Standard deductions go up, but the ceiling for itemized deductions go down in 2013, plus other changes that will affect your taxes this year.
The Internal Revenue Service announced annual inflation adjustments for tax year 2013, including the tax rate schedules, and other tax changes from the recently passed American Taxpayer Relief Act of 2012. The tax items for 2013 of greatest interest to most taxpayers include the following changes. Details on these inflation adjustments and others are contained in Revenue Procedure 2013-15, which will be published in Internal Revenue Bulletin 2013-5 on Jan.28, 2013. Other inflation adjusted items were published in October 2012 in Revenue Procedure 2012-41. -News release from the Internal Revenue Service "Like" us on Facebook | Follow us Twitter | Get "Patched" in with our newsletter | Start a blog
Some lawmakers are in Washington, DC this weekend, trying to hammer out a last-minute deal to avoid the fiscal cliff, but if they don't, average citizens might feel the impact.
Our nation is less than two days from going over the "fiscal cliff"—and the compromise clock is ticking loudly. Senate leaders worked toward a last-minute compromise on Saturday to avoid middle-class tax increases and possibly prevent deep spending cuts, such as a 27 percent fee cut for doctors who treat Medicare patients. Tax Policy Center, a nonpartisan think tank, predicts that nearly 90 percent of households would be affected if Congressional leaders fail to reach a compromise before the Jan. 1 deadline. Among the impacts to average citizens: Those things would hit people in the wallet, which in turn has the potential to adversely affect our already-weak economy. Federal Reserve Chairman Ben Bernanke has said the combination of tax …