SlideShare uma empresa Scribd logo
1 de 11
2013 4th Quarter
Tax Planning Tips
for Individuals
www.nexus-financial.com
Introduction
• Contrary to popular belief, tax planning is really a
simple task that should be undertaken each year.
Begin with anticipating your gross income for the
year as well as allowable deductions to determine
your tax bracket and income thresholds that will
either limit your ability to take advantage of
deductions and/or credits, or trigger higher and/or
additional taxes. Once you can estimate what your
income taxes will look like, you can then evaluate
which strategies will serve you best when its time to
file your taxes. Outlined in this presentation are
actions you can take to minimize tax liability.
2
4th Quarter Tax Planning Tips
•

•

•

•

Know your tax rate. Although 2013 ordinary federal income tax rates
will stay the same, higher income individuals’ tax brackets have
increased from 35% to 39.6%. (The high-income individual tax rate is
higher than the corporate tax rate of 35%.)
Leverage itemized deductions. Alternate year-to-year between taking
the standard deduction with “bunching” miscellaneous itemized
deductible expenditures, medical expenses and other itemized
deductions.
Defer income. If you expect to be in the same or lower tax bracket in
2014, it is wise to defer as much income as possible to next year.
• Ask your employer to defer a bonus that may be coming your way
until 2014.
Time investment gains and losses. Selling appreciated securities
before year end may be a smart tax strategy.
• Long-term capital gains are taxed at 0% for taxpayers in the 15%
tax bracket. Capital losses can be used to offset capital gains and
reduce other income up to $3,000.

3
• Take advantage of tax breaks. For those age 70 ½ make taxfree charitable contributions from your required IRA
distributions. Special rules apply.
• Use it or lose it. “Spend down” flexible spending accounts
before the balances expire. Contribution limits capped at
$2,500 this year.
• Calculate and estimate carefully. Increase the amount you
set aside next year in your employer’s health flexible
spending account if you set aside too little this year.
• Adjust elective deferral plans at work. Maximum deferral for
2013 is $17,500. This increases to $23,000 for taxpayers age 50
and over.
• New taxes in effect. Effective for the first time in 2013 are a
3.8% Medicare Investment Tax, a surtax on net investment
income and the 0.9% Medicare Health Insurance Tax, a payroll
tax on wages and self employment income. These taxes affect
high-income taxpayers.

4
• Maximize tax credits, deductions and exclusions which will
sunset unless extended by an act of Congress. Among these
are:

• Make energy-saving improvements to your home or purchase
energy-efficient appliances;
• Above-the-line deduction for $250 unreimbursed, out-ofpocket expenses of grades K-12 teachers, instructors,
counselors, principals and aides;
• Choice between general sales tax deduction or deduction for
state and local income tax deduction;
• Above-the-line qualified higher education tuition and fees
deduction;
• Deduction for mortgage insurance premiums as qualified
home mortgage interest if AGI is not more than $109,000;
and
• Cancellation of principal residence debt can be excluded from
gross income this year if discharged because of change in
financial condition or decline in value of residence.
5
• Note the new rules.
• Rules for home office deductions have changed allowing
for a more simplified option for a maximum standard
$1,500 deduction.
• Depreciation rules have changed resulting in many
refundable credits disappearing.
• Prepay expenses. Consider using a credit card to prepay
expenses that can generate deductions for this year.
• Increase withholding. If you expect to owe state and local
income taxes, consider asking your employer to increase
withholding of state and local taxes before year-end to pull the
deduction of those taxes into 2013.
• Accelerate purchases. Make big ticket purchases before year
end in order to assure a deduction for sales taxes on the
purchases if you elect to claim a state and local general sales
tax deduction instead of a state and local income tax
deduction. This choice won’t be available after 2013.
6
• Familiarize yourself the Affordable Care Act. This
new legislation may have an impact on your tax
status and liability in 2014. Among other things,
• The Act raises the income threshold this year to 10%
of AGI for taxpayers 65 and under. You may need to
defer medical bills to lump expenses in a single year to
get the deduction.
• Mandate and requirement to have coverage or pay a
penalty.
• Greater of $695 per year up to a maximum of $2,085
per family or 2.5% of household income
• Phase in: $95 in 2014, $325 in 2015 and $695 in 2016
for the flat fee of 1% of taxable income in 2014, 2% of
taxable income in 2015, and 2.5% of taxable income in
2016
7
Other Provisions
• The tax credit for new energy-efficient homes is set
to expire
• The monthly exclusion for transit passes and
vanpooling will change
• New capital gains and qualified dividends rate took
effect in 2013.
• Maximum rate on long-term gains increased from
15% to 20% and now also applies to dividends.

• Same-sex couples who are legally married will be
recognized by the federal government
• Able to file joint federal tax return this tax season
• Able to file amended returns for previous tax years

8
Standard Deduction Increase
• For taxable years beginning in 2013, the standard
deduction amounts, adjusted for inflation, are as follows:
Filing Status

Standard Deduction

Married Filing Jointly and
Surviving Spouses

$12,200

Head of Household

$8,950

Single

$6,100

Married Filing Separately

$6,100

Aged or blind – (additional

$1,200

deduction)

Aged or blind, unmarried
and not a surviving spouse –
(additional deduction)

$1,500
9
Current Tax Rate Table
Taxable Income

Tax Rate [Bracket]

Married Filing
Jointly

Head of
Household

Ordinary
Income

Short-term
Capital Gain

Long-term
Capital Gain

Qualified
Dividend

NIIT
Tax*

$0-17,850

$0-12,750

10%

10%

0%

0%

0%

8,926-36,250

17,851-72,500

12,751-48,600

15%

15%

0%

0%

0%

36,251-87,850

72,501-146,400

48,601-125,450

25%

25%

15%

15%

0%

87,851-183,250

146,401-223,050

125,451-203,150

28%

28%

15%

15%

0%

183,251-398,350

223,051-398,350

203,151-398,350

33%

33%

15%

15%

3.8%

398,351-400,000

398,351-450,000

398,351-425,000

35%

35%

15%

15%

3.8%

450,001-up

425,001-up

39.6%

39.6%

20%

20%

3.8%

Single
$0-8,925

400,001-up

3.8% of the lesser of net investment income or adjusted gross income in excess of $250,000 for MFJ ($200,000 for single or
head of household).
*

10
Be Prepared
• The 16-day government shutdown has
contributed to a late start to this tax filing
season. The IRS expects to begin processing
returns no earlier than January 28 and no
later than February 4.

11

Mais conteúdo relacionado

Mais procurados

2015 Individual Tax Planning Supplement
2015 Individual Tax Planning Supplement2015 Individual Tax Planning Supplement
2015 Individual Tax Planning SupplementCBIZ, Inc.
 
Healthcare| Ontario| | Analysis and Commentary| January 2019
Healthcare|   Ontario| | Analysis and Commentary| January 2019Healthcare|   Ontario| | Analysis and Commentary| January 2019
Healthcare| Ontario| | Analysis and Commentary| January 2019paul young cpa, cga
 
Retirement income 2021
Retirement income 2021Retirement income 2021
Retirement income 2021FinnKevin
 
Canadian Tax Insights: How High Net Worth Investors Should Navigate Today’s T...
Canadian Tax Insights: How High Net Worth Investors Should Navigate Today’s T...Canadian Tax Insights: How High Net Worth Investors Should Navigate Today’s T...
Canadian Tax Insights: How High Net Worth Investors Should Navigate Today’s T...Nicola Wealth
 
ELO Market Outlook Webinar - Presentation Slides
ELO Market Outlook Webinar - Presentation SlidesELO Market Outlook Webinar - Presentation Slides
ELO Market Outlook Webinar - Presentation SlidesCharis Whitbourne
 
Self employment tax-2021
Self employment tax-2021Self employment tax-2021
Self employment tax-2021FinnKevin
 
State of the States: An Analysis of the 2015 Governors’ Addresses
State of the States: An Analysis of the 2015 Governors’ AddressesState of the States: An Analysis of the 2015 Governors’ Addresses
State of the States: An Analysis of the 2015 Governors’ AddressesALEC
 
2017 TORONTO Fall Event - Proposed Tax Reform: What You Need to Know (October...
2017 TORONTO Fall Event - Proposed Tax Reform: What You Need to Know (October...2017 TORONTO Fall Event - Proposed Tax Reform: What You Need to Know (October...
2017 TORONTO Fall Event - Proposed Tax Reform: What You Need to Know (October...Nicola Wealth Management
 
Nicola Wealth Presents Share the Pie: The Art of Building a Winning Culture
Nicola Wealth Presents Share the Pie: The Art of Building a Winning CultureNicola Wealth Presents Share the Pie: The Art of Building a Winning Culture
Nicola Wealth Presents Share the Pie: The Art of Building a Winning CultureNicola Wealth
 
Tax Cuts and Jobs Act: Individual Tax Planning Insight
Tax Cuts and Jobs Act: Individual Tax Planning InsightTax Cuts and Jobs Act: Individual Tax Planning Insight
Tax Cuts and Jobs Act: Individual Tax Planning InsightRea & Associates
 
Tax Consequences of the 2012 Election
Tax Consequences of the 2012 ElectionTax Consequences of the 2012 Election
Tax Consequences of the 2012 ElectionSkoda Minotti
 
2013 Global Relocation Conference: New 2013 Relocation Payroll and Tax Issues
2013 Global Relocation Conference: New 2013 Relocation Payroll and Tax Issues2013 Global Relocation Conference: New 2013 Relocation Payroll and Tax Issues
2013 Global Relocation Conference: New 2013 Relocation Payroll and Tax IssuesOrion Mobility
 
Current Thinking, November/December 2012
Current Thinking, November/December 2012Current Thinking, November/December 2012
Current Thinking, November/December 2012Kevin Lenox
 
Taxes 101: Break Up With Your Fear Of Taxes
Taxes 101: Break Up With Your Fear Of TaxesTaxes 101: Break Up With Your Fear Of Taxes
Taxes 101: Break Up With Your Fear Of TaxesForbes
 

Mais procurados (20)

2015 Individual Tax Planning Supplement
2015 Individual Tax Planning Supplement2015 Individual Tax Planning Supplement
2015 Individual Tax Planning Supplement
 
Healthcare| Ontario| | Analysis and Commentary| January 2019
Healthcare|   Ontario| | Analysis and Commentary| January 2019Healthcare|   Ontario| | Analysis and Commentary| January 2019
Healthcare| Ontario| | Analysis and Commentary| January 2019
 
Retirement income 2021
Retirement income 2021Retirement income 2021
Retirement income 2021
 
Canadian Tax Insights: How High Net Worth Investors Should Navigate Today’s T...
Canadian Tax Insights: How High Net Worth Investors Should Navigate Today’s T...Canadian Tax Insights: How High Net Worth Investors Should Navigate Today’s T...
Canadian Tax Insights: How High Net Worth Investors Should Navigate Today’s T...
 
ELO Market Outlook Webinar - Presentation Slides
ELO Market Outlook Webinar - Presentation SlidesELO Market Outlook Webinar - Presentation Slides
ELO Market Outlook Webinar - Presentation Slides
 
Self employment tax-2021
Self employment tax-2021Self employment tax-2021
Self employment tax-2021
 
Year End Tax Planning
Year End Tax PlanningYear End Tax Planning
Year End Tax Planning
 
2018 IRA Contribution Limit Guide
2018 IRA Contribution Limit Guide2018 IRA Contribution Limit Guide
2018 IRA Contribution Limit Guide
 
2019 2020 tax planning guide
2019 2020 tax planning guide2019 2020 tax planning guide
2019 2020 tax planning guide
 
State of the States: An Analysis of the 2015 Governors’ Addresses
State of the States: An Analysis of the 2015 Governors’ AddressesState of the States: An Analysis of the 2015 Governors’ Addresses
State of the States: An Analysis of the 2015 Governors’ Addresses
 
2017 TORONTO Fall Event - Proposed Tax Reform: What You Need to Know (October...
2017 TORONTO Fall Event - Proposed Tax Reform: What You Need to Know (October...2017 TORONTO Fall Event - Proposed Tax Reform: What You Need to Know (October...
2017 TORONTO Fall Event - Proposed Tax Reform: What You Need to Know (October...
 
Nicola Wealth Presents Share the Pie: The Art of Building a Winning Culture
Nicola Wealth Presents Share the Pie: The Art of Building a Winning CultureNicola Wealth Presents Share the Pie: The Art of Building a Winning Culture
Nicola Wealth Presents Share the Pie: The Art of Building a Winning Culture
 
Tax Cuts and Jobs Act: Individual Tax Planning Insight
Tax Cuts and Jobs Act: Individual Tax Planning InsightTax Cuts and Jobs Act: Individual Tax Planning Insight
Tax Cuts and Jobs Act: Individual Tax Planning Insight
 
Taxing future
Taxing futureTaxing future
Taxing future
 
Tax Consequences of the 2012 Election
Tax Consequences of the 2012 ElectionTax Consequences of the 2012 Election
Tax Consequences of the 2012 Election
 
2013 Global Relocation Conference: New 2013 Relocation Payroll and Tax Issues
2013 Global Relocation Conference: New 2013 Relocation Payroll and Tax Issues2013 Global Relocation Conference: New 2013 Relocation Payroll and Tax Issues
2013 Global Relocation Conference: New 2013 Relocation Payroll and Tax Issues
 
Fpw income taxes
Fpw income taxesFpw income taxes
Fpw income taxes
 
Current Thinking, November/December 2012
Current Thinking, November/December 2012Current Thinking, November/December 2012
Current Thinking, November/December 2012
 
Taxes 101: Break Up With Your Fear Of Taxes
Taxes 101: Break Up With Your Fear Of TaxesTaxes 101: Break Up With Your Fear Of Taxes
Taxes 101: Break Up With Your Fear Of Taxes
 
Income & Estate Tax Planning
Income & Estate Tax PlanningIncome & Estate Tax Planning
Income & Estate Tax Planning
 

Destaque

Year End Tax Planning Tips Individuals 2009
Year End Tax Planning Tips Individuals 2009Year End Tax Planning Tips Individuals 2009
Year End Tax Planning Tips Individuals 2009guest366c4e
 
Tax Planning for High Net Worth Individuals
Tax Planning for High Net Worth IndividualsTax Planning for High Net Worth Individuals
Tax Planning for High Net Worth IndividualsAmy Goold
 
Tax Planning Tips Individuals 2009
Tax Planning Tips Individuals   2009Tax Planning Tips Individuals   2009
Tax Planning Tips Individuals 2009Stambaugh Ness, PC
 
Tax planning for business owners june 2014 Sean Rheubottom - United Financial
Tax planning for business owners june 2014 Sean Rheubottom - United FinancialTax planning for business owners june 2014 Sean Rheubottom - United Financial
Tax planning for business owners june 2014 Sean Rheubottom - United FinancialEstate Planning Council of Abbotsford
 
tax planning for individuals
tax planning for individualstax planning for individuals
tax planning for individualsHina Varshney
 
2013 cch basic principles ch15
2013 cch basic principles ch152013 cch basic principles ch15
2013 cch basic principles ch15dphil002
 

Destaque (8)

Year End Tax Planning Tips Individuals 2009
Year End Tax Planning Tips Individuals 2009Year End Tax Planning Tips Individuals 2009
Year End Tax Planning Tips Individuals 2009
 
Tax Planning for High Net Worth Individuals
Tax Planning for High Net Worth IndividualsTax Planning for High Net Worth Individuals
Tax Planning for High Net Worth Individuals
 
Tax planning 2014 for salaried.
Tax planning 2014 for salaried.Tax planning 2014 for salaried.
Tax planning 2014 for salaried.
 
Tax Planning Tips Individuals 2009
Tax Planning Tips Individuals   2009Tax Planning Tips Individuals   2009
Tax Planning Tips Individuals 2009
 
Tax planning for business owners june 2014 Sean Rheubottom - United Financial
Tax planning for business owners june 2014 Sean Rheubottom - United FinancialTax planning for business owners june 2014 Sean Rheubottom - United Financial
Tax planning for business owners june 2014 Sean Rheubottom - United Financial
 
tax planning for individuals
tax planning for individualstax planning for individuals
tax planning for individuals
 
Tax planning for salaried individuals
Tax planning for salaried individualsTax planning for salaried individuals
Tax planning for salaried individuals
 
2013 cch basic principles ch15
2013 cch basic principles ch152013 cch basic principles ch15
2013 cch basic principles ch15
 

Semelhante a 2013 2014 tax planning for individuals

Year End Tax Planning Tools for the Business Owner
Year End Tax Planning Tools for the Business OwnerYear End Tax Planning Tools for the Business Owner
Year End Tax Planning Tools for the Business OwnerBeth Smith
 
CBIZ Individual Tax Guide 2013
CBIZ Individual Tax Guide 2013CBIZ Individual Tax Guide 2013
CBIZ Individual Tax Guide 2013CBIZ, Inc.
 
Tax Implications of the Affordable Care Act
Tax Implications of the Affordable Care ActTax Implications of the Affordable Care Act
Tax Implications of the Affordable Care ActGrimbleby Coleman CPAs
 
2010 year end tax planning
2010 year end tax planning2010 year end tax planning
2010 year end tax planningdhess0
 
IntroductionComment by Exploring Series This is listed as a Head.docx
IntroductionComment by Exploring Series This is listed as a Head.docxIntroductionComment by Exploring Series This is listed as a Head.docx
IntroductionComment by Exploring Series This is listed as a Head.docxvrickens
 
AFCPE 2018-TCJA Workplace Seminar Presentation
AFCPE 2018-TCJA Workplace Seminar PresentationAFCPE 2018-TCJA Workplace Seminar Presentation
AFCPE 2018-TCJA Workplace Seminar PresentationBarbara O'Neill
 
TCJA Personal and Professional Implications Seminar-04-18
TCJA Personal and Professional Implications Seminar-04-18TCJA Personal and Professional Implications Seminar-04-18
TCJA Personal and Professional Implications Seminar-04-18Barbara O'Neill
 
NJCFE Webinar-TCJA-Income Tax Update
NJCFE  Webinar-TCJA-Income Tax UpdateNJCFE  Webinar-TCJA-Income Tax Update
NJCFE Webinar-TCJA-Income Tax UpdateBarbara O'Neill
 
Bunching Tax Deductions to Maximize Their Benefit
Bunching Tax Deductions to Maximize Their BenefitBunching Tax Deductions to Maximize Their Benefit
Bunching Tax Deductions to Maximize Their BenefitSarah Cuddy
 
2014 General Tax Tips
2014 General Tax Tips2014 General Tax Tips
2014 General Tax TipsPeter Rudolph
 
2016 Federal Budget - Strategies for financial advisers
2016 Federal Budget - Strategies for financial advisers2016 Federal Budget - Strategies for financial advisers
2016 Federal Budget - Strategies for financial advisersnetwealthInvest
 
Six Strategies to Help Retirees Reduce Taxes
 Six Strategies to Help Retirees Reduce Taxes Six Strategies to Help Retirees Reduce Taxes
Six Strategies to Help Retirees Reduce Taxesfreddysaamy
 
Why Are Retirement Plans Such a Great Opportunity?
Why Are Retirement Plans Such a Great Opportunity?Why Are Retirement Plans Such a Great Opportunity?
Why Are Retirement Plans Such a Great Opportunity?Larry Isaacson, CPA
 
Why Are Retirement Plans Such a Great Opportunity?
Why Are Retirement Plans Such a Great Opportunity?Why Are Retirement Plans Such a Great Opportunity?
Why Are Retirement Plans Such a Great Opportunity?Larry Isaacson, CPA
 

Semelhante a 2013 2014 tax planning for individuals (20)

2012 Tax Planning Updates for Real Estate
2012 Tax Planning Updates for Real Estate2012 Tax Planning Updates for Real Estate
2012 Tax Planning Updates for Real Estate
 
CPE Event: Tax Update
CPE Event: Tax Update CPE Event: Tax Update
CPE Event: Tax Update
 
Year End Tax Planning Tools for the Business Owner
Year End Tax Planning Tools for the Business OwnerYear End Tax Planning Tools for the Business Owner
Year End Tax Planning Tools for the Business Owner
 
2015-year end tax report
2015-year end tax report2015-year end tax report
2015-year end tax report
 
2014 tax update
2014 tax update2014 tax update
2014 tax update
 
CBIZ Individual Tax Guide 2013
CBIZ Individual Tax Guide 2013CBIZ Individual Tax Guide 2013
CBIZ Individual Tax Guide 2013
 
2011 Mid-Year Tax Planning
2011 Mid-Year Tax Planning2011 Mid-Year Tax Planning
2011 Mid-Year Tax Planning
 
Tax Implications of the Affordable Care Act
Tax Implications of the Affordable Care ActTax Implications of the Affordable Care Act
Tax Implications of the Affordable Care Act
 
2010 year end tax planning
2010 year end tax planning2010 year end tax planning
2010 year end tax planning
 
IntroductionComment by Exploring Series This is listed as a Head.docx
IntroductionComment by Exploring Series This is listed as a Head.docxIntroductionComment by Exploring Series This is listed as a Head.docx
IntroductionComment by Exploring Series This is listed as a Head.docx
 
AFCPE 2018-TCJA Workplace Seminar Presentation
AFCPE 2018-TCJA Workplace Seminar PresentationAFCPE 2018-TCJA Workplace Seminar Presentation
AFCPE 2018-TCJA Workplace Seminar Presentation
 
TCJA Personal and Professional Implications Seminar-04-18
TCJA Personal and Professional Implications Seminar-04-18TCJA Personal and Professional Implications Seminar-04-18
TCJA Personal and Professional Implications Seminar-04-18
 
NJCFE Webinar-TCJA-Income Tax Update
NJCFE  Webinar-TCJA-Income Tax UpdateNJCFE  Webinar-TCJA-Income Tax Update
NJCFE Webinar-TCJA-Income Tax Update
 
Bunching Tax Deductions to Maximize Their Benefit
Bunching Tax Deductions to Maximize Their BenefitBunching Tax Deductions to Maximize Their Benefit
Bunching Tax Deductions to Maximize Their Benefit
 
Tax Tips
Tax TipsTax Tips
Tax Tips
 
2014 General Tax Tips
2014 General Tax Tips2014 General Tax Tips
2014 General Tax Tips
 
2016 Federal Budget - Strategies for financial advisers
2016 Federal Budget - Strategies for financial advisers2016 Federal Budget - Strategies for financial advisers
2016 Federal Budget - Strategies for financial advisers
 
Six Strategies to Help Retirees Reduce Taxes
 Six Strategies to Help Retirees Reduce Taxes Six Strategies to Help Retirees Reduce Taxes
Six Strategies to Help Retirees Reduce Taxes
 
Why Are Retirement Plans Such a Great Opportunity?
Why Are Retirement Plans Such a Great Opportunity?Why Are Retirement Plans Such a Great Opportunity?
Why Are Retirement Plans Such a Great Opportunity?
 
Why Are Retirement Plans Such a Great Opportunity?
Why Are Retirement Plans Such a Great Opportunity?Why Are Retirement Plans Such a Great Opportunity?
Why Are Retirement Plans Such a Great Opportunity?
 

Último

Instant Issue Debit Cards - School Designs
Instant Issue Debit Cards - School DesignsInstant Issue Debit Cards - School Designs
Instant Issue Debit Cards - School Designsegoetzinger
 
Solution Manual for Financial Accounting, 11th Edition by Robert Libby, Patri...
Solution Manual for Financial Accounting, 11th Edition by Robert Libby, Patri...Solution Manual for Financial Accounting, 11th Edition by Robert Libby, Patri...
Solution Manual for Financial Accounting, 11th Edition by Robert Libby, Patri...ssifa0344
 
The Economic History of the U.S. Lecture 30.pdf
The Economic History of the U.S. Lecture 30.pdfThe Economic History of the U.S. Lecture 30.pdf
The Economic History of the U.S. Lecture 30.pdfGale Pooley
 
The Economic History of the U.S. Lecture 20.pdf
The Economic History of the U.S. Lecture 20.pdfThe Economic History of the U.S. Lecture 20.pdf
The Economic History of the U.S. Lecture 20.pdfGale Pooley
 
Call Girls Service Nagpur Maya Call 7001035870 Meet With Nagpur Escorts
Call Girls Service Nagpur Maya Call 7001035870 Meet With Nagpur EscortsCall Girls Service Nagpur Maya Call 7001035870 Meet With Nagpur Escorts
Call Girls Service Nagpur Maya Call 7001035870 Meet With Nagpur Escortsranjana rawat
 
VIP Call Girls Service Dilsukhnagar Hyderabad Call +91-8250192130
VIP Call Girls Service Dilsukhnagar Hyderabad Call +91-8250192130VIP Call Girls Service Dilsukhnagar Hyderabad Call +91-8250192130
VIP Call Girls Service Dilsukhnagar Hyderabad Call +91-8250192130Suhani Kapoor
 
TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Weste...
TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Weste...TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Weste...
TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Weste...ssifa0344
 
Malad Call Girl in Services 9892124323 | ₹,4500 With Room Free Delivery
Malad Call Girl in Services  9892124323 | ₹,4500 With Room Free DeliveryMalad Call Girl in Services  9892124323 | ₹,4500 With Room Free Delivery
Malad Call Girl in Services 9892124323 | ₹,4500 With Room Free DeliveryPooja Nehwal
 
CALL ON ➥8923113531 🔝Call Girls Gomti Nagar Lucknow best sexual service
CALL ON ➥8923113531 🔝Call Girls Gomti Nagar Lucknow best sexual serviceCALL ON ➥8923113531 🔝Call Girls Gomti Nagar Lucknow best sexual service
CALL ON ➥8923113531 🔝Call Girls Gomti Nagar Lucknow best sexual serviceanilsa9823
 
The Economic History of the U.S. Lecture 21.pdf
The Economic History of the U.S. Lecture 21.pdfThe Economic History of the U.S. Lecture 21.pdf
The Economic History of the U.S. Lecture 21.pdfGale Pooley
 
20240429 Calibre April 2024 Investor Presentation.pdf
20240429 Calibre April 2024 Investor Presentation.pdf20240429 Calibre April 2024 Investor Presentation.pdf
20240429 Calibre April 2024 Investor Presentation.pdfAdnet Communications
 
VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...
VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...
VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...Suhani Kapoor
 
VVIP Pune Call Girls Katraj (7001035870) Pune Escorts Nearby with Complete Sa...
VVIP Pune Call Girls Katraj (7001035870) Pune Escorts Nearby with Complete Sa...VVIP Pune Call Girls Katraj (7001035870) Pune Escorts Nearby with Complete Sa...
VVIP Pune Call Girls Katraj (7001035870) Pune Escorts Nearby with Complete Sa...Call Girls in Nagpur High Profile
 
The Economic History of the U.S. Lecture 17.pdf
The Economic History of the U.S. Lecture 17.pdfThe Economic History of the U.S. Lecture 17.pdf
The Economic History of the U.S. Lecture 17.pdfGale Pooley
 
Dharavi Russian callg Girls, { 09892124323 } || Call Girl In Mumbai ...
Dharavi Russian callg Girls, { 09892124323 } || Call Girl In Mumbai ...Dharavi Russian callg Girls, { 09892124323 } || Call Girl In Mumbai ...
Dharavi Russian callg Girls, { 09892124323 } || Call Girl In Mumbai ...Pooja Nehwal
 
The Economic History of the U.S. Lecture 18.pdf
The Economic History of the U.S. Lecture 18.pdfThe Economic History of the U.S. Lecture 18.pdf
The Economic History of the U.S. Lecture 18.pdfGale Pooley
 
The Economic History of the U.S. Lecture 26.pdf
The Economic History of the U.S. Lecture 26.pdfThe Economic History of the U.S. Lecture 26.pdf
The Economic History of the U.S. Lecture 26.pdfGale Pooley
 
02_Fabio Colombo_Accenture_MeetupDora&Cybersecurity.pptx
02_Fabio Colombo_Accenture_MeetupDora&Cybersecurity.pptx02_Fabio Colombo_Accenture_MeetupDora&Cybersecurity.pptx
02_Fabio Colombo_Accenture_MeetupDora&Cybersecurity.pptxFinTech Belgium
 
Log your LOA pain with Pension Lab's brilliant campaign
Log your LOA pain with Pension Lab's brilliant campaignLog your LOA pain with Pension Lab's brilliant campaign
Log your LOA pain with Pension Lab's brilliant campaignHenry Tapper
 
(DIYA) Bhumkar Chowk Call Girls Just Call 7001035870 [ Cash on Delivery ] Pun...
(DIYA) Bhumkar Chowk Call Girls Just Call 7001035870 [ Cash on Delivery ] Pun...(DIYA) Bhumkar Chowk Call Girls Just Call 7001035870 [ Cash on Delivery ] Pun...
(DIYA) Bhumkar Chowk Call Girls Just Call 7001035870 [ Cash on Delivery ] Pun...ranjana rawat
 

Último (20)

Instant Issue Debit Cards - School Designs
Instant Issue Debit Cards - School DesignsInstant Issue Debit Cards - School Designs
Instant Issue Debit Cards - School Designs
 
Solution Manual for Financial Accounting, 11th Edition by Robert Libby, Patri...
Solution Manual for Financial Accounting, 11th Edition by Robert Libby, Patri...Solution Manual for Financial Accounting, 11th Edition by Robert Libby, Patri...
Solution Manual for Financial Accounting, 11th Edition by Robert Libby, Patri...
 
The Economic History of the U.S. Lecture 30.pdf
The Economic History of the U.S. Lecture 30.pdfThe Economic History of the U.S. Lecture 30.pdf
The Economic History of the U.S. Lecture 30.pdf
 
The Economic History of the U.S. Lecture 20.pdf
The Economic History of the U.S. Lecture 20.pdfThe Economic History of the U.S. Lecture 20.pdf
The Economic History of the U.S. Lecture 20.pdf
 
Call Girls Service Nagpur Maya Call 7001035870 Meet With Nagpur Escorts
Call Girls Service Nagpur Maya Call 7001035870 Meet With Nagpur EscortsCall Girls Service Nagpur Maya Call 7001035870 Meet With Nagpur Escorts
Call Girls Service Nagpur Maya Call 7001035870 Meet With Nagpur Escorts
 
VIP Call Girls Service Dilsukhnagar Hyderabad Call +91-8250192130
VIP Call Girls Service Dilsukhnagar Hyderabad Call +91-8250192130VIP Call Girls Service Dilsukhnagar Hyderabad Call +91-8250192130
VIP Call Girls Service Dilsukhnagar Hyderabad Call +91-8250192130
 
TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Weste...
TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Weste...TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Weste...
TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Weste...
 
Malad Call Girl in Services 9892124323 | ₹,4500 With Room Free Delivery
Malad Call Girl in Services  9892124323 | ₹,4500 With Room Free DeliveryMalad Call Girl in Services  9892124323 | ₹,4500 With Room Free Delivery
Malad Call Girl in Services 9892124323 | ₹,4500 With Room Free Delivery
 
CALL ON ➥8923113531 🔝Call Girls Gomti Nagar Lucknow best sexual service
CALL ON ➥8923113531 🔝Call Girls Gomti Nagar Lucknow best sexual serviceCALL ON ➥8923113531 🔝Call Girls Gomti Nagar Lucknow best sexual service
CALL ON ➥8923113531 🔝Call Girls Gomti Nagar Lucknow best sexual service
 
The Economic History of the U.S. Lecture 21.pdf
The Economic History of the U.S. Lecture 21.pdfThe Economic History of the U.S. Lecture 21.pdf
The Economic History of the U.S. Lecture 21.pdf
 
20240429 Calibre April 2024 Investor Presentation.pdf
20240429 Calibre April 2024 Investor Presentation.pdf20240429 Calibre April 2024 Investor Presentation.pdf
20240429 Calibre April 2024 Investor Presentation.pdf
 
VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...
VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...
VIP Call Girls LB Nagar ( Hyderabad ) Phone 8250192130 | ₹5k To 25k With Room...
 
VVIP Pune Call Girls Katraj (7001035870) Pune Escorts Nearby with Complete Sa...
VVIP Pune Call Girls Katraj (7001035870) Pune Escorts Nearby with Complete Sa...VVIP Pune Call Girls Katraj (7001035870) Pune Escorts Nearby with Complete Sa...
VVIP Pune Call Girls Katraj (7001035870) Pune Escorts Nearby with Complete Sa...
 
The Economic History of the U.S. Lecture 17.pdf
The Economic History of the U.S. Lecture 17.pdfThe Economic History of the U.S. Lecture 17.pdf
The Economic History of the U.S. Lecture 17.pdf
 
Dharavi Russian callg Girls, { 09892124323 } || Call Girl In Mumbai ...
Dharavi Russian callg Girls, { 09892124323 } || Call Girl In Mumbai ...Dharavi Russian callg Girls, { 09892124323 } || Call Girl In Mumbai ...
Dharavi Russian callg Girls, { 09892124323 } || Call Girl In Mumbai ...
 
The Economic History of the U.S. Lecture 18.pdf
The Economic History of the U.S. Lecture 18.pdfThe Economic History of the U.S. Lecture 18.pdf
The Economic History of the U.S. Lecture 18.pdf
 
The Economic History of the U.S. Lecture 26.pdf
The Economic History of the U.S. Lecture 26.pdfThe Economic History of the U.S. Lecture 26.pdf
The Economic History of the U.S. Lecture 26.pdf
 
02_Fabio Colombo_Accenture_MeetupDora&Cybersecurity.pptx
02_Fabio Colombo_Accenture_MeetupDora&Cybersecurity.pptx02_Fabio Colombo_Accenture_MeetupDora&Cybersecurity.pptx
02_Fabio Colombo_Accenture_MeetupDora&Cybersecurity.pptx
 
Log your LOA pain with Pension Lab's brilliant campaign
Log your LOA pain with Pension Lab's brilliant campaignLog your LOA pain with Pension Lab's brilliant campaign
Log your LOA pain with Pension Lab's brilliant campaign
 
(DIYA) Bhumkar Chowk Call Girls Just Call 7001035870 [ Cash on Delivery ] Pun...
(DIYA) Bhumkar Chowk Call Girls Just Call 7001035870 [ Cash on Delivery ] Pun...(DIYA) Bhumkar Chowk Call Girls Just Call 7001035870 [ Cash on Delivery ] Pun...
(DIYA) Bhumkar Chowk Call Girls Just Call 7001035870 [ Cash on Delivery ] Pun...
 

2013 2014 tax planning for individuals

  • 1. 2013 4th Quarter Tax Planning Tips for Individuals www.nexus-financial.com
  • 2. Introduction • Contrary to popular belief, tax planning is really a simple task that should be undertaken each year. Begin with anticipating your gross income for the year as well as allowable deductions to determine your tax bracket and income thresholds that will either limit your ability to take advantage of deductions and/or credits, or trigger higher and/or additional taxes. Once you can estimate what your income taxes will look like, you can then evaluate which strategies will serve you best when its time to file your taxes. Outlined in this presentation are actions you can take to minimize tax liability. 2
  • 3. 4th Quarter Tax Planning Tips • • • • Know your tax rate. Although 2013 ordinary federal income tax rates will stay the same, higher income individuals’ tax brackets have increased from 35% to 39.6%. (The high-income individual tax rate is higher than the corporate tax rate of 35%.) Leverage itemized deductions. Alternate year-to-year between taking the standard deduction with “bunching” miscellaneous itemized deductible expenditures, medical expenses and other itemized deductions. Defer income. If you expect to be in the same or lower tax bracket in 2014, it is wise to defer as much income as possible to next year. • Ask your employer to defer a bonus that may be coming your way until 2014. Time investment gains and losses. Selling appreciated securities before year end may be a smart tax strategy. • Long-term capital gains are taxed at 0% for taxpayers in the 15% tax bracket. Capital losses can be used to offset capital gains and reduce other income up to $3,000. 3
  • 4. • Take advantage of tax breaks. For those age 70 ½ make taxfree charitable contributions from your required IRA distributions. Special rules apply. • Use it or lose it. “Spend down” flexible spending accounts before the balances expire. Contribution limits capped at $2,500 this year. • Calculate and estimate carefully. Increase the amount you set aside next year in your employer’s health flexible spending account if you set aside too little this year. • Adjust elective deferral plans at work. Maximum deferral for 2013 is $17,500. This increases to $23,000 for taxpayers age 50 and over. • New taxes in effect. Effective for the first time in 2013 are a 3.8% Medicare Investment Tax, a surtax on net investment income and the 0.9% Medicare Health Insurance Tax, a payroll tax on wages and self employment income. These taxes affect high-income taxpayers. 4
  • 5. • Maximize tax credits, deductions and exclusions which will sunset unless extended by an act of Congress. Among these are: • Make energy-saving improvements to your home or purchase energy-efficient appliances; • Above-the-line deduction for $250 unreimbursed, out-ofpocket expenses of grades K-12 teachers, instructors, counselors, principals and aides; • Choice between general sales tax deduction or deduction for state and local income tax deduction; • Above-the-line qualified higher education tuition and fees deduction; • Deduction for mortgage insurance premiums as qualified home mortgage interest if AGI is not more than $109,000; and • Cancellation of principal residence debt can be excluded from gross income this year if discharged because of change in financial condition or decline in value of residence. 5
  • 6. • Note the new rules. • Rules for home office deductions have changed allowing for a more simplified option for a maximum standard $1,500 deduction. • Depreciation rules have changed resulting in many refundable credits disappearing. • Prepay expenses. Consider using a credit card to prepay expenses that can generate deductions for this year. • Increase withholding. If you expect to owe state and local income taxes, consider asking your employer to increase withholding of state and local taxes before year-end to pull the deduction of those taxes into 2013. • Accelerate purchases. Make big ticket purchases before year end in order to assure a deduction for sales taxes on the purchases if you elect to claim a state and local general sales tax deduction instead of a state and local income tax deduction. This choice won’t be available after 2013. 6
  • 7. • Familiarize yourself the Affordable Care Act. This new legislation may have an impact on your tax status and liability in 2014. Among other things, • The Act raises the income threshold this year to 10% of AGI for taxpayers 65 and under. You may need to defer medical bills to lump expenses in a single year to get the deduction. • Mandate and requirement to have coverage or pay a penalty. • Greater of $695 per year up to a maximum of $2,085 per family or 2.5% of household income • Phase in: $95 in 2014, $325 in 2015 and $695 in 2016 for the flat fee of 1% of taxable income in 2014, 2% of taxable income in 2015, and 2.5% of taxable income in 2016 7
  • 8. Other Provisions • The tax credit for new energy-efficient homes is set to expire • The monthly exclusion for transit passes and vanpooling will change • New capital gains and qualified dividends rate took effect in 2013. • Maximum rate on long-term gains increased from 15% to 20% and now also applies to dividends. • Same-sex couples who are legally married will be recognized by the federal government • Able to file joint federal tax return this tax season • Able to file amended returns for previous tax years 8
  • 9. Standard Deduction Increase • For taxable years beginning in 2013, the standard deduction amounts, adjusted for inflation, are as follows: Filing Status Standard Deduction Married Filing Jointly and Surviving Spouses $12,200 Head of Household $8,950 Single $6,100 Married Filing Separately $6,100 Aged or blind – (additional $1,200 deduction) Aged or blind, unmarried and not a surviving spouse – (additional deduction) $1,500 9
  • 10. Current Tax Rate Table Taxable Income Tax Rate [Bracket] Married Filing Jointly Head of Household Ordinary Income Short-term Capital Gain Long-term Capital Gain Qualified Dividend NIIT Tax* $0-17,850 $0-12,750 10% 10% 0% 0% 0% 8,926-36,250 17,851-72,500 12,751-48,600 15% 15% 0% 0% 0% 36,251-87,850 72,501-146,400 48,601-125,450 25% 25% 15% 15% 0% 87,851-183,250 146,401-223,050 125,451-203,150 28% 28% 15% 15% 0% 183,251-398,350 223,051-398,350 203,151-398,350 33% 33% 15% 15% 3.8% 398,351-400,000 398,351-450,000 398,351-425,000 35% 35% 15% 15% 3.8% 450,001-up 425,001-up 39.6% 39.6% 20% 20% 3.8% Single $0-8,925 400,001-up 3.8% of the lesser of net investment income or adjusted gross income in excess of $250,000 for MFJ ($200,000 for single or head of household). * 10
  • 11. Be Prepared • The 16-day government shutdown has contributed to a late start to this tax filing season. The IRS expects to begin processing returns no earlier than January 28 and no later than February 4. 11