The new numbers will go into effect for tax year 2011 and the new figures can be used on the return you file in 2012. The update to the tax code is a result of provisions of the bill passed in 2010, the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act.

Here is a look at the exact provisions:

Personal and Dependent Exemptions

In most cases personal and dependent exemptions will increase by $50.00. The new deduction amount will be $3,700.

Standard Deduction Increases

• If you are a couple and filing jointly your standard deduction will increase by $200.00 and the new total deduction amount will be $11,600.
• If you file as a single your deduction will increase by $100.00 and the new amount will be $5,800.
• If you are the head of a household your deduction will increase by $100.00 for a total deduction of $8500.
• If you are blind or a senior citizen your standard deduction will increase by $50.00 whether you are single, joint or a head of household filer. Singles total deduction will now be $1,150.00 and married and head of household’s total deduction will be $1,450.00.

Maximum Earned Income Tax Credit

For those in low income up to moderate income working families you will see an increase in your earned income credit. The maximum credit can now total up to $5,751.00 which is an $85.00 increase over the 2010 deduction. Total income to claim the earned income credit will now go up to $49,078. The total credit families receive is based on a number of factors including filing status and family size. Those families with three or more children get the highest credit.

Tax Bracket Changes

All tax brackets will be altered for 2011 filing. Tax brackets will be expanded, making tax liability less for some filers. Those filing jointly for example, will now fall into the 25% bracket when their income reaches $69,000. In 2010 the 25% bracket started at $68,000.

Modified Adjusted Income

Lifetime learning credits will now start phasing out at a higher modified adjusted gross income level. Joint filers will not begin to phase out until $102,000 and single income filers will not begin to phase out until $51,000. This is up $2,000 and $1,000 respectively.

Unchanged Areas

While the already mentioned areas will be adjusting, it is important to point out that some areas will not see any changes in 2011. Items like transportation benefits amongst others will remain at the same levels as 2010.

To find out more about how these tax changes will affect your 2011 tax return you can visit the IRS website or ask your tax advisor.

Related posts:

1. Planning For 2011 Increases In Tax Brackets
2. Social Security Can Be Taxed So How Does It Work?
3. Ways To Maximize Your Tax Refund in 2011

You Can Still File Earlier Than April 18th

Even though the tax deadline has been extended, for those who prefer not to wait until the last minute, you can of course file earlier. There is one glitch however, and that is if you itemize, you will not be able to file your return this year until sometime later in February. Due to new tax codes that were passed in late December of last year, the IRS is scrambling to update their systems and will not be ready to process certain claims until that time.

If you itemize your deductions using the1040 IRS Schedule A form you will have to wait. Additionally, any teachers who plan to deduct classroom supplies and any students and parents who will claim the Higher Education Tuitions and Fees Deduction will also have to wait. While you can prepare your returns now, the IRS has asked you to hold off on filing them until they give you the go ahead. If you are at all unsure whether or not you can file your return now or if you should wait, you can consult with a tax advisor.

Do You Qualify For Assistance?

Many people do not realize that they qualify for assistance when it comes to preparing and filing their tax return. If you, as an individual, make less than $49,000 per year you may be eligible for assistance through the Volunteer Income Tax Assistance program which offers individuals free help in preparing your tax return. Additionally, you may also be able to file electronically without paying a fee.

If you are over the age of 60 you may also qualify for tax preparation assistance through free tax counseling services as well as basic tax income preparation. This assistance is provided through the Tax Counseling for the Elderly.

Finally, there is a Free File option sponsored by the IRS that is available for anyone. It provides options for tax preparation through brand name software as well as fillable on line forms and free e-filing. Everyone is eligible to use the Free File program to prepare and file their return.

How To Check On Your Return Once It Is Filed

After you have filed your return, you will be able to check your status, just by visiting the IRS website. You will need to wait about three days after filing for the IRS to acknowledge receipt of your return. After that time it is as easy as going to the IRS website and entering some simple information like your social security number, filing status, etc.

Related posts:

1. Tax Preparers in 2011 Will Be Registered
2. H&R Block At Home 2010 Review
3. Did you Miss the October 15th Tax Filing Deadline? What to Do

Freecreditscore.com Promos Instant Experian Credit Report and Score for only $14.95!

Try Triple Advantage Credit Monitoring from FreeCreditScore.com and get a Free Experian credit report and score. By ordering your free credit report from FreeCreditScore.com, you begin your 7-day trial membership in Triple Advantage.

myFICO.com Promotional 20% off Suze Orman FICO Kit; use promo: SUZEFKP

Your credit reports score is a number that is formulated based on your credit history helping lenders evaluate your credit risk. Use myFICO.com to obtain your free FICO® score which is used to determine credit offers and interest rate. You have three FICO scores, one for each of the three credit bureaus: Experian, TransUnion, and Equifax. Get your free credit check at My FICO today.

Nationalcreditreport.com Coupon Only $9.99-No Recurring Fees. No Gimmicks!

NationalCreditReport.com coupon/promo code. Exclusives National Credit Report coupon code and promotional codes 2011 for you on webbyplanet. Save Money! Everyday new National Credit Report coupons.

Lexington Law Promos Code Legal Online Credit Repair!

If you have are having troubles repairing your credit record or have questionable credit items you want to clear up, you can find an ally in Lexington Law by Progrexion, a leading and trusted company specializing in credit repair. Drawing on its 18 strong years of experience in assisting over half a million clients in their credit repair efforts, Lexington Law by Progrexion continues to be a driving force in credit correction research and development as well as in providing quality service in helping clients take action on their credit woes.

NationalCreditReport.com Promos Code Get Free Credit Score and Report Online. See It Instantly.

Be sure to read NationalCreditReport\’s refund and cancellation policy page before you sign up. NationalCreditReport.com coupon/promo code. Exclusives National Credit Report coupon code and promotional codes 2011 for you on webbyplanet. Save Money! Everyday new National Credit Report coupons.

TrueCredit Promos Codes Free-Trial of TransUnion Credit Monitoring!

TrueCredit coupons are very similar to regular clipping coupons – they allow you to save extra money. The difference is that instead of clipping coupons you need to click on TrueCredit coupon link. These coupons are applied automatically, but for some TrueCredit coupons, in order to get the discount you will have to enter coupon code during the check out process.

LifeLock Coupon Code Stay one step ahead of identity theft. Get LifeLock from $10/month.

LifeLock promo code here to get a free month of their service as well as 10% off if you continue with their service. Get the highest level of identity protection for you and your family with LifeLock. Our identity theft protection services help protect your good name with LifeLock.com