IRS advises that in 2011 a number of tax benefits including the personal exemption and standard deduction will be adjusted for inflation.

Tax brackets will also widen due to tax provisions modified by legislation passed on December 17.

Personal and dependent exemptions increase $50 from $3,650 (2010 amount) to $3,700.

The standard deduction increases $200 for MFJ returns to $11,600, $100 for singles and MFS to $5,800, and also for heads of household to $8,500.

Other changes include:

Increase in the additional standard deduction by $50.

The taxable income cut-off of $68,000 after which the applicable tax rate is 25 % rate has increased by $1,000 to $69,000.

The maximum earned income tax credit rises to $5751 and the maximum income limit for the credit rises to $49,078.

Modified adjusted gross income threshold at which the lifetime learning credit begins to phase out has increased by $2,000 to $102,000 for joint filers and $1,000 to $51,000 for singles and heads of household.