Friday , February 28, 2014 - 12:07 PM
Filing season for 2013 tax returns begins Jan. 31. This is the date that the IRS will begin accepting 2013 tax returns whether e-filed or paper filed.
To recap, 2013 tax changes include the following:
• Business mileage rate for 2013 is .56 cents per mile.
• Medical and dental expenses can be deducted once they exceed 10 percent of your adjusted gross income, unless you are 65 or older then it remain at 7.5 percent of your adjusted gross income.
• Additional Medicare Tax. Beginning in 2013, a 0.9 percent Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 for any other filing status.
• Net Investment Income Tax. Beginning in 2013, you may be subject to Net Investment Income Tax (NIIT). The NIIT is 3.8 percent of the smaller of either (a) your net investment income or (b) the excess of your modified adjusted gross income over $125,000 if married filing separately, $250,000 if married filing jointly or qualifying widow(er), or $200,000 if any other filing status.
• Change in tax rates — the highest tax rate is 39.6 percent.
• Tax rate on net capital gain and qualified dividends — the maximum tax rate of 15 percent on net capital gain and qualified dividends has increased to 20 percent for some taxpayers.
• Personal exemption amount in¬creased for certain taxpayers. Your personal exemption is increased to $3,900. But the amount is reduced if your adjusted gross income is more than: $150,000 if married filing separately, $250,000 if single, $275,000 if head of household, or $300,000 if any other filing status.
• Limit on itemized deductions. You may not be able to deduct all of your itemized deductions if your adjusted gross income is more than: $150,000 if married filing separately, $250,000 if single, $275,000 if head of household, or $300,000 if any other filing status.
• Same-sex marriages. If you have a same-sex spouse whom you legally married in a state (or foreign country) that recognizes same-sex marriage, you and your spouse generally must use the married filing jointly or married filing separately filing status on your 2013 return, even if you and your spouse now live in a state (or foreign country) that does not recognize same-sex marriage. If you meet certain requirements, you may be able to file
amended returns to change your filing status for some earlier years.
• Expiring credits. The plug-in electric vehicle credit and the refundable part of the credit for prior year minimum tax have expired. You cannot claim either one on your 2013 return.
Happy filing! For more information on completing your 2013 tax return visit: http://www.irs.gov/pub/irs-pdf/p17.pdf
Tracy Bunner is an enrolled agent and tax preparer with an office in Harrisville. She can be reached at 801-686-1995 or at firstname.lastname@example.org.
Sign up for e-mail news updates.