Tax Law Changes
The most frequently asked tax questions related to Tax Law Changes
401(k), 403(b), 457 and TSP plans - Maximum 2013 Contribution limits
Asked Tuesday, February 05, 2013 by an anonymous userCPA Answer:
The limit on employee elective deferrals is $17,500 for 2013. ($17,000 for 2012) and $23,000 if age 50 or older ($22,500 in 2012)
The catch up contribution limit for employees 50 and over remains unchanged at $5,500.
Generally, all elective deferrals made to all plans in which you participate are aggregated to determine if you have exceeded these limits.
The catch up contribution limit for employees 50 and over remains unchanged at $5,500.
Generally, all elective deferrals made to all plans in which you participate are aggregated to determine if you have exceeded these limits.
Social Security - Mailing of Paper checks to end
Asked Thursday, January 31, 2013 by an anonymous userCPA Answer:
On March 1, 2013, the Treasury department will stop mailing paper checks to Social Security recipients. Retirees will be required to choose to have their Social Security payments either directly deposited into a bank or credit union account or loaded onto a prepaid Direct Express Debit MasterCard.
New Social Security beneficiaries have been required to choose an electronic payment option since May 2011, and approximately 93 % of Social Security and Supplemental Security Income payments are already being made electronically.
New Social Security beneficiaries have been required to choose an electronic payment option since May 2011, and approximately 93 % of Social Security and Supplemental Security Income payments are already being made electronically.
Teacher's deduction
Asked Thursday, January 31, 2013 by an anonymous userCPA Answer:
An eligible educator's above the line deduction for up to $250 in qualified classroom expenses has been extended from 2011 to 2012 and 2013.
Teacher's deduction
Asked Thursday, January 31, 2013 by an anonymous userCPA Answer:
An eligible educator's above the line deduction for up to $250 in qualified classroom expenses has been extended from 2011 to 2012 and 2013.
2012 Tax Return Filing Season starts January 30th, 2013
Asked Tuesday, January 22, 2013 by an anonymous userCPA Answer:
Following the January tax law changes made by Congress under the American Taxpayer Relief Act (ATRA), the Internal Revenue Service announced today it plans to open the 2013 filing season and begin processing the majority of individual income tax returns on January 30th 2013.
There are several forms affected by the late legislation that require more extensive programming and testing of IRS systems. The IRS hopes to begin accepting tax returns including these tax forms between late February and into March
There are several forms affected by the late legislation that require more extensive programming and testing of IRS systems. The IRS hopes to begin accepting tax returns including these tax forms between late February and into March
Standard deduction - 2013
Asked Thursday, January 17, 2013 by an anonymous userCPA Answer:
The standard deduction rises to $6,100 ($12,200 for married couples filing jointly), up from $5,950 ($11,900 for married couples filing jointly) for tax year 2012.
Personal Exemptions - 2013
Asked Thursday, January 17, 2013 by an anonymous userCPA Answer:
The personal exemption amount rises to $3,900, up from the 2012 exemption of $3,800.
Beginning in 2013, the exemption is subject to a phase-out that begins with adjusted gross incomes of $250,000 ($300,000 for married couples filing jointly). It phases out completely at $372,500 ($422,500 for married couples filing jointly.)
Beginning in 2013, the exemption is subject to a phase-out that begins with adjusted gross incomes of $250,000 ($300,000 for married couples filing jointly). It phases out completely at $372,500 ($422,500 for married couples filing jointly.)
Alternative Minimum Tax Exemption Amounts
Asked Thursday, January 17, 2013 by an anonymous userCPA Answer:
The (AMTE) Alternative Minimum Tax Exemption amount is $53,900 ($83,800, for married couples filing jointly),
Earned Income Credit - Maximum amount - 2013
Asked Thursday, January 17, 2013 by an anonymous userCPA Answer:
The maximum Earned Income Credit amount is $6,044 for taxpayers filing jointly who have three or more qualifying children, up from a total of $5,891 for tax year 2012.