In any given year, there are likely to be federal or state tax law changes that could impact residents or businesses in Dallas, Texas. Five changes in tax law in 2013 could come into play for business and residents during the 2014 tax season.
The IRS will begin recognizing same-sex marriages for tax purposes, even if the couple currently lives in a state that doesn’t recognize the union. Couples who are legally married can choose to file as married filing separately or married filing jointly. Because the choices have varying impacts on tax returns, it’s important for couples to consider their new options carefully.
Changes to the AMT reduce the chance that moderate-income taxpayers will be caught by the tax, which was originally implemented to target higher earners with multiple deductions. New thresholds for the AMT are $80,800 for married couples who are filing jointly, $40,400 for married individuals filing separately, and $51,900 for individuals.
Two new Medicare taxes have been implemented related to the Affordable Care Act. The new taxes began in 2013 and include a 0.9 percent addition to the previous Medicare tax as well as a 3.8 percent tax on net investments. The application of these new taxes can be complicated, so it’s important to understand the details and legalities associated with your income and tax burden.
The much-debated home office deduction has been simplified for 2013. There are no changes in what qualifies the home office, but tax payers use a simplified calculation to determine the amount of the deduction; the maximum deduction of the simplified square-footage calculation is $1,500.
Finally, changes in medical expense requirements may make it more difficult for some to qualify for this deduction. For anyone 65 or under, the threshold for the deduction is now 10 percent of adjusted gross income. Understanding all of these new laws helps avoid tax trouble in the future.
Source: The Dallas Morning News, “Working on your taxes? Higher income taxpayers could see a hit from these five tax law changes” Pamela Yip, Feb. 21, 2014