What Are The New Rules For Government Taxes For 2011?

By mfishman

Every year all American tax payers are required to fill out their federal income taxes. While many people fill out their taxes, most are unaware of all of the tax rules which could affect their total tax bill. Like most years, the 2011 tax year will have many different tax changes which could affect how much someone owes.

Social Security Tax

The first new rule for government taxes in 2011 is changes to the social security tax. Prior to this year, all tax payers were required to pay 6.2% of their salary to help fund social security. One of the newest changes for government taxes for 2011 is a reduction in this amount. For one year only, all tax payers will only be charged 4.2% of their income for social security.

Alternative Minimum Tax

The second new rule for government taxes in 2011 is changes to the alternative minimum tax. In some situations, individuals and businesses who earn a lot of money, but have a lot of tax deductions and previous year carryovers end up not having to pay any money on federal taxes. In 2011, the government instituted an alternative minimum tax which will prevent the wealthy from completely avoiding all of their taxes.

Estate Tax

The third new rule for government taxes in 2011 is changes to the estate tax rule. In previous years, many people were able to pass down their entire estate to an heir without having to pay any taxes on it. However, starting in 2011 those passing down more than $10 million to their heirs will be subject to an estate tax of 35% for any dollar over than amount.

Related posts:

1. What Will Be New For Taxes In 2011?
2. When Can I File My Taxes For 2011?
3. Will There Be More Tax Breaks For 2011?
4. The Government Nationwide Tax Forum 2011
5. Where Are Dividend Tax Rates Going in 2011?