Important things to note when filing your taxes in 2011

Important things to note when filing your taxes in 2011 (Alberta Times) With the president and Congress yet to decide, the future tax code is filled with different versions. As for...

(Alberta Times)

With the president and Congress yet to be determined, the future tax code is filled with different versions. As for filing taxes this year, please pay attention to the following: 1. Declaration of overseas account assets-new tax form 8938. Green card holders or citizens who are resident in the United States or single (head of household) filing tax returns have US$50,000 at the end of the year (December 31), or couples who file jointly tax return more than US$100,000. Starting from 2011, there will be a penalty for omitting to report Form 8938. The amount is 10,000 yuan. If discovered by the IRS and notified three months later, the fine will be increased by 10,000 yuan per month, up to a maximum of 50,000 yuan. Form 8938 is considered to be the IRS's continued expansion overseas and its active suppression of immigrants with foreign account assets at home and abroad. 2. The transparency of declaration of self-employment income expenses (1040 Form C) has been greatly increased - a new 1099K has been added. Starting from 2011, the IRS requires "online transaction credit card companies" that also have banking functions, such as PayPal, to disclose records of "customer" transactions of more than 20,000 yuan or more than 200 times throughout the year. For "Independent Contractors", any "Subcontractor" (Subcontractor) whose annual remuneration exceeds 20,000 yuan or has more than 200 trading activities must be issued a 1099K that is different from the 1099-Misc to make the subcontractor's incoming (income) and outgoing (Commission) offset accounts that were never shown on bank reports transparent. 3. Tighter review of stock trading - New tax form 8949. Starting from 2011, Form D has deleted the original D1 schedule and replaced it with Form 8949, which makes it easier to input and download the stock transaction data that the customer has compiled and compare it with the stock company’s trading report. Tax filers with numerous transactions have no reason to file Form 8948 (tax filers who choose to file non-electronically). Starting from 2011, stock companies must not only hand over the total amount of stocks sold by all corporate clients, but also the corresponding total amount of stocks purchased that year. 4. President Obama’s $858 billion tax cut policy in 2010, which mainly includes extending the current income tax rate by $207.5 billion, extending the current alternative minimum tax (AMT) by $137 billion, reducing social security taxes by $11 billion, and extending the current child deduction. The amount is 91 billion, extending unemployment benefits by 57 billion, extending the "American Opportunity" education tax credit by 18 billion. Closely related to the "1%" include canceling or reducing the estate tax by 68 billion, and extending the long-term capital gains tax by 53 billion. The remaining approximately 100 billion yuan is "paid for" by the elimination of the marriage penalty tax, the continuation of itemized deductions for sales tax, the deduction for continuing education tuition fees, and the deduction for teachers' and work-related expenses. 5. For long-term capital gains tax rate in 2011: If your income is in the tax rate of 10% or 15%, long-term capital gains are 0%. If you have a higher income, you need to pay a higher tax rate of 25% or higher. The capital gains tax rate is up to 15%. 6. Other related amounts that can be deducted for college tuition and transferring traditional retirement accounts to Ross For IRA... and other regulations, please contact your accountant.