With the potential for retroactive tax law changes in 2014, please prepare for the extension of the following tax laws that expired in 2013. That way, you will have the documentation necessary to take advantage of any law changes.
Educator's $250 tax deductionIf you are a teacher and have out-of-pocket expenses please keep your receipts. You may be able to deduct up to $350 of qualified expenses.
State sales tax itemized deduction option
Keep receipts of any large purchases. The sales tax provision allows for you to take either a general sales tax deduction or a state income tax deduction as an itemized deduction.
Direct contribution from retirement accounts for qualified seniors
In 2013, qualified seniors who donated funds directly from their retirement plan could exclude the plan withdrawal from income. Hold off using this technique in 2014 until you receive confirmation from Congress this tax law is extended.
Itemized deduction for mortgage insurance premium costs
Keep your insurance documentation for a potential itemized deduction.
Changes in small business depreciation
Through early October, 2014 there is no long bonus first year depreciation and Section 179 amounts are greatly reduced. Even with anticipated law changes, you have little time to purchase and install equipment. Please plan accordingly.
If other late law changes impact you, rest assured those changes will be applied to your tax return as they become known, which is why McLean Tax Advisory Group offers Tax Checklists and thorough Tax Organizers.
Call today to book your $79.95 tax appointment! (Must be 55+ to qualify for special)