Start Preparing your 2013 Tax Planning Now
Those who want to make sure that they have their ducks in a row should get started planning for that final tax day in advance. Most people are aware of some of the bigger life events that are going to impact what they pay in taxes, such as getting married or divorced, buying a home or having a child. But there is one variable that many people forget to take into account, and that is the government. Congress often makes late in the game decisions regarding taxes, so people need to know where they stand with these taxes before they get started.
Many tax experts have taken a look at what is going on in Congress and have some advice about what people should be considering when they are filing their taxes this year. Many have said that there may be some changes to deductions as well as capital gains this year. There will be some changed taxes on certain types of investments, bringing them up to 3.8 percent, these will work for those who are currently on Medicare. Also, this year there are going to be limits for deductions on many of those who are at a higher income level. This will be true for those who are single and earning over 79,975 dollars each year or 159,950 dollars as a married couple. Those who are at this higher income level are going to have their deductions reduced overall by 3 percent.
Long term capital gains are going to be subject to a new maximum tax, and that will be up to 20 percent. This is a fairly significant increase, so taxpayers need to be ready to consider this now. Also, some of those who are filing this year have recently become a married same-sex couple. Those who are filing their taxes for the first time should consider an amended return, as they can file retroactively before the time that they could legally married.
While tax laws that were new in 2012 are looking like they are going to be passed into permanent law, things change so often that it is hard to tell exactly how permanent these changes could be. One of these includes the personal exemption phase out, which means that those who are a higher income level are not going to enjoy their full exemption reductions. Additionally, those who are filling at certain higher income levels will be seeing another 2 percent reduction in the amount that they are getting in exemption reductions.
These are all important reasons to get ready ahead of times, so that nobody is taken surprise by the laws that are going into effect. These are all things that taxpayers should be watching for during this tax year.
Vic Abajian is a prominent Los Angeles tax attorney in California and as a former senior trial attorney with the IRS department, Vic’s law firm Abajian Law provides expert tax advice and more importantly represents individuals and large corporations in tax controversies against the IRS.