Your adjusted gross income (AGI) is the all-important dollar amount that determines how much tax you pay the IRS. The 2011 IRS tax tables will show that the numbers have shifted a bit from last year. There are also several changes in tax code that will change your AGI.
You May Find Yourself in a Different Tax Bracket
The tax rate is the same as 2010, but the shifting in the 2011 IRS tax tables will ensure that taxes keep up with inflation. One change is in the Alternative Minimum Tax (AMT). It’s $1000 higher in 2011 than the previous year. That means more people will qualify for this exemption. Their AGI will be decreased, which means they’ll fall into a lower bracket on the tax tables. Less taxes!
Reasons You Might Move Up or Down on the Tax Tables
The standard deduction for some taxpayers has changed. For single status or married filing separately, the deduction is $5800. That’s an increase over 2010. Again, this means you can deduct more from your AGI, which means less taxes!
There are several other reasons you may move on the 2011 tax tables but they are more specific and don’t apply to everyone. For example, the standard mileage rates have changed, the self-employed health insurance deduction has changed, and so on. For details on these things that alter your spot the 2011 IRS tax tables, visit the Internal Revenue Service’s website.
