Important Changes For 2011 Tax Year

January isn't just a month for New Years resolutions. It's also the time to start pulling together documents for filing your federal income tax. There are some important changes this year that taxpayers should be aware of.

For the second straight year, the tax-filing deadline is being extended from the traditional April 15 to April 17. That's because April 15 falls on a Sunday and the following day is a holiday in the District of Columbia. The April 17 date serves as a deadline for tax return filing, for payment of first quarter estimated taxes, for requesting a filing extension, and for making a 2011 contribution to a tax-deferred retirement account.

If you are reporting a capital gain or loss in 2011, there is an additional form this year. Use form 8949 to list the specifics of the gain or loss. In the past tax payers used Schedule D. This year, you will also use Schedule D, but only to summarize the transactions.

If you are claiming mileage deductions for the business use of your vehicle, there are changes to the deduction amount. You may deduct 51 cents for each business mile driven before July 1, 2012 and 55 ½ cents for miles driven after July 1.

The tax law also allows you to deduct mileage driven to receive medical car, but the allowance is less generous. The mileage deduction for miles driven before July 1 is 19 cents and 23 ½ cents a mile after July 1. The deduction applies to trips to the doctor or driving to receive specialized medical services, such as radiation treatments.

Standard deduction

Taxpayers who do not itemize deductions are allowed to take what is known as a “standard deduction,” and that amount has increased for the 2011 tax year. The new standard deduction will depend on your filing status.

If you are single or married, but filing separately, the standard deduction is $5,800. If you are married and filing jointly, the amount is $11,600 and if you are the head of a household, the amount is $8,500. The standard deduction is subtracted from your gross income on form 1040.

If you have questions about your 2011 taxes, chances are you can find the information at the IRS website.