As we start the 2012 tax year filing season what is new on the 2012 tax return for individuals (Form 1040 series). After the delay to the tax season, caused by Congress only passing the American Taxpayer Relief Act of 2012 on January 2, 2013, the IRS has now updated and issued most of the tax forms for 2012. Most notably the depreciation form 4562 will not be updated for awhile. So if you need to file that as part of your business profit you will have to wait to file your tax return.
- The season will officially start on January 30, 2013 when the IRS e-file system will start accepting returns and they will start processing mailed in returns.
- Filing Deadline – The due date for filing the 2012 tax return is April 15, 2013. There are no extra filing days this year due to special holidays in the District of Columbia. 🙁
- Schedule 8812 – This replaces the old form 8812 which is used to claim the Additional Child Tax Credit. The new schedule has a Part 1 seeking information about children who have an ITIN rather than a SSN.
- Reporting Capital Gains on Form 8949 – This form was introduced for the first time for the 2011 tax return. For 2012 the form has been revised to make to easier to fill in, with a rearrangement of some columns and the addition of a gain/loss column. 2012 will also be the first year that brokers will be reporting basis for mutual fund investments made in 2012. When preparing my client’s tax returns I always check the basis reported by the brokers, as it is not unknown for them to get it wrong.
- Form 8958 – Allocation of Tax Amounts Between Certain Individuals in Community Property States – This is a new form for 2012 for use in Community Property States when couples are filing Married Filing Separate. It is also to be used by California same-sex spouses and registered domestic partners of Nevada, Washington and California. In Community Property States income and deductions are generally shared equally although there are exceptions for certain property. The allocations can get complicated so seek professional advice if you are not sure how to use this form. The Community Property States are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
- Roth Rollovers – If you rolled over an IRA or 401(k) pension plan to a Roth IRA or account in 2010 and elected not to report that on your 2010 income tax return then half would have been reported on your 2011 income tax return. The other half needs to be reported on your 2012 return.
- First Time Homebuyer Credit – This is no longer available. However if you had the 2008 version of the credit you will need to report your annual repayment of the credit. In this case there is no need to fill in Form 5405. If you are repaying for any other reason for any version of the credit you need to complete From 5405.
- Medicare Deduction For Self-Employed – Although this has been around for awhile it has only been in the last 12 months that the IRS has clarified the availability of this deduction. It will apply to those who are self-employed and receiving Social Security and paying Medicare premiums. These premiums qualify as health insurance premiums making them available for the self-employed health insurance deduction. If you failed to claim this in prior years, you can go back to 2009 and file amended returns.
- Extended Tax Benefits – For details of some of the tax benefits that have been extended for 2012 see my January 2013 Newsletter.
If you need assistance preparing your 2012 Income Tax Return call me on (480) 363-4808 to make an appointment. If you live in Chandler, Phoenix, Tempe, Mesa, Gilbert, Queen Creek or Scottsdale, AZ I will save you time and hassle by coming to you to prepare your income tax return. If you live elsewhere I can prepare the tax return using information you upload to my secure client portal or mail to me. I look forward to helping you prepare your income tax return.
Disclaimer – This article does not constitute personal tax advice to the reader and is only offering general information. You should seek professional advice for your own situation as the most appropriate tax planning depends on your personal and unique circumstances.