Make us your home page
Instagram

Early preparation can ease 2013 tax filing burden

The last thing taxpayers are probably thinking about is tax season. But anyone hoping to position themselves well for an interesting tax year should probably give it some thought.

"For the last several years, Congress has given the taxpayers and the tax community these little jolts. They are at the point where they are making up tax laws for the year that has passed," said Merry Brodie, with Brodie Accounting Services.

Here are some things Brodie says taxpayers can do right now to get ready:

Get organized. Start gathering receipts and other items needed to support your 2013 returns. Day care receipts, health expenses and pay stubs all act as supporting documents for your returns.

Review the past. Sit with your old tax returns and current pay stubs and do an estimated tax return for 2013. If you can't do it yourself, spend about $50 to have a professional do it for you, Brodie said. The objective is to get an early idea of your tax liability so you can make proper adjustments.

Spend money to save money. "Everybody wants to save money on taxes and it takes money to save money," Brodie said. Actions such as increasing your 401(k) payments in these next few months or allocating money next year to medical reimbursement or dependent care accounts require you to pay pre-tax money, but they also lower your adjusted gross income, or AGI. The lower your AGI, the less you owe the government. You may even be able to do something as simple as adjust the withholding on your last few paychecks of the year to help bring your tax payments in line with your tax liability.

Be generous. Charitable donations can help you reduce taxes owed as long as you itemize your return. But be warned: A few $25 donations and a couple of Goodwill receipts are probably not going to help you much, Brodie said.

Know the law and act accordingly. It helps to be aware of tax law changes in any given year. In 2013, for example, higher-income individuals — singles with income of $200,000 or more or couples filing jointly with income of $250,000 or more — will pay more taxes.

The minimum for medical expense deductions for anyone under 65 increases from 7.5 percent to 10 percent of income, which means fewer people will qualify. In addition, the forgiveness debt on home foreclosures, sales tax deduction, private mortgage insurance deduction, teacher's classroom supplies deduction, tuition and fees deduction, and residential energy tax credit are only good for 2013. Taking action in these areas before the end of the year will put you in a position to take those deductions.

Consider the power of three. There is nothing wrong with doing your own taxes, Brodie said, but every three years it's a good idea to have an enrolled agent — a professional qualified to represent taxpayers before the Internal Revenue Service — complete or review your work. That way, if you missed something, you will still have time to file an amended return.

Early preparation can ease 2013 tax filing burden 12/20/13 [Last modified: Friday, December 20, 2013 6:08pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Tribune News Service.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. Grocery chain Aldi hosting hiring event in Brandon Aug. 24

    Retail

    BRANDON — German grocery chain Aldi is holding a hiring event for its Brandon store Aug. 24. It is looking to fill store associate, shift manager and manager trainee positions.

  2. Lightning owner Jeff Vinik backs film company pursuing global blockbusters

    Corporate

    TAMPA — Jeff Vinik's latest investment might be coming to a theater near you.

    Jeff Vinik, Tampa Bay Lightning owner, invested in a new movie company looking to appeal to a global audience. | [Times file photo]
  3. Trigaux: Look to new Inc. 5000 rankings for Tampa Bay's future heavyweights

    Business

    There's a whole lotta fast-growing private companies here in Tampa Bay. Odds are good you have not heard of most of them.

    Yet.

    Kyle Taylor, CEO and founder of The Penny Hoarder, fills a glass for his employees this past Wednesday as the young St. Petersburg personal advice business celebrates its landing at No. 25 on the 2017 Inc. 5000 list of the fastest growing private companies in the country. Taylor, still in his 20s, wins kudos from executive editor Alexis Grant for keeping the firm's culture innovative. The business ranked No. 32 last year. [DIRK SHADD   |   Times]
  4. Ford's Garage opens new Westchase spot

    Business

    Ford's Garage opened its sixth Florida location in Westchase this week.

    hillsevbiz081817: Ford's Garage opened its sixth Florida location in Westchase this week. Photo courtesy of Ford's Garage
  5. Carls Patio celebrates great outdoor furnishings in Carrollwood

    Business

    CARROLLWOOD — While many northerners are shoveling snow, Floridians are lounging poolside in the middle of winter.

    hillsevbiz081817: After selling outdoor and patio furniture in locations in South Florida since 1993, Carls Patio has opened its first store to open in the Tampa Bay area and there are plans for more. Photo courtesy of Carls Patio.