The standard mileage can be used for those tax payers who have their own business to offset expenses
Daly City, CA (PRWEB) February 16, 2012
Gelardi Tax Services, a San Francisco tax preparation company would like to discuss and create awareness about the new mileage rates for 2012, which is important knowledge for those whose jobs require traveling.
The standard mileage rate for the business use of a car, van, pickup or panel truck is 51 cents per mile for miles driven during the first six months of 2011 (January through June) and 55.5 cents per mile for the rest of the year. This is up from 50 cents for 2010. The rate for the cost of operating a vehicle for medical reasons or as part of a deductible move is 19 cents per mile from January through June and 23.5 cents per mile after that, up from 16.5 cents per mile in 2010. The rate for using a car to provide services to charitable organizations is set by law and remains at 14 cents per mile.
For the 2011 tax year, the alternative minimum tax exemption (AMT) increases to the following levels: $74,450 for a married couple filing a joint return and qualifying widows and widowers, up from $72,450 in 2010; $37,225 for a married person filing separately, up from $36,225; and $48,450 for singles and heads of households, up from $47,450.
"The standard mileage can be used for those tax payers who have their own business to offset expenses," said Lisa Gelardi of Gelardi Tax Services. "AMT is important because some tax payers fall into this category and will pay the AMT tax."
In 2011, eligible self-employed individuals and corporation shareholders can use the self-employed health insurance deduction to reduce their income tax liability. Premiums paid for health insurance covering the taxpayer, spouse and dependents generally qualify for this deduction. In addition, premiums paid to cover an adult child under age 27 at the end of the year, also qualify, even if the child is not the taxpayer’s dependent. However, the deduction from self-employment income for determining self-employment tax, which was available only in the 2010 tax year, no longer applies. As before, the insurance plan must be set up under the taxpayer’s business, and the taxpayer cannot be eligible to participate in an employer-sponsored health plan.
For more information about the 2012 new mileage rates or Gelardi Tax Services, call 415-233-7764, view the company on the web at http://www.gelarditaxservice.com or visit 332 Glenwood Ave. in Daly City.
About Gelardi Tax Services
With more than ten years of providing tax services for a variety of industries in the San Francisco area, Lisa Gelardi has the knowledge and experience to make tax preparation less intimidating. From Schedule As to Schedule Es, 1040s to 1065s and back taxes to current taxes, Gelardi handles personal taxes with accuracy and ease.
As a small-business owner, Gelardi is more cost effective and a lot easier to get in touch with than other companies. Offering tax help year round, she'll even travel to clients in the Bay Area so that they save time. She communicates clearly with her clients and displays a keen ability to find solutions for a variety of tax situations and industries.