Tax Season is Upon Us

The 2013 tax season began on January 30th. The filing season was delayed this year because of last-minute legislation passed by Congress and signed into law by the President. This legislation altered many tax laws that the IRS needed time to assess and is still in the process of modifying forms. The IRS is now ready to provide advice and guidance for taxpayers. 

Here are some highlighted changes in this year's tax law. The Alternative Minimum Tax, or AMT, and the estate tax were made permanent in 2012. Deductions for tuition and fees and teachers educational expenditures were also brought back for 2012. For households earning $50,000 or less, I recommend checking eligibility for the Earned Income Tax Credit. This could be a substantial benefit considering about 20 percent of all eligible taxpayers don't claim it.

Now with an eye toward next year, please consider the following. "The IRS urges workers to review their withholding every year and, if necessary, fill out a new W-4 and give it to their employer. For example, individuals and couples with multiple jobs, people who are having children, getting married, getting divorced or buying a home, and those who typically wind up with a balance due or large refund at the end of the year may want to consider submitting revised W-4 forms." I mention this because unique to this year you are not limited to Married-Single/exemptions 1-10. Your specific situation is considered in four new withholding options. Speak with your Human Resource Department or your tax advisor.

Post your questions here, email me at catkinsoncpa@optonline.net, or call (631) 868-3659. To learn more about me please visit my website: www.christopheratkinsoncpa.com or www.bayportaccountant.com.

As always these tips are for contemplation only and are not considered advice or covered opinions. Please consult your tax professional for specific help on your particular set of circumstances.