Taxpayers in 2014 don't have to worry about a lot of tax surprises. The American Taxpayer Relief Act of 2012 enacted on Jan. 2, 2013, made many existing tax laws permanent and extended other provisions through 2013. But even in the most stable tax and political environments, there's always something to worry about when it comes to taxes. Here are 10 tax traps you need to watch out for in 2014.
2. 10 NEW TAX TRAPS TO WATCH
OUT FOR 2014
Taxpayers in 2014 don't have to worry about a lot of
tax surprises. The American Taxpayer Relief Act of
2012 enacted on Jan. 2, 2013, made many existing
tax laws permanent and extended other provisions
through 2013. But even in the most stable tax and
political environments, there's always something to
worry about when it comes to taxes. Here are 10
tax traps you need to watch out for in 2014.
3. 10 NEW TAX TRAPS
1. Get ready to wait early in the year.
The federal government shut down for 16 days last October, but taxpayers are still paying for
it. The IRS says Jan. 31, 2014, is the earliest it will be ready to process individual tax returns. You
can go ahead and submit your return electronically as soon as you're ready; your e-filer will
hold it until the IRS is ready to accept returns.
2. Get ready to wait later in the year.
Every year or so, some temporary tax provisions are renewed by Congress. In recent
years, however, lawmakers have let the laws expire and then renewed them
retroactively, most recently in the American Taxpayer Relief Act of 2012, also known as
the "fiscal cliff" tax bill. Expect a replay in 2014.
3. Watch for added taxes if you're wealthy.
The American Taxpayer Relief Act of 2012 was not kind to wealthier taxpayers, and they will
find out the extent of the damage when they file their 2013 returns.
4. 4. Sign up for medical insurance.
The Affordable Care Act will continue to roll out in 2014, meaning that uninsured individuals have
some choices to make that could have tax implications. Enrollment for health insurance under
Obamacare, as the health reform act is popularly known, goes through March 31, 2014.
5. File jointly if you're a same-sex married couple.
Married same-sex couples now have the same federal tax filing responsibilities as heterosexual
couples. Following the Supreme Court invalidation of the Defense of Marriage Act, the IRS
instructed same-sex married couples to file jointly or as a married couple filing separately even
if the state where they live does not recognize their marriage.
6. Claim the simplified home office deduction.
The recession has prompted many workers to start their own businesses, many of which are run from
their homes. There's good filing news for these entrepreneurs.
5. Continue read for
the rest 5 new tax
traps to watch out
for 2014
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