Standard Mileage Rates, Self-employed Health Insurance Deduction & AMT
Standard Mileage Rates
The 2011 rate for business use of your car is 51 cents a mile for miles driven before 07/01/2011 and 55.5 cents a mile for miles driven after 06/30/2011. There are different rates for miles driven for medical care and moving purpose.
Self-employed Health Insurance Deduction:
This deduction is no longer allowed on Schedule SE (1040) for calculation of self-employment taxes. (You might end up paying higher self-employment taxes due to this exclusion) You can however claim this deduction on line 29 (1040).
Alternative Minimum Tax (AMT) exemption amount increased:
The AMT exemption amount has increased to $48,450. ($74,450 if married filing jointly or qualified widow (er), $37,250 if married filing separately)
Credit for Prior Year Minimum Tax:
The tax laws give special treatment to some kinds of income and allow special deductions and credits for some kinds of expenses. If you benefit from these laws, you may have to pay at least a minimum amount of tax in addition to any other tax on these items. This is called alternative minimum tax (AMT).
The special treatment of some items of income and expenses only allows you to postpone paying tax until a later year. If in prior years, if you paid alternative minimum tax because of these tax postponement items, you may be able to take a credit for prior year minimum tax against your current year’s regular tax. The credit can be non-refundable or refundable. (Line 53 of 2011-1040 and form 8801)
Making work pay credit:
The making work pay credit has expired. The Schedule M is no longer in use and you cannot claim making work pay credit on your 2011 tax return.
