The IRS announced December 12th that the standard mileage rate used for businesses will stay at the current level of 55.5 cents per mile for 2012.
In addition, personal and dependency exemptions on the personal return will be worth $3,800 each, and each of the standard deductions moved slightly higher as well. Also, the maximum amount of wages subject to Social Security taxes will move up $3,300, to $110,100 per person.
Debate continues to rage on extending the payroll tax holiday currently in place. We’ll stay tuned to the latest coming out of Washington.