Here are a few details that may affect your taxes this year. The standard deduction increased to $11,900 for married couples filing jointly, and for qualifying widows and widowers; and it was finally indexed to inflation. The deduction for singles and married individuals filing separately is $5,950.00. The deduction for head of households is $8,700.00.
Don’t forget you have until April 15 to make up to a $5,000 IRA contribution. If you’re over 50 you can make an additional $1,000.00 contribution.
The standard business rates for 2013 are 55.5 per mile cents for business use, 23 cents for medical reasons or a qualified move and 14 cents for charitable purposes.
If you have children don’t forget about the earned income credit, which is significant if you have qualifying children. Also take advantage of the American Opportunity Tax Credit, worth up to $2,500.00, which can be claimed for each of the first four years of college and was extended to 2017.
Finally, the estate taxes at a top rate of 35% will apply to single estates over 5.12 million and 10.24 for family estates.
For more information please contact a tax accountant or CPA.