New tax bracket, fewer deductions for wealthiest people

From The Carlsbad Current Argus - by Carole Feldman, Associated Press - A new top tax rate, higher Medicare taxes and the phaseout of deductions and exemptions could mean higher tax bills for wealthier Americans this year. Legally wed same-sex couples, meanwhile, may find the true meaning of the marriage penalty.
      All taxpayers will have a harder time taking medical deductions.
      In other changes for the 2013 tax year, the alternative minimum tax has been patched — permanently — to prevent more middle-income people from being drawn in, and there's a simpler way to compute the home office deduction.
      Tax rate tables and the standard deduction have been adjusted for inflation, as has the maximum contribution to retirement accounts, including 401(k) plans and individual retirement accounts, or IRAs.
      The provisions were set by Congress last January as part of legislation to avert the so-called fiscal cliff of tax increases and spending cuts. “We finally got some certainty for this year,” said Greg Rosica, a contributing author to Ernst & Young's “EY Tax Guide 2014.”
      Nevertheless, the filing season is being delayed because of the two-week partial government shutdown last October. The Internal Revenue Service says it needs the extra time to ensure that systems are in place and working. People will be able to start filing returns Jan. 31, a week and a half later than the original Jan. 21 date.
      “People who are used to filing early in order to get a quick refund are just going to have to wait,” said Barbara Weltman, a contributing editor to the tax guide “J.K. Lasser's Your Income Tax 2014.”
      No change in the April 15 deadline, however. That's set by law and will remain in place, the IRS says. Read more

New tax bracket, fewer deductions for wealthiest people