Tax Law Changes

 

Retirement planning requires choices and decisions. Selecting the right type of plan is crucial. Read below for information about the most popular options.

   
Health Coverage

Costs up 9%

Employers' spending on health coverage for workers spiked abruptly this year

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Tax Relief Act

2010 Act

Not every part is good...more

 

   

 

   
News for CPAs
New Letter Requirements

The Statement on Standards for Accounting and Review Services no. 19,  Compilation and Review Engagements, includes some major changes for Certified Public Accountants...

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Latest Tax Law Changes (updated often)

Recap of 2013 Tax Law Changes

* Same Sex Marriages. Married same-sex couples may now use the filing status of married filing joint. Please note that you must have been married in a state that recognizes same-sex marriages (rather than civil unions). You don’t need to reside in that state in order to file jointly.

* New Medicare Taxes. Effective Jan. 1, 2013, the Affordable Care Act imposed two new Medicare taxes on qualified taxpayers: a 3.8% net investment income tax and 0.9% Additional Medicare tax. Generally, these taxes will affect you if your income exceeds $200,000 (single) or $250,000 (married filing joint), $125,000 (married filing separately).

* Health Savings Accounts (HSA). If you have a high-deductible health insurance plan and an HSA, you may contribute $3,250 (individual plan) or $6,450 (family coverage plan) for 2013. The contribution limits increase to $3,300 or $6,550 respectively for 2014.

* Broker Reporting. The IRS issued final regulations on the requirement that brokers report the basis of debt instruments and options that they sell on behalf of customers. If you deal in these types of investments, your 1099 should now include basis of any sell transactions.

* Casualty/Theft Losses. In a court ruling last year, the IRS allowed a theft loss resulting from home repair fraud. If you found yourself the victim of this type of fraud or any other bad investments resulting from fraud (say for example, a Ponzi scheme), you may be able to write it off.

* IRA Contribution and other Retirement Plan Limits. For both 2013 and 2014, IRA contributions are allowed up $5,500. If you are entitled to make catch-up contributions, you may add an additional $1,000. For defined contribution plans, the limit is $51,000 for 2013 and $52,000 for 2014. Check with your employer as other restrictions may apply.

* Standard Mileage Rates. For 2013, the standard mileage rate is 56.5 cents, medical and moving is 24 cents, charitable is 14 cents. The rates for 2014 decrease to 56 cents, and 23.5 cents respectively. The charitable rate remains the same as it is set by statute.

* Home Office Deduction. The IRS announced a new optional method to determine your home office deduction which will no longer require tracking actual expenses. The maximum deduction allowed under this safe harbor method is $1,500 based on 300 square feet. For most of you, tracking actual expenses will result in a higher deduction.