24 The Queens Courier • february 20, 2014 for breaking news visit www.queenscourier.com tax tips New Standard Deduction for 2013 Tax Year BY BARY LISAK When filing 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 benefit 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 Office 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 filing status and are subject to inflation adjustments each year. For 2013, they are: Single $6,100 Married Filing Jointly $12,200 Head of Household $8,950 Married Filing Separately $6,100 Qualifying Widow(er) $12,200 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, 2014 you are considered age 65 for the 2013 tax-filing 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 defines “partly-blind” as having a field vision of no more than 20 degrees or corrected vision better than 20/200; you’ll need a certified statement from an eye doctor backing up your claim. For example, a younger single filer gets a standard deduction on his 2013 return of $6,100. A single senior filer’s amount is $7,600, an extra $1,500. If the older taxpayer also is blind, then his standard deduction jumps to $9,100. Likewise, an older husband and his older wife can claim a standard deduction of $14,600. That’s $2,400 more than a younger married couple can deduct. 3. If you are married filing 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 figure 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 $300. 5. Some taxpayers are not eligible for the standard deduction. They include nonresident aliens, dual-status aliens, and individuals who file 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 *$99 minimum tax preparation fee. Please bring your invoice from last year’s tax preparation fees. Offer available for 2013 tax returns only. Not to be combined with any other offer. Non-negotiable. No cash value. If you had your taxes prepared by Gilman Ciocia in 2013, you do not qualify for this promotion. This discount must be requested at time of service, no credits will be issued after the tax return has been filed. Offer expires March 31, 2014. Queens Multi-Media Company has Immediate Employment Opportunities Candidates must also have: • Excellent interpersonal and organizational skills • Outstanding follow through • Be able to work in fast-paced environment • Computer skills Salary, 401K, Health Benefits, Commissions, Bonuses in our Bayside office INSIDE SALES: SALES ASST.: COLLECTION CLERK: Part time. Must have prior sales experience. Full time. Data entry experience. Part time. Must have collection experience. Call Bob at 718.224.5863 ext. 228
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