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Rev. Proc. 2011-12, 2011-2 IRB 1 (21 Dec 2010)
Part III
Administrative, Procedural, and Miscellaneous
26 CFR 601.602: Tax forms and instructions.
(Also Part I, §§ 1, 24, 25A, 32, 63, 132, 151, 221)
Rev. Proc. 2011-12
Table of Contents
SECTION 1. PURPOSE
SECTION 2. 2011 ADJUSTED ITEMS
SECTION 3. EFFECTIVE DATE
SECTION 4. DRAFTING INFORMATION
.01 Tax Rate Tables. For taxable years beginning in 2011, the tax rate tables under § 1 are as follows:
TABLE 1 - Section 1(a) - Married Individuals Filing Joint Returns and Surviving Spouses
TABLE 2 - Section 1(b) - Heads of Households
TABLE 3 - Section 1(c) - Unmarried Individuals (other than Surviving Spouses and Heads of Households)
TABLE 4 - Section 1(d) - Married Individuals Filing Separate Returns
TABLE 5 - Section 1(e) - Estates and Trusts
.02 Child Tax Credit.
For taxable years beginning in 2011, the value used in § 24(d)(1)(B)(i) to determine the amount of credit under § 24 that may be refundable is $3,000.
.03 Hope Scholarship, American Opportunity, and Lifetime Learning Credits.
(1) For taxable years beginning in 2011, the Hope Scholarship Credit under § 25A(b)(1), as increased under § 25A(i) (the American Opportunity Tax Credit), is an amount equal to 100 percent of qualified tuition and related expenses not in excess of $2,000 plus 25 percent of those expenses in excess of $2,000, but not in excess of $4,000. Accordingly, the maximum Hope Scholarship Credit allowable under § 25A(b)(1) for taxable years beginning in 2011 is $2,500.
(2) For taxable years beginning in 2011, a taxpayer's modified adjusted gross income in excess of $80,000 ($160,000 for a joint return) is used to determine the reduction under § 25A(d)(2) in the amount of the Hope Scholarship Credit otherwise allowable under § 25A(a)(1). For taxable years beginning in 2011, a taxpayer's modified adjusted gross income in excess of $51,000 ($102,000 for a joint return) is used to determine the reduction under § 25A(d)(2) in the amount of the Lifetime Learning Credit otherwise allowable under § 25A(a)(2).
.04 Earned Income Credit.
(1) In general. For taxable years beginning in 2011, the following amounts are used to determine the earned income credit under § 32(b). The "earned income amount" is the amount of earned income at or above which the maximum amount of the earned income credit is allowed. The "threshold phaseout amount" is the amount of adjusted gross income (or, if greater, earned income) above which the maximum amount of the credit begins to phase out. The "completed phaseout amount" is the amount of adjusted gross income (or, if greater, earned income) at or above which no credit is allowed. The threshold phaseout amounts and the completed phaseout amounts shown in the table below for married taxpayers filing a joint return include the increase provided in § 32(b)(3)(B)(i), as adjusted for inflation for taxable years beginning in 2011.
Number of Qualifying Children
The instructions for the Form 1040 series provide tables showing the amount of the earned income credit for each type of taxpayer.
(2) Excessive investment income. For taxable years beginning in 2011, the earned income tax credit is not allowed under § 32(i) if the aggregate amount of certain investment income exceeds $3,150.
.05 Standard Deduction.
(1) In general. For taxable years beginning in 2011, the standard deduction amounts under § 63(c)(2) are as follows:
(2) Dependent. For taxable years beginning in 2011, the standard deduction amount under § 63(c)(5) for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of (1) $950, or (2) the sum of $300 and the individual's earned income.
(3) Aged or blind. For taxable years beginning in 2011, the additional standard deduction amount under § 63(f) for the aged or the blind is $1,150. These amounts are increased to $1,450 if the individual is also unmarried and not a surviving spouse.
.06 Qualified Transportation Fringe. For taxable years beginning in 2011, the monthly limitation under § 132(f)(2)(A), regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass, and under § 132(f)(2)(B), regarding the fringe benefit exclusion amount for qualified parking, is $230.
.07 Personal Exemption.
(1) Exemption amount. For taxable years beginning in 2011, the personal exemption amount under § 151(d) is $3,700.
.08 Interest on Education Loans. For taxable years beginning in 2011, the $2,500 maximum deduction for interest paid on qualified education loans under § 221 begins to phase out under § 221(b)(2)(B) for taxpayers with modified adjusted gross income in excess of $60,000 ($120,000 for joint returns), and is completely phased out for taxpayers with modified adjusted gross income of $75,000 or more ($150,000 or more for joint returns).
This revenue procedure applies to taxable years beginning in 2011.
The principal author of this revenue procedure is Christina M. Glendening of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information regarding this revenue procedure, contact Ms. Glendening at (202) 622-4920 (not a tollfree call).
Administrative, Procedural, and Miscellaneous
26 CFR 601.602: Tax forms and instructions.
(Also Part I, §§ 1, 24, 25A, 32, 63, 132, 151, 221)
Rev. Proc. 2011-12
Table of Contents
SECTION 1. PURPOSE
SECTION 2. 2011 ADJUSTED ITEMS
Code Section | ||
.01 Tax Rate Tables | 1(a)-(e) | |
.02 Child Tax Credit | 24 | |
.03 Hope Scholarship and Lifetime Learning Credits | 25A | |
.04 Earned Income Credit | 32 | |
.05 Standard Deduction | 63 | |
.06 Qualified Transportation Fringe | 132(f) | |
.07 Personal Exemption | 151 | |
.08 Interest on Education Loans | 221 |
SECTION 3. EFFECTIVE DATE
SECTION 4. DRAFTING INFORMATION
SECTION 1. PURPOSE
This revenue procedure sets forth inflation adjusted items for 2011. Other inflation adjusted items for 2011 are in Rev. Proc. 2010-40, 2010-46 I.R.B. 663 (dated November 15, 2010).SECTION 2. 2011 ADJUSTED ITEMS
.01 Tax Rate Tables. For taxable years beginning in 2011, the tax rate tables under § 1 are as follows:
TABLE 1 - Section 1(a) - Married Individuals Filing Joint Returns and Surviving Spouses
If Taxable Income Is: | The Tax Is: | |
Not over $17,000 | 10% of the taxable income | |
Over $17,000 but not over $69,000 | $1,700 plus 15% of the excess over $17,000 |
|
Over $69,000 but not over $139,350 | $9,500 plus 25% of the excess over $69,000 |
|
Over $139,350 but not over $212,300 | $27,087.50 plus 28% of the excess over $139,350 |
|
Over $212,300 but not over $379,150 | $47,513.50 plus 33% of the excess over $212,300 |
|
Over $379,150 | $102,574 plus 35% of the excess over $379,150 |
TABLE 2 - Section 1(b) - Heads of Households
If Taxable Income Is: | The Tax Is: | |
Not over $12,150 | 10% of the taxable income | |
Over $12,150 but not over $46,250 | $1,215 plus 15% of the excess over $12,150 |
|
Over $46,250 but not over $119,400 | $6,330 plus 25% of the excess over $46,250 |
|
Over $119,400 but not over $193,350 | $24,617.50 plus 28% of the excess over $119,400 |
|
Over $193,350 but not over $379,150 | $45,323.50 plus 33% of the excess over $193,350 |
|
Over $379,150 | $106,637.50 plus 35% of the excess over $379,150 |
TABLE 3 - Section 1(c) - Unmarried Individuals (other than Surviving Spouses and Heads of Households)
If Taxable Income Is: | The Tax Is: | |
Not over $8,500 | 10% of the taxable income | |
Over $8,500 but not over $34,500 | $850 plus 15% of the excess over $8,500 |
|
Over $34,500 but not over $83,600 | $4,750 plus 25% of the excess over $34,500 |
|
Over $83,600 but not over $174,400 | $17,025 plus 28% of the excess over $83,600 |
|
Over $174,400 but not over $379,150 | $42,449 plus 33% of the excess over $174,400 |
|
Over $379,150 | $110,016.50 plus 35% of the excess over $379,150 |
TABLE 4 - Section 1(d) - Married Individuals Filing Separate Returns
If Taxable Income Is: | The Tax Is: | |
Not over $8,500 | 10% of the taxable income | |
Over $8,500 but not over $34,500 | $850 plus 15% of the excess over $8,500 |
|
Over $34,500 but not over $69,675 | $4,750 plus 25% of the excess over $34,500 |
|
Over $69,675 but not over $106,150 | $13,543.75 plus 28% of the excess over $69,675 |
|
Over $106,150 but not over $189,575 | $23,756.75 plus 33% of the excess over $106,150 |
|
Over $189,575 | $51,287 plus 35% of the excess over $189,575 |
TABLE 5 - Section 1(e) - Estates and Trusts
If Taxable Income Is: | The Tax Is: | |
Not over $2,300 | 15% of the taxable income | |
Over $2,300 but not over $5,450 | $345 plus 25% of the excess over $2,300 |
|
Over $5,450 but not over $8,300 | $1,132.50 plus 28% of the excess over $5,450 |
|
Over $8,300 but not over $11,350 | $1,930.50 plus 33% of the excess over $8,300 |
|
Over $11,350 | $2,937 plus 35% of the excess over $11,350 |
.02 Child Tax Credit.
For taxable years beginning in 2011, the value used in § 24(d)(1)(B)(i) to determine the amount of credit under § 24 that may be refundable is $3,000.
.03 Hope Scholarship, American Opportunity, and Lifetime Learning Credits.
(1) For taxable years beginning in 2011, the Hope Scholarship Credit under § 25A(b)(1), as increased under § 25A(i) (the American Opportunity Tax Credit), is an amount equal to 100 percent of qualified tuition and related expenses not in excess of $2,000 plus 25 percent of those expenses in excess of $2,000, but not in excess of $4,000. Accordingly, the maximum Hope Scholarship Credit allowable under § 25A(b)(1) for taxable years beginning in 2011 is $2,500.
(2) For taxable years beginning in 2011, a taxpayer's modified adjusted gross income in excess of $80,000 ($160,000 for a joint return) is used to determine the reduction under § 25A(d)(2) in the amount of the Hope Scholarship Credit otherwise allowable under § 25A(a)(1). For taxable years beginning in 2011, a taxpayer's modified adjusted gross income in excess of $51,000 ($102,000 for a joint return) is used to determine the reduction under § 25A(d)(2) in the amount of the Lifetime Learning Credit otherwise allowable under § 25A(a)(2).
.04 Earned Income Credit.
(1) In general. For taxable years beginning in 2011, the following amounts are used to determine the earned income credit under § 32(b). The "earned income amount" is the amount of earned income at or above which the maximum amount of the earned income credit is allowed. The "threshold phaseout amount" is the amount of adjusted gross income (or, if greater, earned income) above which the maximum amount of the credit begins to phase out. The "completed phaseout amount" is the amount of adjusted gross income (or, if greater, earned income) at or above which no credit is allowed. The threshold phaseout amounts and the completed phaseout amounts shown in the table below for married taxpayers filing a joint return include the increase provided in § 32(b)(3)(B)(i), as adjusted for inflation for taxable years beginning in 2011.
Number of Qualifying Children
Item | One | Two | Three or More | None |
Earned Income Amount | $9,100 | $12,780 | $12,780 | $6,070 |
Maximum Amount of Credit | $3,094 | $5,112 | $5,751 | $464 |
Threshold Phaseout Amount (Single, Surviving Spouse, or Head of Household) | $16,690 | $16,690 | $16,690 | $7,590 |
Completed Phaseout Amount (Single, Surviving Spouse, or Head of Household) | $36,052 | $40,964 | $43,998 | $13,660 |
Threshold Phaseout Amount (Married Filing Jointly) | $21,770 | $21,770 | $21,770 | $12,670 |
Completed Phaseout Amount (Married Filing Jointly) | $41,132 | $46,044 | $49,078 | $18,740 |
(2) Excessive investment income. For taxable years beginning in 2011, the earned income tax credit is not allowed under § 32(i) if the aggregate amount of certain investment income exceeds $3,150.
.05 Standard Deduction.
(1) In general. For taxable years beginning in 2011, the standard deduction amounts under § 63(c)(2) are as follows:
Filing Status | Standard Deduction |
Married Individuals Filing Joint Returns and Surviving Spouses (§ 1(a)) | $11,600 |
Heads of Households (§ 1(b)) | $8,500 |
Unmarried Individuals (other than Surviving Spouses and Heads of Households) (§ 1(c)) | $5,800 |
Married Individuals Filing Separate Returns (§ 1(d)) | $5,800 |
(2) Dependent. For taxable years beginning in 2011, the standard deduction amount under § 63(c)(5) for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of (1) $950, or (2) the sum of $300 and the individual's earned income.
(3) Aged or blind. For taxable years beginning in 2011, the additional standard deduction amount under § 63(f) for the aged or the blind is $1,150. These amounts are increased to $1,450 if the individual is also unmarried and not a surviving spouse.
.06 Qualified Transportation Fringe. For taxable years beginning in 2011, the monthly limitation under § 132(f)(2)(A), regarding the aggregate fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass, and under § 132(f)(2)(B), regarding the fringe benefit exclusion amount for qualified parking, is $230.
.07 Personal Exemption.
(1) Exemption amount. For taxable years beginning in 2011, the personal exemption amount under § 151(d) is $3,700.
.08 Interest on Education Loans. For taxable years beginning in 2011, the $2,500 maximum deduction for interest paid on qualified education loans under § 221 begins to phase out under § 221(b)(2)(B) for taxpayers with modified adjusted gross income in excess of $60,000 ($120,000 for joint returns), and is completely phased out for taxpayers with modified adjusted gross income of $75,000 or more ($150,000 or more for joint returns).
SECTION 3. EFFECTIVE DATE
This revenue procedure applies to taxable years beginning in 2011.
SECTION 4. DRAFTING INFORMATION
The principal author of this revenue procedure is Christina M. Glendening of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information regarding this revenue procedure, contact Ms. Glendening at (202) 622-4920 (not a tollfree call).
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