Higher Wage Base—No surprise: The Social Security wage base has increased again to $117,000 in 2014 (up from $113,700 in 2013). At least the tax rate for employers and employees remains the same at 7.65% on amounts up to the base and 1.45% above that. Another payroll factor: A 0.9% Medicare surtax applies to single…
How do you separate interest expenses on your 2013 tax return? There are four main categories for taxpayers to consider. (Technically, there are several other types of “interest” in the tax law.) Here is how it breaks down. 1. Personal interest: If an interest expense does not fall into one of the other three categories,…
Don’t be fooled by the term commonly used to describe an extra tax liability a family may have to pay. The so-called “kiddie tax” is not limited to children in diapers or even those in the lowest school grades. It may continue to apply to children well into their 20s. Fortunately, there are several ways…
Remember those generous personal and dependency exemptions you have claimed in the past? Under new rules taking effect on 2013 federal income tax returns, exemptions are reduced for certain high-income taxpayers. However, depending on your circumstances, you may still be in line for a significant tax break. Basic rules:For starters, every taxpayer is entitled to…
