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What You Need to KnowAbout the New Rules

2011 Tax Guide

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Tax Guide

2011

This guide is not intended to be tax advice and should not be treated as such. Each individual’s tax situation is different. You should contact your tax professional to discuss your personal situation.

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Tax Guide

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QUICK REFERENCE

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Introduction

The 2010 Tax Relief Act: A Summary

Income Tax Rates

Dividends and Capital Gains

Payroll Taxes

The Alternative Minimum Tax

IRAs and Employer-Sponsored Retirement Plans

Education Tax Breaks

Estate and Gift Taxes

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As a result of the legislation, existing rates on ordinary income, ranging from 10% to a high of 35%, will remain in effect through 2012. Each tax rate indicated below applies to a tier of your income, with the lowest portion taxed at 10%,thenextthresholdtaxedat15%andsoon.Yourfilingstatus — single taxpayer, head of household, or married couplefilingjointlyorseparately—determinestheincomerangesthatdefineyourtaxrates.

INCOME TAX RATES

Rates on Ordinary Income for the 2011 Tax Year*

+ 10% + 15% over $8,500+ 25% over $34,500+ 28% over $83,600+ 33% over $174,400+ 35% over $379,150

$0 – $8,500 $8,500 – $34,500 $34,500 – $83,600

$83,600 – $174,400 $174,400 – $379,150 $379,150 and over

*Source: IRS. Bracket ranges are preliminary and subject to change.

Single or Married Filing Separately

$0 – $17,000 $17,000 – $69,000

$69,000 – $139,350 $139,350 – $212,300 $212,300 – $379,150 $379,150 and over

$0$850

$4,750$17,025$42,449

$110,016

+ 10%+ 15% over $17,000+ 25% over $69,000+ 28% over $139,350+ 33% over $212,300+ 35% over $379,150

$0$1,700$9,500

$27,087$47,513

$102,574

$0 – $12,150 $12,150 – $46,200

$46,200 – $119,400 $119,400 – $193,350 $193,350 – $379,150 $379,150 and over

+ 10%+ 15% over $12,150+ 25% over $46,200+ 28% over $119,400+ 33% over $193,350+ 35% over $379,150

$0$1,215$6,322

$24,622$45,328

$106,642

Married Filing Jointly or Qualifying Widow(er)

Head of Household

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Work With a ProfessionalIt’s important to remember that many of the provisions of the 2010 Tax Relief Act expire at the end of 2011 or 2012, unless Congress elects to extend them. Moreover, estate and gift tax rules are complex and warrant careful planning. Be sure to discuss your personal situation with your tax professional.

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Investing inMunicipalBonds

Annual Financial Planning

Managing Money in Retirement

Exchange-TradedFunds

529CollegeSavingsPlan

© 2011 McGraw-Hill Financial Communications.

All rights reserved. Reproduction in whole or in part is prohibited without

the express permission of McGraw-Hill Financial Communications.

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