The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 has extended and changed a number of tax provisions for 2011. Here’s a handy cheat sheet to help you keep track of it all:
|
Top Income Tax Rate: |
35% |
|
Top Long Term Capital Gains Tax Rate: |
15% |
|
Top Gift Tax Rate: |
35% |
|
Top Estate Tax Rate: |
35% |
|
Top Trust Tax Rate: |
35% |
|
Payroll (FICA) Tax Rate: |
4.2% |
|
Gift Tax Annual Exclusion: |
$13,000 |
|
Maximum tax-free 529 Plan Contribution: |
$13,000 |
|
Federal Estate Tax Exemption: |
$5,000,000 |
|
Federal Gift Tax Exemption: |
$5,000,000 |
|
Massachusetts Estate Tax Exemption: |
$1,000,000 |
For Medicaid purposes, low inflation has kept the numbers the same for 2011:
|
Maximum Spousal Resource Standard: |
$109,560 |
|
Minimum Spousal Resource Standard: |
$21,912 |
|
Maximum MMMNA: |
$2,739 |
|
Minimum MMMNA: |
$1,821.25 |
Low inflation also means that for those receiving Social Security benefits, there will be no cost of living increase for 2011.
Julie R. Lackner, Esq.