Tax Tips

taxes

Important Tax Facts

IRS Announces 2013 Standard Mileage Rates

The standard mileage rate is used to calculate the deductible costs of operating an automobile for business, charitable, medical and moving purposes. Beginning on January 1, 2013 the new rate will be: $ .56 and 1/2 cents per mile for business miles. $ .24 cents per mile for medical and moving expenses and $ .14 cents per mile driven in service of charitable organizations.

New Tax Law Changes:

After tough negotiations, Congress and the President agreed on tax rate changes to save us from the “fiscal cliff”, restoring the 6.2% deduction for FICA tax for employees, Increasing the Federal Estate Tax exemption to $ 5.25 Million dollars and a host of other goodies!

IRS Announces 2013 IRA Dollar Limits:

For 2013 the maximum IRA contribution increases to $ 5,500 with an extra $ 1,000 for catch up contribution if you are over the age of 50.

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Do I have to file a tax return?

Federal Income Tax Withheld You should file to get money back if Federal Income Tax was withheld from your pay, you made estimated tax payments, or had a prior year overpayment applied to this year’s tax.

Making Work Pay Credit You may be able to take this credit if you had earned income from work. The maximum credit for a married couple filing a joint return is $800 and $400 for other taxpayers.

Earned Income Tax Credit You may qualify for EITC if you worked, but did not earn a lot of money.EITC is a refundable tax credit; which means you could qualify for a tax refund.

Additional Child Tax Credit This refundable credit may be available to you if you have at least one qualifying child and you did not get the full amount of the Child Tax Credit.

American Opportunity Credit The maximum credit per student is $2,500 and the first four years of postsecondary education qualify.

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