Since the tax laws are long and complicated it certainly helps if you are able to remain in touch with the often changing tax rules and regulations. Tax laws can change significantly each passing year, so it makes perfect sense to check for any possible changes that might impact the personal financial situations prior to April when the tax returns are due. Below are some of the recent changes to the tax code to understand -
Energy Credits
Energy credits used for increasing the homes efficiency are due to expire after 2013. Such credits might relate to double-paned windows, insulation, and insulated hot water heaters. Any items likely to benefit from this special type of tax credit are clearly marked by the company that manufacturers the goods. Make certain to retain a copy of any relevant documentation confirming the special tax treatment since this will be required in the event of an audit taking place in the future.
Same Sex Married Couples
Since the IRS now recognizes same-sex legally married couples after a recent Supreme Court decision, it is now possible for these couples to file joint tax returns and not having to file the separate returns.
Education Credits
The American Opportunity Credit is to stay in place until at least 2017 and the Coverdell Education Savings Accounts are deemed as permanent. However, a credit that is expiring after 2013 is the tuition deduction.
Student Loan
The interest deduction on the student loan has been given a permanent status.
Earned Income Tax Credit
A refundable tax credit intended for the moderate to low-income workings refereed to as the earned income tax credit is report to end after 2017, but there is high expectation that is will be a further extension.
Estate Tax Exemption
For the 2013 period the set limit for the estate tax exemption is calculated on a figure of $525000 and this is based on the highest tax bracket of 40%. Provided an estate is valued in total below this sum, and the death takes place prior to December 31st, it isn't necessary to file an estate tax return since there is no estate tax to be levied.
Tax-free Charitable Distributions
A tax-free charitable deduction still applies through 2013 for the donations made from an IRA account to one of the non-profit and qualifying organizations by the person who is aged seventy and a half years or older. The donation amount is limited to $100,000.
More information at http://www.etax.com/resources/
Article Source: http://EzineArticles.com/?expert=Sam_J_Loeb
Article Source: http://EzineArticles.com/8182400
Energy Credits
Energy credits used for increasing the homes efficiency are due to expire after 2013. Such credits might relate to double-paned windows, insulation, and insulated hot water heaters. Any items likely to benefit from this special type of tax credit are clearly marked by the company that manufacturers the goods. Make certain to retain a copy of any relevant documentation confirming the special tax treatment since this will be required in the event of an audit taking place in the future.
Same Sex Married Couples
Since the IRS now recognizes same-sex legally married couples after a recent Supreme Court decision, it is now possible for these couples to file joint tax returns and not having to file the separate returns.
Education Credits
The American Opportunity Credit is to stay in place until at least 2017 and the Coverdell Education Savings Accounts are deemed as permanent. However, a credit that is expiring after 2013 is the tuition deduction.
Student Loan
The interest deduction on the student loan has been given a permanent status.
Earned Income Tax Credit
A refundable tax credit intended for the moderate to low-income workings refereed to as the earned income tax credit is report to end after 2017, but there is high expectation that is will be a further extension.
Estate Tax Exemption
For the 2013 period the set limit for the estate tax exemption is calculated on a figure of $525000 and this is based on the highest tax bracket of 40%. Provided an estate is valued in total below this sum, and the death takes place prior to December 31st, it isn't necessary to file an estate tax return since there is no estate tax to be levied.
Tax-free Charitable Distributions
A tax-free charitable deduction still applies through 2013 for the donations made from an IRA account to one of the non-profit and qualifying organizations by the person who is aged seventy and a half years or older. The donation amount is limited to $100,000.
More information at http://www.etax.com/resources/
Article Source: http://EzineArticles.com/?expert=Sam_J_Loeb
Article Source: http://EzineArticles.com/8182400
No comments:
Post a Comment