• Personal and dependent exemptions are $3,700, up $50 from 2010.
  
  
• The new standard deduction is $11,600 for married couples filing a joint return, up $200, $5,800 for singles and married individuals filing separately, up $100, and $8,500 for heads of household, also up $100. The additional standard deduction for blind people and senior citizens is $1,150 for married individuals, up $50, and $1,450 for singles and heads of household, also up $50.
  
  
• Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $69,000, up from $68,000 in 2010.
  
  
• The maximum earned income tax credit (EITC) for low- and moderate- income workers and working families rises to $5,751, up from $5,666 in 2010. The maximum income limit for the EITC rises to $49,078, up from $48,362 in 2010.The credit varies by family size, filing status and other factors, with the maximum credit going to joint filers with three or more qualifying children.
  
  
• The modified adjusted gross income threshold at which the lifetime learning credit begins to phase out is $102,000 for joint filers, up from $100,000, and $51,000 for singles and heads of household, up from $50,000.

• You can now choose to apply the new or old rules to estate in 2010.
• The old rules - No estate taxes but everyone has carryover rather than stepped up basis in the assets they inherit. (In reality some designated assets will receive stepped up basis through a lower exclusion).
• The new rules - 35% estate tax on assets greater than 5 million. All assets receive a stepped up basis to their FMV as of the date of death. Also, the $5 million exemption is portable, so that if a spouse dies after 2010 and doesn't use all their exemption then the surviving spouse can inherit the unused portion through 2012.
  

• The lowered tax rates we enjoy today will be extended for two years, until 2012.
• 15% rates on LT capital gains and qualified dividends was extended for 2 years (or 0 percent if you are in the bottom two tax brackets).
  
• Those paying PMI can continue to deduct the PMI premiums on Schedule A if they meet income limits in 2011 (but not 2012).
• Bonus depreciation (used to be 50% of the cost of the asset in year 1) has been increased to 100% for 2011. This makes it operate very similarly to Section 179 depreciation deduction, except bonus depreciation doesn't apply to used purchases. It 2012 it goes back to 50%, and then in 2013 it disappears.
• Luxury auto deduction cap is 11,060 per year, which is the same as 2010, but would have dropped if this law had not been signed.
• Section 179 - 500,000 in 2010, 500,000 in 2011, 125,000 in 2012.
• This is a big one that is off most radars - AMT exemption patch for 2010 and 2011 at 72,450 for MFJ. For years this has been a last minute fix, but in 2011 we will have certainty for a change.
• A new FICA tax reduction of 2% for employees (employer half of FICA remains same).
• Continue the repeal of the personal exemption and itemized deduction phaseouts on higher income filers. This also applies to sole proprietors who will receive a 2% reduction in their 2011 self employment tax.
  
• $250 teacher deduction for supplies purchased personally
• Extend the child tax credit at $1000 per child rather than $500, as well as the current rules for how much of this credit can be refunded.
• Marriage penalty relief in the tax brackets.
• Keep the max child care expenses eligible for the credit as 3000 per child rather than 2,400.
• Extend the Earned Income tax credit qualification of a third child.
• Extends the tax benefit properties of Coverdale Education Savings accounts for two more years.
• Remove the time limit on student loan interest deductions for two more years.
• Extend the American Opportunity Tax Credit for tuition and fees for two more years. This is a much more generous credit than the Hope Credit.
• Ability to deduct state sales taxes paid rather than income taxes paid for itemizers.
• Extend the tuition deduction as an above the line deduction.
• the ability to make a tax-free transfer of up to $100,000 directly from an IRA to a qualified charity.
• The energy credit for qualified improvements to your home is extended, but at it's pre-2009 less generous amount.
  

• The ability for standard deduction filers to deduct a portion of their real estate taxes. This means that it won't be an option in 2010. This benefit was originally targeted at senior citizens who owned their home outright but didn't benefit from the real estate tax deduction because of the lack of mortgage interest.
• The $400/$800 Making Work Pay credit of 2009 and 2010 was not extended.
  

• 51 cents per mile for business miles driven
• 19 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

The definition of "family members" for purposes of § 45R does not specifically refer to spouses. However, spouses of certain business owners are excluded from being taken into account as employees by operation of the ownership attribution rules in the Code. Therefore, the following individuals also are not taken into account as employees for purposes of § 45R: (1) the employee-spouse of a shareholder owning more than two percent of the stock of an S corporation; (2) the employee-spouse of an owner of more than five percent of a business; (3) the employee-spouse of a partner owning more than a five percent interest in a partnership; and (4) the employee-spouse of a sole proprietor. See § 45R(e)(1)(A); 1372(b), 318, 416(i)(1)(B)(i).

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