The Social Security Administration announced that the wage base for computing the Social Security tax (OASDI) in 2012 increases to $110,100 from $106,800, which was the wage base for 2009 through 2011.The Internal Revenue Service announced the increase in numerous tax benefits due to inflation adjustments. The new amounts will affect the 2012 income tax returns and include the following:

• The value of each personal and dependent exemption, available to most taxpayers, is $3,800 (up $100 from 2011).
• The new standard deduction is $11,900 for married couples filing a joint return (up $300), $5,950 for singles and married individuals filing separately (up $150), and $8,700 for heads of household (up $200).
• The exemption from “Kiddie Tax” remains at $1,900. 
• The annual exclusion for gifts remains at $13,000. 
• The aggregate cost of Section §179 property that a taxpayer may elect to expense is $139,000, and that dollar amount is reduced by the amount the cost of all Section §179 property placed into service during the taxable year exceeds $560,000.

 A full list of adjustments and details on the above can be found in Revenue Procedure 2011-52 at www.irs.gov.