IRS Releases Cost of Living Adjustments for 2011

The IRS has released the cost-of-living adjustments for items such as the adoption credit, eligible long-term care premiums, medical savings accounts and the gift tax. 

The maximum adoption credit in 2011 will be $13,360.  For medical savings accounts, a “high-deductible health plan” will mean a plan that has an annual deducible between $2,050-$3,050 for self-only, and $4,100-$6,150 for a family plan. 

The limitation on eligible long-term care premiums starst at $340 for people under the age of 40; $640 for people between the ages of 40 and 50; $1,270 for ages 50-60; $3,390 for ages 60-70; and $4,240 for age 70 and older.

And, the gift tax exclusion remains the same in 2011 as it was in 2010.  The first $13,000 of gifts to any one person are not taxable.

You can find more cost-of-living adjustments, including such oddball items as “tax on arrow shafts” and a number of other items, here.