Important New Tax Changes 2011 2012 Dividends - Maximum Tax Rate 15% 15% Capital Gains - Maximum Tax Rate 15% 15% Child Tax Credit (Subject to phase out for higher incomes) $1,000 $1,000 Maximum Section 179 Deduction $500,000 $139,000 Bonus Depreciation for New Qualified Property 100% 50%       Retirement Provisions 2011 2012 Maximum annual 401(k) or 403(b) salary-deferred limit $16,500/22,000 (2) $17,00/22,500 (2) Maximum annual pension under defined benefit plan $195,000 $200,000 Maximum annual additions limit under defined contribution plan $49,000 $50,000 Maximum includible compensation for computing contributions $245,000 $250,000 Maximum SIMPLE salary-deferred limit $11,500/$14,000 (2) $11,500/$14,000 (2) Minimum annual compensation for determining a “highly compensated  $110,000 $115,000 employee" (used in 401(k) nondiscrimination tests)     Minimum annual compensation amount for SEP participation $550 $550 Maximum annual Traditional and Roth IRA $5,000/$6,000 (2) $5,000/$6,000 (2)       Beginning/Ending Traditional IRA Deduction Phaseout Range     Joint (participating spouse) or qualifying widow $90,000/110,000 $92,000/112,000 Joint (non-participating spouse) $169,000/179,000 $173,000/183,000 Single or Head of household $56,000/66,000 $58,000/68,000 Married filing separately $0/10,000 $0/10,000       Beginning/Ending Roth IRA Contribution Phaseout Range     Joint or qualifying widow $169,000/179,000 $173,000/183,000 Single or Head of household $107,000/122,000 $110,000/125,000 Married filing separately $0/10,000 $0/10,000       Standard Deductions 2011 2012 Joint or qualifying widow $11,600 $11,900 Single $5,800 $5,950 Head of household $8,500 $8,700 Married filing separately $5,800 $5,950 Additional for elderly or blind (married) $1,150 $1,150 Additional for elderly or blind (unmarried) $1,450 $1,450 Taxpayer claimed as dependent (1) $950 $950       Personal/Dependent Exemption $3,700 $3,800 Unearned income without kiddie tax $1,900 $1,900       Beginning of 15% Income Tax Bracket 2011 2012 Joint or qualifying widow $17,000 $17,400 Single $8,500 $8,700 Head of household $12,150 $12,400 Married filing separately $8,500 $8,700 Estates and nongrantor trusts $0 $0       Beginning of 25% Income Tax Bracket 2011 2012 Joint or qualifying widow $69,000 $70,700 Single $34,500 $35,350 Head of household $46,250 $47,350 Married filing separately $34,500 $35,350 Estates and nongrantor trusts $2,300 $2,400       Beginning of 28% Income Tax Bracket 2011 2012 Joint or qualifying widow $139,350 $142,700 Single $83,600 $85,650 Head of household $119,400 $122,300 Married filing separately $69,675 $71,350 Estates and nongrantor trusts $5,350 $5,600       Beginning of 33% Income Tax Bracket 2011 2012 Joint or qualifying widow $212,300 $217,450 Single $174,400 $178,650 Head of household $193,350 $198,050 Married filing separately $106,150 $108,725 Estates and nongrantor trusts $8,200 $8,500       Beginning of 35% Income Tax Bracket 2011 2012 Joint, Single, Head of household $379,150 $388,350 Married filing separately $189,575 $194,175 Estates and nongrantor trusts $11,150 $11,650       FICA/SE Tax Information 2011 2012 Employee FICA tax rate (including Medicare) 5.65% 7.65% Employer FICA tax rate (including Medicare) 7.65% 7.65% SE tax rate (including Medicare) 13.30% 15.30% Maximum earnings subject to full rate $106,800 $110,100       Medicare rate applicable to all earnings over limit 2011 2012 Employee Medicare 1.45% 1.45% Self-employed Medicare 2.90% 2.90%       Beginning/Ending of U.S. Savings Bond Interest Income 2011 2012 (Used for Higher Education)  - Exclusion Based on Modified AGI     Joint return $106,650/136,650 $109,250/139,250 Unmarried $71,100/86,100 $72,850/87,850 Married filing separately $0 $0       Gift and Estate Tax Unified Credit Equivalent 2011 2012 Federal $5,000,000 $5,120,000 Minnesota Filing Threshold $1,000,000 $1,000,000 Wisconsin Filing Threshold N/A N/A       Automobile Standard Mileage Allowances 2011 2012 Business 0.555 (3) TBD Charitable $0.140 TBD Medical/Moving 0.235 (3) TBD       Automobile Depreciation Limits 2011 2012 First year $3,060 TBD with bonus depreciation $11,060 TBD Second year $4,900 TBD Third year $2,950 TBD Fourth year and thereafter $1,775 TBD       Light Trucks & Vans Depreciation Limits 2011 2012 First year $3,260 TBD with bonus depreciation $11,260 TBD Second year $5,200 TBD Third year $3,150 TBD Fourth year and thereafter $1,875 TBD       Heavy Vehicles - Loaded GVW between 6,000 and 14,000 lbs 2011 2012 Section 179 expensing limit $25,000 $25,000       Max Deductible 401(k) and 403(b) Employee Contribution 2011 2012   $16,500/22,000(2) $17,000/22,500(2)       Self Employed Health Insurance Deduction Allowed Against AGI 2011 2012   100% 100%       Health Savings Accounts(HSAs) Contribution/Deduction Maximums 2011 2012 Self-coverage $3,050 $3,100 Family Coverage $6,150 $6,250 Catch-up Contributoin $1,000 $1,000       Earnings Limit for Social Security 2011 2012 Below age 65 $14,160 $14,640 Age 65 (months prior to birthday) $37,680 $38,880 Age 65-69 Unlimited Unlimited Age 70 and above Unlimited Unlimited       (1) If an individual who can be claimed as a dependent on another’s return has earned income, the standard deduction for is the greater of $950 or $300 plus the earned income.  However, the deduction may not exceed the regular standard deduction for that individual. (2) For participants who have attained age 50 by the end of the year, the higher limit is applicable.   (3) Business mileage allowance is $0.51 through 06/30/11 and $0.555 after 06/30/11.  Medical and moving mileage allowance is $0.19 through 06/30/11 and $0.235 after 06/30/11. TBD - To be determined