In the tax world the start of a new year means that last year’s tax laws will expire and new ones will take in to effect. Below are some tax law changes that became effective as of January 1^st2012.  Keep in mind that these changes apply only to 2012, so your 2011 return that you will file this year will be unaffected.

• The thresholds for 2012 Federal income tax-bracket have risen for each filing status. For example, for a married couple filing jointly, the threshold separating the 15% and 25% bracket has gone up to $70,700 from $69,000 for 2011.
• The standard deduction has also risen slightly. For singles, the basic deduction amount is $5,950, up from $5,800 last year. For married couples, the deduction amount has gone up to $11,900 from $11,600 in 2011.
• The maximum amount of the earned income tax credit for low and moderate workers and working families has is now $5,891 from $5,751 in 2011.
• The foreign earned income exclusion amount has gone up to $95,100 from $92,900.
• The mileage rate for using your car, van, pickup or panel truck for business will remain the same at 55.5 cents a mile. However, the rate of using your car for medical or moving purposes has gone down to 23 cents a mile, from 23.5 cents a mile in the second half of 2011. The rate set by Congress for using your car to provide services to charitable organizations is unchanged at 14 cents a mile.