rp-11-12.pdf

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Part III

Administrative, Procedural, and Miscellaneous

26 CFR 601.602: Tax forms and instructions.
(Also Part I, §§ 1, 24, 25A, 32, 63, 132, 151, 221)

Rev. Proc. 2011-12

Table of Contents
SECTION 1. PURPOSE
SECTION 2. 2011 ADJUSTED ITEMS
Code Section

.01 Tax Rate Tables 1(a)-(e)
.02 Child Tax Credit 24
.03 Hope Scholarship and Lifetime Learning Credits 25A

.04 Earned Income Credit 32
.05 Standard Deduction 63
.06 Qualified Transportation Fringe 132(f)
.07 Personal Exemption 151
.08 Interest on Education Loans 221
SECTION 3. EFFECTIVE DATE
SECTION 4. DRAFTING INFORMATION

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SECTION 1. PURPOSE
This revenue procedure sets forth inflation adjusted items for 2011. Other i
nflation
adjusted items for 2011 are in Rev. Proc. 2010-40, 2010-46 I.R.B. 663 (dated
November 15, 2010).
SECTION 2. 2011 ADJUSTED ITEMS
.01 Tax Rate Tables
. For taxable years beginning in 2011, the tax rate tables under
§ 1 are as follows:
TABLE 1 - Section 1(a) - Married Individuals Filing Joint Returns and Surviving
Spouses
If Taxable Income Is
: The Tax Is:
Not over $17,000 10% of the taxable income
Over $17,000 but $1,700 plus 15% of
not over $69,000 the excess over $17,000
Over $69,000 but $9,500 plus 25% of
not over $139,350 the excess over $69,000
Over $139,350 but $27,087.50 plus 28% of
not over $212,300 the excess over $139,350
Over $212,300 but $47,513.50 plus 33% of
not over $379,150 the excess over $212,300
Over $379,150 $102,574 plus 35% of
the excess over $379,150
TABLE 2 - Section 1(b) – Heads of Households
If Taxable Income Is
: The Tax Is:
Not over $12,150 10% of the taxable income

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Over $12,150 but $1,215 plus 15% of
not over $46,250 the excess over $12,150
Over $46,250 but $6,330 plus 25% of
not over $119,400 the excess over $46,250
Over $119,400 but $24,617.50 plus 28% of
not over $193,350 the excess over $119,400
Over $193,350 but $45,323.50 plus 33% of
not over $379,150 the excess over $193,350
Over $379,150 $106,637.50 plus 35% of
the excess over $379,150
TABLE 3 - Section 1(c) – Unmarried Individuals (other than Surviving Spouses and
Heads of Households)
If Taxable Income Is
: The Tax Is:
Not over $8,500 10% of the taxable income
Over $8,500 but $850 plus 15% of
not over $34,500 the excess over $8,500
Over $34,500 but $4,750 plus 25% of
not over $83,600 the excess over $34,500
Over $83,600 but $17,025 plus 28% of
not over $174,400 the excess over $83,600
Over $174,400 but $42,449 plus 33% of
not over $379,150 the excess over $174,400
Over $379,150 $110,016.50 plus 35% of
the excess over $379,150
TABLE 4 - Section 1(d) – Married Individuals Filing Separate Returns
If Taxable Income Is
: The Tax Is:
Not over $8,500 10% of the taxable income
Over $8,500 but $850 plus 15% of

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not over $34,500 the excess over $8,500
Over $34,500 but $4,750 plus 25% of
not over $69,675 the excess over $34,500
Over $69,675 but $13,543.75 plus 28% of
not over $106,150 the excess over $69,675
Over $106,150 but $23,756.75 plus 33% of
not over $189,575 the excess over $106,150
Over $189,575 $51,287 plus 35% of
the excess over $189,575
TABLE 5 - Section 1(e) – Estates and Trusts
If Taxable Income Is
: The Tax Is:
Not over $2,300 15% of the taxable income
Over $2,300 but $345 plus 25% of
not over $5,450 the excess over $2,300
Over $5,450 but $1,132.50 plus 28% of
not over $8,300 the excess over $5,450
Over $8,300 but $1,930.50 plus 33% of
not over $11,350 the excess over $8,300
Over $11,350 $2,937 plus 35% of
the excess over $11,350
.02 Child Tax Credit
. For taxable years beginning in 2011, the value used in
§ 24(d)(1)(B)(i) to determine the amount of credit under § 24 that may be refundable is
$3,000.
.03 Hope Scholarship, American Opportunity, and Lifetime Learning Credits.
(1) For taxable years beginning in 2011, the Hope Scholarship Credit under
§ 25A(b)(1), as increased under § 25A(i) (the American Opportunity Tax Credit), is an

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amount equal to 100 percent of qualified tuition and related expenses not in excess of
$2,000 plus 25 percent of those expenses in excess of $2,000, but not in excess of
$4,000. Accordingly, the maximum Hope Scholarship Credit allowable under
§ 25A(b)(1) for taxable years beginning in 2011 is $2,500.
(2) For taxable years beginning in 2011, a taxpayer's modified adjusted gross
income in excess of $80,000 ($160,000 for a joint return) is used to determine the
reduction under § 25A(d)(2) in the amount of the Hope Scholarship Credit otherwise
allowable under § 25A(a)(1). For taxable years beginning in 2011, a taxpayer's
modified adjusted gross income in excess of $51,000 ($102,000 for a joint return) is
used to determine the reduction under § 25A(d)(2) in the amount of the Lifetime
Learning Credit otherwise allowable under § 25A(a)(2).
.04 Earned Income Credit
.
(1) In general
. For taxable years beginning in 2011, the following amounts are used
to determine the earned income credit under § 32(b). The "earned income amount" is
the amount of earned income at or above which the maximum amount of the earned
income credit is allowed. The "threshold phaseout amount" is the amount of adjusted
gross income (or, if greater, earned income) above which the maximum amount of the
credit begins to phase out. The "completed phaseout amount" is the amount of
adjusted gross income (or, if greater, earned income) at or above which no credit is
allowed. The threshold phaseout amounts and the completed phaseout amounts
shown in the table below for married taxpayers filing a joint return include the increase
provided in § 32(b)(3)(B)(i), as adjusted for inflation for taxable years beginning in 2011.

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Number of Qualifying Children

Item
One Two Three or More None
Earned Income $9,100 $12,780 $12,780 $6,070
Amount
Maximum Amount
of Credit $3,094 $5,112 $5,751 $464
Threshold Phaseout $16,690 $16,690 $16,690 $7,590
Amount (Single,
Surviving Spouse, or
Head of Household)

Completed Phaseout $36,052 $40,964 $43,998 $13,660
Amount (Single,
Surviving Spouse, or
Head of Household)
Threshold Phaseout $21,770 $21,770 $21,770 $12,670
Amount (Married Filing
Jointly)

Completed Phaseout $41,132 $46,044 $49,078 $18,740
Amount (Married Filing
Jointly)

The instructions for the Form 1040 series provide tables showing the amount of the
earned income credit for each type of taxpayer.
(2) Excessive investment income
. For taxable years beginning in 2011, the earned
income tax credit is not allowed under § 32(i) if the aggregate amount of certain
investment income exceeds $3,150.
.05 Standard Deduction
.
(1) In general
. For taxable years beginning in 2011, the standard deduction
amounts under § 63(c)(2) are as follows:

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Filing Status
Standard Deduction
Married Individuals Filing Joint Returns $11,600
and Surviving Spouses (§ 1(a))
Heads of Households (§ 1(b)) $8,500
Unmarried Individuals (other than Surviving Spouses $5,800
and Heads of Households) (§ 1(c))
Married Individuals Filing Separate $5,800
Returns (§ 1(d))
(2) Dependent. For taxable years beginning in 2011, the standard deduction
amount under § 63(c)(5) for an individual who may be claimed as a dependent by
another taxpayer cannot exceed the greater of (1) $950, or (2) the sum of $300 and the
individual's earned income.
(3) Aged or blind
. For taxable years beginning in 2011, the additional standard
deduction amount under § 63(f) for the aged or the blind is $1,150. These amounts are
increased to $1,450 if the individual is also unmarried and not a surviving spouse.
.06 Qualified Transportation Fringe
. For taxable years beginning in 2011, the monthly
limitation under § 132(f)(2)(A), regarding the aggregate fringe benefit exclusion amount
for transportation in a commuter highway vehicle and any transit pass, and under
§ 132(f)(2)(B), regarding the fringe benefit exclusion amount for qualified parking, is
$230.
.07 Personal Exemption
.
(1) Exemption amount
. For taxable years beginning in 2011, the personal
exemption amount under § 151(d) is $3,700.
.08 Interest on Education Loans
. For taxable years beginning in 2011, the $2,500

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maximum deduction for interest paid on qualified education loans under § 221 begins to
phase out under § 221(b)(2)(B) for taxpayers with modified adjusted gross income in
excess of $60,000 ($120,000 for joint returns), and is completely phased out for
taxpayers with modified adjusted gross income of $75,000 or more ($150,000 or more
for joint returns).
SECTION 3. EFFECTIVE DATE
This revenue procedure applies to taxable years beginning in 2011.
SECTION 4. DRAFTING INFORMATION
The principal author of this revenue procedure is Christina M. Glendening of the
Office of Associate Chief Counsel (Income Tax & Accounting). For further information
regarding this revenue procedure, contact Ms. Glendening at (202) 622-4920 (not a toll-
free call).