Many people are already anticipating the need to get their taxes in order, after all, April 15th comes pretty quick. For those who have done taxes in the past, history has shown that the folks in Washington are forever making changes to the tax laws. As with many years in the past, changes will likely occur in the way we process those returns, however the biggest change will be the start date which has been moved to January 31st, 2014.
So what do you need to know about filing your taxes this year? Well, there are a few things that you should take into consideration:
The new start date will not be the only adjustment we should expect to see, we can also look forward to higher taxes for those lucky enough to be making over 250,000, or less tax cuts, depending on how you choose to look at it. You may not have to consider it in your 2014 tax returns, but those who were receiving mortgage debt forgiveness will no longer be able to do so after January 1st.
2014 will see a few other deductions being removed from the table, like the possibility of deducting sales tax for those living in states without any state taxes. Florida is one such state that residents have made such a claim in the past, and those deductions can end up in the billions for taxpayers. After the first of the year, that deduction will no longer be available.
With the late start of the Internal Revenue Service tax season you would think that the entire tax season should be moved forward, that will not be the case, taxpayers will be expected to have their taxes completed by the usual April 15th Deadline. Taxpayers who have been accustomed to submitting their returns as soon as they receive their employer documents may do so; however paper returns will not be looked at until the official start of the tax season.
If the taxpayer expects to receive a refund, they are being advised to submit their returns through e-filing as this will facilitate an earlier refund date. We can thank the government shutdown in 2013 for the late start in preparing refunds for taxpayers, as we can also offer our congratulatory remarks to Congress for changes being enacted in other aspects of the tax laws. Regardless of when the IRS decides to get rolling, as taxpayers we should always be prepared with our documentation.
Taxpayers lose opportunities to reduce their tax liability through missed deductions, a fact that can usually be rectified through a competent tax preparer, such as H&R Block, Jackson Hewitt, or a small local tax preparation office. Some taxpayers believe that they can save money by processing the returns for themselves, a fact that might be unrealistic, especially if the taxpayer has not done their homework. So, now itâ€™s time to get your paperwork in order, keep your receipts, and separate your business from personal expenses.
Lauralynn Schueckler is the Online Marketing Specialist at Advantage Credit Counseling Service. She is the author for Advantage CCSâ€™s Blog called Dollars & Sense. Advantage Credit Counseling Service is a member of the National Foundation for Credit Counseling. Contact Advantage Credit Counseling at 866.699.2227, or visit them online at www.advantageccs.org.
Views expressed are the personal views of the author, and do not represent the views of the National Foundation for Credit Counseling, its employees, its members, or its clients.