In one of its final acts for the 2013-14 legislative session, Congress passed the Tax Increase Prevention Act of 2014, extending many expired tax provisions retroactively for one year through 2014. Passage also included the Achieving a Better Life Experience Act, which created tax-favored savings accounts for individuals with disabilities and select tax-related offsets.

Of the 50 tax extenders passed, these provisions are deemed most significant:

Significant tax savings can be achieved through a properly planned program of gifts to charity. Although a contribution may be motivated by humanitarian reasons, it is nevertheless wise to take the tax considerations into account when making a contribution. Charitable giving can be divided into two general categories. First, there are donations that are made on a regular basis and involve relatively small amounts. Second, there is the large extraordinary donation often associated with estate planning. Different planning concepts govern each type of donation.

The 2015 tax filing season may seem like a long time away but it is not. Individuals who want to explore minimizing their tax burden and maximizing their tax savings are eager to get started now on 2014 year-end planning. By taking certain steps now, before 2014 draws to a close, individuals may be able to reduce the size of their tax bill otherwise due when they file their returns next year. This communication explores some of traditional year-end planning techniques, how events in 2015 may impact year-end planning, and more, including the Affordable Care Act, which impacts almost everyone in one way or another. Please feel free to contact our office if you have any questions about 2014 year-end tax planning.

The health care reform package (the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010) imposes a new 3.8 percent Medicare contribution tax on the investment income of higher-income individuals. Although this tax has a wide reach, certain steps may be taken to lessen its impact. 

Starting in 2014, if you get your health insurance coverage through the Health Insurance Marketplace, you may be eligible for the premium tax credit. This tax credit can help make purchasing health insurance coverage more affordable for people with moderate incomes. The 2014 Open Enrollment Period has ended.  However, under certain circumstances you may qualify for a special enrollment period and can buy a private health plan through the Marketplace. 

During the third quarter of 2013, there were many important federal tax developments. This letter highlights some of the more significant developments for you. As always, contact our office if you have any questions.

A number of law changes go into effect in 2013 that will result in employees seeing smaller paychecks, including the expiration of the payroll tax cut, the increase in the Social Security taxable wage base, and the new 0.9% Medicare tax imposed on high wage earners. This article explains the changes and provides illustrations to show their effect on workers' paychecks.

WASHINGTON — 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 individual income tax returns on Jan. 30.

The 1099 Comprehensive Taxpayer Protection Act did not repeal some other new information reporting requirements.  In particular, taxpayers need to take notice of three new information reporting requirements that are now in effect after having withstood campaigns to have them repealed since their enactment...