By Harvey Amwake, C.P.A.

    The tax law requires that certain tax numbers be adjusted for inflation each year. Here are some of the 2012 tax numbers you’ll need to use as you get started with this year’s tax planning.

     The standard mileage rate for business driving remains at 55.5¢ per mile for 2012. The rate for medical and moving mileage decreases from 23.5¢ per mile to 23¢ per mile. The general rate for charitable driving remains at 14¢ per mile

     The maximum earnings subject to social security tax increases to $110,100. The earnings limit for those under full retirement age is $14,640. For those at full retirement age, there is no earnings limit.

The “nanny tax” threshold increases to $1,800 for 2012. If you pay household workers more than this amount during the year, you’re responsible for payroll taxes.

     The “kiddie tax” threshold is unchanged for 2012. If your child under age 19 (under age 24 for students) has more than $1,900 of unearned income this year (e.g., dividends and interest income), the excess could be taxed at your highest rate.

     The maximum individual retirement account (IRA) contribution you can make in 2011 remains unchanged at $5,000 if you’re under age 50 and at $6,000 if you are 50 or older.

     The maximum amount of wages employees can put into a 401(k) plan increases to $17,000. The 2012 maximum allowed for SIMPLE plans remains at $11,500. If you are 50 or older, you can contribute up to $22,500 to a 401(k) and $14,000 to a SIMPLE plan.

     For 2012, the maximum amount that can be contributed to a health savings account (HSA) increases to $3,100 for individuals and $6,250 for families.

    Tax legislation could change these and other important tax numbers at any time. Before making important business and personal financial decisions this year, consult your tax adviser or contact us for the latest rules.

This article is for general information only and does not constitute financial advice. If you have any questions about financial matters, consult a professional tax adviser. Harvey Amwake, CPA, is a tax and small business consultant with the accounting firm of Arthur Spoon & Company, Ltd., at 1130 E. Missouri Ave., Suite 820. He can be reached at 602-264-6500 or by e-mail at Harvey@ArthurSpoon.com.