Turbo Tax 2011 and Tax Changes
With TurboTax 2011 you'll be ready for all the Tax Changes Coming in 2011.
Tax changes are in store for businesses and individuals alike.
Congress is certain to
put in place tax increases for singles making more than $200,000
a year and married couples over $250,000 a year. Most likely more lower
income households will follow since our budget has reached it's unbearable
level.
Higher taxes will be a necessary part of any overhaul designed to simplify the tax
code and lower the deficit. The legislation
will have cuts as well as hikes, though more of the latter.
Intuit TurboTax 2011 will be
ready for the increases, assuming
the economy is growing steadily at that time. Reducing the deficit will become
the top priority since sustaining it over the long term will drag our
recovery out for decades.
Probable tax change hikes include:
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Boosting top marginal rates from 33% and 35% to 36% and 39.6.
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temized deduction caps for top earners. Some way of controlling tax breaks is likely by 2011.
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Easing for the alternative minimum tax (ATM), Businesses can expect hikes and cuts in the shake up, but with a higher final tax bill in the end.
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Higher capital gains rates and dividends for those in the top tax brackets will probably be around a 20% rate hike.
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Higher SECA taxes will most likely be put in place for owners of S firms and partnerships by eliminating the ability to take compensation as dividends instead of salary.
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Higher restrictions on worker classifications for firms that treat workers as contractors who really fall into the employee category.
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Elimination of tax breaks for big corporations, like the deduction for domestic production, accelerated depreciation and incentives for foreign income and oil production.
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Estate taxes changes for 2011 may include an exemption of $3.5 to $5 million if the Senate gets it together. This legislation could include spousal transfers, making the exemption $7 million or more for couples. Fortunately the estate tax rate will most likely still be capped at 45%, as it is now.
Fortunately, to help stimulate
the economy Congress
will consider lowering the 35% top corporate tax rate in order to help
stimulate job growth.
There's no doubt though that the
Turbo Tax 2011 Tax Editions will
need to be ready to help prepare for longer term tax hikes that will include more people and
businesses.
Other options on the table are deep cuts in spending, including Social Security, Medicare and Military Defense spending.
Changes could include lumping together income, excise, payroll and other taxes, where the average estimated rate today is 21¢ on every dollar of income. For the top 20% of taxpayers, the average rate is higher at 26¢.
All in all it's always a challenge to stay ahead, making sure you can take advantage of any breaks that are available. Rest assured Intuit TurboTax 2011 Software Editions will be there ready to help ensure you still get the biggest refund possible!
