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QC02122015

20 THE QUEENS COURIER • FEBRUARY 12, 2015 FOR BREAKING NEWS VISIT www.queenscourier.com tax tips NEW STANDARD DEDUCTION FOR 2014 TAX YEAR BY BARRY LISAK When fi ling your Federal income tax return, taxpayers can choose to either take the standard deduction or to itemize their deductions. About two out of every three income-tax returns claim the standard deduction. Whether to itemize deductions on your tax return depends on how much you spent on certain expenses last year. Money paid for medical care, mortgage interest, taxes, charitable contributions, casualty losses and miscellaneous deductions can reduce your taxes. It the total amount spent on those categories is more than your standard deduction, you can usually benefi t by itemizing. Unfortunately, many taxpayers get it wrong. Failing to itemize personal deductions is the single biggest mistake people make when doing their taxes. According to a Government Accountability Offi ce report, as many as 2.2 million taxpayers overpay their taxes by an average of $610 per year because they fail to itemize their deductions. 1. Standard deduction amounts are based on your fi ling status and are subject to infl ation adjustments each year. For 2013, they are: Single $6,200 Married Filing Jointly $12,400 Head of Household $9,100 Married Filing Separately $6,200 Qualifying Widow(er) $12,400 2. The IRS has larger standard deduction amounts for taxpayers age 65 or older. As an aside, the IRS considers you 65 on the day before your birthday. So, if your birthday is January 1, 2015 you are considered age 65 for the 2014 tax-fi ling year. In addition, there is a similar break for the blind, regardless of age. The additional amount for blindness will be allowed if you or your spouse is totally or partly blind on the last day of the year. The tax code defi nes “partly-blind” as having a fi eld vision of no more than 20 degrees or corrected vision better than 20/200; you’ll need a certifi ed statement from an eye doctor backing up your claim. For example, a younger single fi ler gets a standard deduction on his 2014 return of $6,200. A single senior fi ler’s amount is $7,750, an extra $1,550. If the older taxpayer also is blind, then his standard deduction jumps to $9,300. Likewise, an older husband and his older wife can claim a standard deduction of $14,800. That’s $2,400 more than a younger married couple can deduct. 3. If you are married fi ling separately, you and your spouse must both take the standard deduction or you must both itemize your deductions. You cannot mix-and-match (where one spouse itemizes and the other take the standard deduction). As such, it usually makes sense to fi gure your taxes both ways, to see which will yield the best overall tax savings. 4. If you can be claimed as a dependent on another person’s tax return, the amount of your standard deduction is reduced. Generally, the amount of the standard deduction is limited to the greater of $1,000 or your earned income for the year plus $350. 5. Some taxpayers are not eligible for the standard deduction. They include nonresident aliens, dual-status aliens, and individuals who fi le returns for periods of less than 12 months due to a change in accounting periods. On your tax return, you are allowed a standard deduction, which is an “automatic” deduction you may claim regardless of your actual expenses. Always compute your total itemized deductions for the year before going the standard deduction route. For more information, refer to IRS Publication 501, Exemptions, Standard Deduction, and Filing Information. s LJC@loucarino.com Josephine Lam, CPA 41-25 Kissena Blvd., Ste. 108 Flushing, NY 11355 Tel: 718.888.0988 Fax: 718.888.1011 · Business & personal tax returns preparation · Tax planning & consulting · Accounting, bookkeeping & payroll services · Business registration & dissolution Email: jlam@jlamcpa.com Serving the Needs of Individuals & Businesses KKNNOOCCKKDDOOWNN CCEENNTTEERR PPRREESSEENNTTSS FRIDAY FEBRUARY 20, 2015 11AM 2PM FREE MUSIC VIDEO WORKSHOP BOUNCY CASTLE GAMES TREATS CRAFT CORNER AND MORE! LOCATED AT 5219 FLUSHING AVE, MASPETH, NY 11378 NEAR THE JEFFERSON L STOP OR THE B38, B57, Q54 OR Q59 BUSES FOR QUESTIONS PLEASE CALL 347.915.5615 OR EMAIL MAILKNOCKDOWNCENTER.COM


QC02122015
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