There are a number of tax provisions due to expire 12/31/2013. Here is a list of the provisions that affect most taxpayers
$250 deduction for educators expenses - deductible as an adjustment to income. Going forward the expenses will be deducted as an iitemized deduction subject to some income limitations.
$500 Energy Credit
Tuition and Fees Deduction for postsecondary education expenses
Sales tax deduction
Mortgage insurance premium deduction
Exclusion of income from cancellation of debt on a personal residence
Direct transfer of IRA money to charity for persons 70 1/2 and older
50% bonus depreciation
It isn't out of the question for Congress to vote to extend provisions such as these - we will try to keep you updated.
Here are some Inflation Adjustment Updates for 2013
IRA Contribution Limits 5,500
Catch-up Contribution (age 50 or older) 1,000
Simple IRA Plan 12,000
Catch-up Contribution (age 50 or older) 2,500
401(k), 403 (b), 457 Contribution Limits 17,500
Catch-up Contribution (age 50 or older) 5,500
Other information to note:
There are no income limitations that prevent taxpayers from converting their traditional IRAs to Roth IRAs.
For 2013 the mileage rate for business travel is 56.5 cents per mile. For 2014 the rate decreases to 56 cents per mile.
For 2013 there are surtaxes that will affect single filers with modified adjusted gross incomes above $200,000 and of couples over $250,000. Marrieds filing separately get a threshold of $125,000. The rates are .9% of earned income and 3.8% on investment income.
Maximum Earnings Limit and still receive full Social Security benefits if under full retirement age is $15,480 for 2014
The 2013 Minnesota Omnibus Tax Bill did not include provisions to conform to changes the Federal Government made with the American Taxpayer Relief Act of 2012 therefore the Minnesota return will be more complicated for 2013.
In a ruling issued two months after the U.S. Supreme Court struck down Section 3 of the Defense of Marriage Act the IRS recognized all same-sex marriages that were legally entered into in one of the 50 states, D.C., a U.S. territory, or foreign country.
Minnesota became one of 15 states that now recognize same-sex marriage.
New tax brackets were added to both Federal and State of Minnesota - a 39.6% bracket on Federal and a 9.85% bracket on Minnesota (that adds up to 49.45% !! ouch!!)