support from moderates, voters over 65 and people with higher incomes.

Among all registered voters in Ohio, Mr. Romney’s unfavorable ratings have grown: 4 in 10 have an unfavorable view of him, up from 34 percent last month. Thirty-seven percent have a favorable opinion of Mr. Romney, about the same as for Mr. Santorum.

However, more than 4 in 10 Ohio voters say they have not heard enough about Mr. Santorum to form an opinion.

The Quinnipiac poll was based on telephone interviews conducted Feb. 7 through Sunday among 1,421 registered voters in Ohio, including 553 likely Republican primary voters. The margin of sampling error for all registered voters is plus or minus three percentage points, and is plus or minus four percentage points for likely primary voters.

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Feb
22

Tax Law Changes for 2011 Federal Tax Returns 

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1329899488 82 Tax Law Changes for 2011 Federal Tax Returns 

Before you file your 2011 federal income tax return in 2012, you should be aware of a few important tax changes that took effect in 2011. Check IRS.gov before you file for updates on any new legislation that may affect your tax return.

Due date of return. File your federal tax return by April 17, 2012. The due date is April 17, instead of April 15, because April 15 is a Sunday and April 16 is the Emancipation Day holiday in the District of Columbia.

New forms. In most cases, you must report your capital gains and losses on the new Form 8949, Sales and Other Dispositions of Capital Assets. Then, you report certain totals from that form on Schedule D (Form 1040). If you had foreign financial assets in 2011, you may have to file the new Form 8938, Statement of Foreign Financial Assets, with your return.

Standard mileage rates. The 2011 rates for mileage are different for January 1 through June 30 than for July 1 through December 31. For business use of your car, you can deduct 51 cents a mile for miles driven the first half of the year and 55 ½ cents for the second half. Medical and moving mileage are both 19 cents per mile for the early half of the year and 23 ½ cents in the latter half.

Standard deduction and exemptions increased.

The standard deduction increased for some taxpayers who do not itemize deductions on IRS Schedule A (Form 1040). The amount depends on your filing status. The amount you can deduct for each exemption has increased $50 to $3,700 for 2011.

Self-employed health insurance deduction. This deduction is no longer allowed on Schedule SE (Form 1040), but you can still take it on Form 1040, line 29.

Alternative minimum tax (AMT) exemption amount increased. The AMT exemption amount has increased to $48,450 ($74,450 if married filing jointly or a qualifying widow(er); $37,225 if married filing separately).

Health savings accounts (HSAs) and Archer MSAs. The additional tax on distributions from HSAs and Archer MSAs not used for qualified medical expenses increased to 20 percent. Beginning in 2011, only prescribed drugs or insulin are qualified medical expenses.

Roth IRAs. If you converted or rolled over an amount from a traditional IRA to a Roth IRA or designated Roth in 2010 and did not elect to report the taxable amount on your 2010 return, you generally must report half of it on your 2011 return and the rest on your 2012 return.

Alternative motor vehicle credit. You can claim the alternative motor vehicle credit for a 2011 purchase only if the vehicle is a new fuel cell motor vehicle.

First-time homebuyer credit. The credit expired for most taxpayers for 2011. Some military personnel and members of the intelligence community can still claim the credit in 2011 for qualified purchases.

Health coverage tax credit.Recent legislation changed the amount of this credit, which pays qualified health insurance premiums for eligible individuals and their families. Participants who received the 65 percent tax credit in any month from March to December 2011 may claim an additional 7.5 percent retroactive credit when they file their 2011 tax return.

Mailing a return. The IRS changed the filing location for several areas. If you’re mailing a paper return, see the Form 1040 instructions for the correct address. Detailed information on these changes can be found on the IRS website – irs.gov.

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