Relocation Tax Law Changes

During the last month of 2010, Congress signed into law the Economic Growth and Tax Relief Act of 2010. The changes that we need to be aware of are:


• The new law reduced the employee's share of Social Security tax for 2011 from 6.2% to 4.2%.
• The new law extends the income tax rates for two years for everyone.
• Temporarily extends the 10% bracket.
• Temporarily extends the 25%, 28%, 33% and 35% tax brackets through 2012.
• The 15% top rate for capital gains and qualified dividends will remain for 2011 and 2012.
• Temporarily repeals the personal exemption phase-out.
• Temporarily repeals the itemized deduction limitation.
• Temporarily extends the current modified child tax credit. The amount stays at $1,000 per child and may be refundable.

• Per IRS Notice 2010-88 the 2011 mileage rates are:
o Business Standard Mileage Rate: 51 cents per mile
o Moving/Medical Standard Mileage Rate: 19 cents per mile
o Charitable Standard Mileage Rate: 14 cents per mile

• Two year alternative minimum tax (ATM) patch for exemption amounts:
o 2010 $47,450 (individuals) $72,450 (married filing jointly)
o 2011 $48,485 (individuals) $74,450 (married filing jointly)

Relocation Benefits Expense Management Software continually updates federal and state tax changes so that you can be sure that your employee expense management is handled properly.

To find out more about our EXPENSE MANAGEMENT SERVICES please contact me andy@relocationbenefits.com