2012 Tax Update

For 2012, the Social Security wage base will increase to $110,100 from the 2011 amount of $106,800.  This is the maximum amount of wages or self-employment income on which an individual must pay Social Security tax (also known as Old Age, Survivor, and Disability insurance or OASDI). View the official SSA press release.

The IRS also recently released some 2012 updated figures:

• Personal and dependent exemptions will increase to $3,800, up $100 from 2011
• 2012 standard deductions are:
• $11,900 for married filing joint, up $300
• $5,950 for single and married filing separate, up $150
• $8,700 for head of household, up $200
• The 401(k) contribution limit increases from $16,500 to $17,000 and  the catch up provision for those over the age of 50 stays at $5,500

View the full IRS news releases