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.
Severe delays and inconvenience for millions of taxpayers could result in 2015 if the U.S. Congress fails to deal soon with a list of temporary tax laws that expired at the end of 2013, the Internal Revenue Service and a key senator warned on Tuesday.
Known as the "extenders," the more than 50 expired tax laws are in limbo, waiting for Congress to decide whether to renew them or not. They range from tax breaks for multinational corporations to breaks for alternative energy and school teachers.
"The longer Congress delays action, the greater risk that the tax filing season and millions of taxpayer refunds will be delayed, among other serious disruptions," said Ron Wyden, the Democratic chairman of the Senate's tax-writing committee.
"As the economy begins to show signs of strength, uncertainty from the federal tax code is the last thing American businesses and families need," he said in a statement.
The extenders have been regularly renewed in past years. Wyden's committee in April approved legislation to keep the list of tax breaks alive through 2015, but the measure got bogged down in partisan squabbling earlier this year.
The Internal Revenue Service reports that taxpayers spend 20 to 25 hours preparing their own tax returns, and the time commitment exceeds 35 hours if the taxpayer files a return with a Schedule C.
The Internal Revenue Service has officially confirmed that the filing period for the upcoming tax season has been officially until January 31, 2014, shortening the season by another 10 days from the previously estimated delay.
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...
2012 began with great uncertainty over federal tax policy and now, with the end of the year approaching, that uncertainty appears to be far from any long-term resolution. A host of reduced tax rates, credits, deductions, and other incentives (collectively called the "Bush-era" tax cuts) are scheduled to expire after December 31, 2012. To further complicate planning, over 50 tax extenders are up for renewal, either having expired at the end of 2011 or scheduled to expire after 2012. At the same time, the federal government will be under sequestration, which imposes across-the-board spending cuts after 2012. The combination of all these events has many referring to 2013 as "taxmeggedon."...