diff --git a/python/src/com/jetbrains/python/formatter/PyBlock.java b/python/src/com/jetbrains/python/formatter/PyBlock.java
index fdcd46b6bbdd..4a76a487de6d 100644
--- a/python/src/com/jetbrains/python/formatter/PyBlock.java
+++ b/python/src/com/jetbrains/python/formatter/PyBlock.java
@@ -336,7 +336,16 @@ public class PyBlock implements ASTBlock {
     else if (elem instanceof PyFunction) {
       return hasHangingIndent(((PyFunction)elem).getParameterList());
     }
-    else if (elem instanceof PySequenceExpression) {
+
+    final PsiElement firstChild = elem.getFirstChild();
+    if (firstChild == null) {
+      return false;
+    }
+    if (PyTokenTypes.OPEN_BRACES.contains(firstChild.getNode().getElementType()) && hasLineBreaksAfter(firstChild.getNode(), 1)) {
+      return true;
+    }
+
+    if (elem instanceof PySequenceExpression) {
       items = ((PySequenceExpression)elem).getElements();
     }
     else if (elem instanceof PyParameterList) {
@@ -345,14 +354,19 @@ public class PyBlock implements ASTBlock {
     else if (elem instanceof PyArgumentList) {
       items = ((PyArgumentList)elem).getArguments();
     }
+    else if (elem instanceof PyParenthesizedExpression) {
+      final PyParenthesizedExpression parenthesizedExpr = (PyParenthesizedExpression)elem;
+      if (parenthesizedExpr.getContainedExpression() instanceof PyTupleExpression) {
+        items = (((PyTupleExpression)parenthesizedExpr.getContainedExpression()).getElements());
+      }
+      else {
+        items = new PsiElement[]{parenthesizedExpr.getContainedExpression()};
+      }
+    }
     else {
       return false;
     }
-    if (items.length == 0) {
-      return true;
-    }
-    final PsiElement firstItem = items[0];
-    return hasLineBreaksBefore(firstItem.getNode(), 1) || hasHangingIndent(firstItem);
+    return items.length == 0 || hasHangingIndent(items[0]);
   }
 
   private static boolean breaksAlignment(IElementType type) {
@@ -439,7 +453,7 @@ public class PyBlock implements ASTBlock {
           myContext.getMode() == FormattingMode.ADJUST_INDENT) {
         return true;
       }
-      return false;
+      return !hasHangingIndent(_node.getPsi());
     }
     if (_node.getElementType() == PyElementTypes.ARGUMENT_LIST) {
       if (!myContext.getSettings().ALIGN_MULTILINE_PARAMETERS_IN_CALLS || hasHangingIndent(_node.getPsi())) {
@@ -477,12 +491,18 @@ public class PyBlock implements ASTBlock {
     return node;
   }
 
-  private static boolean hasLineBreaksBefore(ASTNode child, int minCount) {
+  private static boolean hasLineBreaksBefore(@NotNull ASTNode child, int minCount) {
     final ASTNode treePrev = child.getTreePrev();
     return (treePrev != null && isWhitespaceWithLineBreaks(TreeUtil.findLastLeaf(treePrev), minCount)) ||
            isWhitespaceWithLineBreaks(child.getFirstChildNode(), minCount);
   }
 
+  private static boolean hasLineBreaksAfter(@NotNull ASTNode child, int minCount) {
+    final ASTNode treeNext = child.getTreeNext();
+    return (treeNext != null && isWhitespaceWithLineBreaks(TreeUtil.findLastLeaf(treeNext), minCount)) ||
+           isWhitespaceWithLineBreaks(child.getLastChildNode(), minCount);
+  }
+
   private static boolean isWhitespaceWithLineBreaks(ASTNode node, int minCount) {
     if (node != null && node.getElementType() == TokenType.WHITE_SPACE) {
       String prevNodeText = node.getText();
diff --git a/python/testData/formatter/alignInParenthesizedExpression_after.py b/python/testData/formatter/alignInParenthesizedExpression_after.py
index 868557ca748f..9e619c4e8013 100644
--- a/python/testData/formatter/alignInParenthesizedExpression_after.py
+++ b/python/testData/formatter/alignInParenthesizedExpression_after.py
@@ -5,4 +5,4 @@ print(1 + (1 + (1
            +
            x.
            calc()
-))
\ No newline at end of file
+           ))
\ No newline at end of file
diff --git a/python/testData/formatter/alignmentOfClosingBraceInDictLiteralWhenNoHangingIndent.py b/python/testData/formatter/alignmentOfClosingBraceInDictLiteralWhenNoHangingIndent.py
new file mode 100644
index 000000000000..af427d022905
--- /dev/null
+++ b/python/testData/formatter/alignmentOfClosingBraceInDictLiteralWhenNoHangingIndent.py
@@ -0,0 +1,8 @@
+class Checkpoints(webapp2.RequestHandler):
+    def get(self):
+        self.response.write(json.dumps({"meta": {"code": 400,
+                                                 "errorType": "paramError",
+                                                 "errorDetail": "Parameter 'api_key' is missing"
+        },
+                                        "response": {}
+                                    }))
\ No newline at end of file
diff --git a/python/testData/formatter/alignmentOfClosingBraceInDictLiteralWhenNoHangingIndent_after.py b/python/testData/formatter/alignmentOfClosingBraceInDictLiteralWhenNoHangingIndent_after.py
new file mode 100644
index 000000000000..d7df54a76338
--- /dev/null
+++ b/python/testData/formatter/alignmentOfClosingBraceInDictLiteralWhenNoHangingIndent_after.py
@@ -0,0 +1,8 @@
+class Checkpoints(webapp2.RequestHandler):
+    def get(self):
+        self.response.write(json.dumps({"meta": {"code": 400,
+                                                 "errorType": "paramError",
+                                                 "errorDetail": "Parameter 'api_key' is missing"
+                                                 },
+                                        "response": {}
+                                        }))
\ No newline at end of file
diff --git a/python/testData/formatter/tupleInArgList_after.py b/python/testData/formatter/tupleInArgList_after.py
index ff31f6bd51cc..72dce723faab 100644
--- a/python/testData/formatter/tupleInArgList_after.py
+++ b/python/testData/formatter/tupleInArgList_after.py
@@ -1,4 +1,4 @@
 urlpatterns = patterns('',
                        (r'^admin/', include(admin.site.urls)),
                        url(r'^', include('cms.urls')),
-)
+                       )
diff --git a/python/testSrc/com/jetbrains/python/PyFormatterTest.java b/python/testSrc/com/jetbrains/python/PyFormatterTest.java
index a1f5cc860347..96e2c7e86ee7 100644
--- a/python/testSrc/com/jetbrains/python/PyFormatterTest.java
+++ b/python/testSrc/com/jetbrains/python/PyFormatterTest.java
@@ -466,6 +466,11 @@ public class PyFormatterTest extends PyTestCase {
     }
   }
 
+  // PY-12145
+  public void testAlignmentOfClosingBraceInDictLiteralWhenNoHangingIndent() {
+    doTest();
+  }
+
   /**
    * This test merely checks that call to {@link com.intellij.psi.codeStyle.CodeStyleManager#reformat(com.intellij.psi.PsiElement)}
    * is possible for Python sources.