IRS Tax Preparation: Tax Changes for 2014
Tax season is here, and millions of taxpayers across the nation will begin organizing their paperwork and filing their tax returns with the IRS. But before you do that, it’s important to be aware of changes to the tax code that will impact your returns this year. There have been a number of significant changes, many of them due to the budget negotiations that took place in Washington, DC last year. If you’d like to learn more or if you’d like to learn how these changes will impact your specific tax situation, please contact us today.
FOXNews.com provides a helpful summary of the changes:
Higher-income Americans and some legally married same-sex couples are likely to feel the biggest hits from tax law changes when they file their returns in the next month or two. Taxpayers also will have a harder time taking medical deductions this year.
In other changes, the tax rate tables and the standard deduction have been adjusted for inflation, as has the maximum contribution to retirement accounts, including 401(k) plans and Individual Retirement Accounts.
The Alternative Minimum Tax has been patched — permanently — to prevent more middle-income taxpayers from being drawn in. And starting with the 2013 tax year, there’s a simpler way to compute the home office deduction.
Tax provisions for the 2013 tax year were set by Congress last January as part of legislation to avert the fiscal cliff of tax increases and spending cuts. “We finally got some certainty for this year,” said Greg Rosica, a contributing author to Ernst & Young’s “EY Tax Guide 2014.”
Nevertheless, the tax filing season is being delayed because of the two-week-long government shutdown. The Internal Revenue Service says it needed the extra time to ensure that systems are in place and working. People will be able to start filing tax returns Jan. 31. Before the shutdown, the original start date was Jan. 21.
It’s certainly not “business as usual” this year, as the IRS is still recovering from the government shutdown that took place late in 2013. In addition, the significant changes that have taken place in this year’s tax code have created plenty of room for confusion.
If you’re not clear on how these changes will impact your tax return, we can help. It’s important that you file your return properly in order to minimize your chances of facing an IRS audit.
If it’s too late and you’re already facing an IRS dispute relating to previous tax years, don’t panic! Our team specializes in representing taxpayers against the IRS. We will help you evaluate your situation and identify your best course of action – and we’ll deal directly with the IRS so that you don’t have to. We have seen firsthand how IRS disputes can turn a taxpayer’s life upside down and we’ll do everything we can to make the process as low-stress as possible. If you’d like to learn more, please get in touch with us today!