Preparing for Next Year’s Tax Season

With the holidays on the horizon, so is the rapidly approaching tax year-end – making it an opportune time to consider final moves to lower your 2013 tax bill. While the 2013 federal income tax picture is mostly the same for individuals as in 2012, there are some exceptions, including for people with higher incomes. The Weaver newsletter article Gearing Up for Next Year’s Tax Season highlights the similarities and differences between the 2012 and 2013 tax years:

• Income tax rates
• Capital gain and dividend tax rates
• The new .9% and 3.8% Medicare surtaxes
• Itemized deduction phase-out
• Medical expense write-offs

The article also includes a tax rate chart for 2014, as well as discusses a list of popular individual federal income tax breaks that are soon to expire, pending Congress’ decision to extend them. With this overview in mind, now is the time to consider year-end tax saving strategies to potentially lower your 2013 tax bill.