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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 32 The Courier sun • february 20, 2014 for breaking news visit www.couriersun.com tax tips 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 WESLEY HITNER, CPA F r e s h M e a d o w s , N Y 1 1 3 6 6 718-465-3466 This tax season, have your taxes prepared in the comfort of your home. I make house calls. I am a CPA with over 25 years of experience. Other services include small business/corporation accounting and taxes. NO JOB IS TOO SMALL. CALL ME FOR A FREE CONSULTATION EARN EXTRA INCOME TELEPHONE SALESCLASSIFIED AD SALES Experience necessary, but will train. Part-time, flexible hours 5 days a week, 4 hour shifts Qualifications: reliable, punctual, excellent phone and people skills BAYSIDE, QUEENS LOCATION CLOSE TO LIRR SALARY + COMMISSION CALL FOR INTERVIEW 718.224.5863 ext. 228 Legally Speaking By: Scott Baron, Attorney at Law HIT BY A FIRE TRUCK Advertorial Q: Approaching an intersection with a green light in my favor, I noticed a fire truck entering the intersection. It was proceeding in response to an alarm at the county jail, at a speed of 10 to 15 miles per hour, against the red light. As soon as I saw the fire truck, I engaged my brake. Still, I collided with the rear of the truck. The police found a skid mark from my motorcycle of over 44 feet. I am sure I never heard any horns, sirens or warning sounds. A: Even with an emergency right of way, the driver of a fire truck has a duty to check the color of the light prior to proceeding into and through an intersection. He is also obliged to look towards your lane. Your attorney will seek to determine whether the driver so conducted himself and also whether he accelerated or decelerated, or issued any emergency soundings. Despite the special status given to emergency vehicles by the Vehicle and Traffic Law, the driver of such a vehicle must drive with due regard for the safety of all persons and is not excused from the consequences of his reckless disregard for the safety of others. No driver is permitted recklessly to flaunt the risks of his conduct, indifferently and in disregard of any modicum of statutorily required attentiveness. The law responds to changed conditions; exceptions and variations abound. Here, the information is general; always seek out competent counsel. This article shall not be construed as legal advice Copyright © 2014 Scott Baron & Associates, P.C. All rights reserved. 159-49 Cross Bay Boulevard, Howard Beach, New York 11414 1750 Central Park Ave, Yonkers, NY 10710 718-738-9800, 914-337-9800, 1-866-927-4878


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