What's New for 2012?

This section summarizes important tax changes that took effect in 2012.
Most of these changes are discussed in more detail throughout this

Future Developments - For the latest information about the tax law
topics covered in this publication, including information about any tax
legislation, go to www.irs.gov/pub17.

Tax Benefits Extended - Several temporary tax benefits have been
extended through 2013, including the following:

  • Deduction for Educator Expenses. Please see   Chapter 19.

  • Tuition and Fees Deduction. Please see Chapter 19.

  • Credit for Non-Business Energy Property. Please see Chapter 36.

  • Election to Deduct State and Local General Sales Taxes, instead
    of, State and Local Income Taxes. Please see Chapter 22.

  • Deduction for Mortgage Insurance Premiums. Please see Chapter

  • Exclusion from Income of Qualified Charitable Distributions.
    Please see Chapter 17.

Standard Mileage Rates - The 2012 rate for business or employee
related use of your car remains 55 1/2 cents per mile. Please see
Chapter 26 for further details regarding this. The 2012 rate for use of
your car to get medical care is decreased to 23 cents per mile. Please
see Chapter 21 for further details regarding this.

Exemption Amount - The amount you can deduct for each exemption
has increased. It was $3,700 for 2011, and is now
$3,800 for 2012.
Please see Chapter 3 for further details.

Roth IRAs - If you converted or rolled over an amount to a Roth IRA
in 2010 and did not elect to report the taxable amount on your 2010
Tax Return, you generally must report half of it on your 2011 Tax
Return and the rest on your 2012 Tax Return. Please see Publication
575 for further details.

Designated Roth Accounts - If you rolled over an amount from a 401
(k) or 403(b) Plan to a designated Roth account in 2010 and did not
elect to report the taxable amount on your 2010 Tax Return, you
generally must report half of it on your 2011 Tax Return and the rest on
your 2012 Tax Return. Please see Publication 575 for further details.

Schedule 8812 - Use Schedule 8812 (Form 1040A or 1040) to figure
out your additional Child Tax Credit for 2012. Schedule 8812 is new
for 2012, while Form 8812 is no longer in use. Please see Chapter 33
for further details.

Identity Protection Personal Identification Number (Identity
Protection PIN or IP PIN) - If we sent you an Identity Protection
PIN, please use Chapter 1 as your guide on how to use it.

Mailing Your Return
- If you are filing a Paper Return, you may be
mailing it to a different address this year because the IRS has changed
the filing location for several areas. Please refer to “Where To File”,
near the end of this publication for a list of IRS addresses.

Important Reminders!

Listed below are important reminders and other items that may help
you file your 2012 Tax Return. Many of these items are explained in
more detail later in this publication.

Enter Your Social Security Number (SSN) - Enter your SSN in the
space provided on your tax form. If you filed a Joint Return for 2011
and are filing a Joint Return for 2012 with the same Spouse, please
enter your Names and SSNs in the same order as on your 2011 Tax

Secure Your Tax Records from Identity Theft - Identity theft occurs
when someone uses your personal information such as; your Name,
SSN, or other identifying information, without your permission, to
commit fraud or other crimes. An identity thief may use your SSN to
get a job, or may file a Tax Return using your SSN to receive a refund.
For more information about Identity Theft and how to reduce your risk,
please read Chapter 1 in its entirety for further details.

Tax-Payer Identification Numbers - You must provide the Tax-
Payer Identification Number for each person for whom you claim
certain tax benefits. This applies even if the person was born in 2012.
Generally, this number is the person's Social Security Number (SSN).
Please see Chapter 1 for further details.

Foreign Source Income - If you are a U.S. Citizen with income from
sources outside the United States (Foreign Income), you must report all
such income(s) on your Tax Return unless it is exempt by U.S. law.
This is true whether you live inside or outside the United States and
whether or not you receive a Form W-2 or Form 1099 from the foreign
payer. This applies to earned income (such as, Wages and Tips) as
well as unearned income (such as, Interest, Dividends, Capital Gains,
Pensions, Rents and Royalties). If you live outside the United States,
you may be able to exclude part, or all, of your foreign source earned
income. For further details, please see Publication 54 and read the
“Tax Guide for U.S. Citizens and Resident Aliens Abroad.”

Foreign Financial Assets - If you had Foreign Financial Assets in
2012, you may have to file Form 8938 with your Tax Return. Check
www.IRS.gov/form8938 for further instruction.

Automatic 6-month Extension to File Tax Return - You can use
Form 4868 “Application for Automatic Extension of Time to File U.S.
Individual Income Tax Return”, to obtain an Automatic 6-month
Extension of time to file your Tax Return. Please see Chapter 1 for
further instruction.

Include Your Phone Number(s) on Your Return - To promptly
resolve any questions we have in processing your Tax Return, we
would like to be able to call you. Please enter your Daytime Telephone
Number(s) on your Tax Form next to your signature.

Payment of Taxes - You can pay your taxes online or by phone! You
can make a direct transfer from your bank account or use a credit or
debit card. If you e-file, you can schedule an electronic payment.
Please see Chapter 1 for further details.

Faster Ways to File Your Return - The IRS offers fast, accurate
ways to file your Tax Return information without filing a Paper Tax
Return. You can use IRS e-file (Electronic Filing). Please see Chapter
1 for “How To” instructions.

FREE Electronic Filing - You may be able to file your 2012 Taxes
online for FREE, thanks to an Electronic Filing Agreement. Please see
Chapter 1 for more details!

Change of Address - If you change your address, you should notify
the IRS. Please see “Change of Address” in Chapter 1 for further

Refund on a Late Filed Return - If you were due a refund but you
did not file a Tax Return,
you generally must file your return within
3 years from the date the return was due
(including extensions), in
order to get that refund. Please see Chapter 1 for further details.

Frivolous Tax Submissions - The IRS has published a list of
positions that are identified as frivolous. The penalty for filing a
frivolous Tax Return is $5,000. Please see Chapter 1 for further details.

Filing an Erroneous Claim for a Refund or Credit - You may have
to pay a penalty if you file an erroneous claim for a refund or credit.
Please see Chapter 1 for further details.

Privacy Act and Paperwork Reduction Information - The IRS
Restructuring and Reform Act of 1998, the Privacy Act of 1974, and
the Paperwork Reduction Act of 1980 require that when we ask you for
information, we must first, tell you what our legal right is to ask for the
information - why we are asking for it, how it will be used, what could
happen if we do not receive it, and whether your response is voluntary,
what is required to obtain a benefit, and/or what is mandatory under the
law. A complete statement on this subject can be found in your tax
form instructions.

Customer Service for Tax-Payers - You can set up a personal
appointment at the most convenient Tax-Payer Assistance Center, on
the most convenient business day. Please refer to “How To Get Tax
Help” in the back of this publication for further details.

Preparer e-file Mandate - Most paid preparers must e-file Tax
Returns they prepare and file. Your preparer may make you aware of
this requirement and the options available to you.

Treasury Inspector General for Tax Administration - If you want to
confidentially report misconduct, waste, fraud, or abuse by an IRS
employee, you can call 1-800-366-4484 (call 1-800-877-8339 if you
are deaf, hard of hearing, or have a speech disability, and are using
TTY/TDD equipment). Please keep in mind - You can remain
News for 2012 Tax Return Filing

2012 IRS  
Publication 17 Still not available
Our Mission
To offer Affordable and  Professional tax
services and advice to individuals and
small businesses.

1301 Lincoln Ave.
Alameda, CA 94501

Tel: (510) 522-3677
Fax: (510) 522-3698
Lloyd W. Phraner, EA  lloyd@aptaxes.com

In Budapest Hungary           Beszélek Magyarul
Andrew Alatorre, EA   andrew@aptaxes.com