Prepare Yourself for Tax Season
With the 2013 tax year ending soon, it’s a good time to review your options. A California company called TaxAudit.com has prepared some handy tips for having the least taxing experience possible this year.
The company cautions that, while tax rates for most people are unchanged for 2013, higher income folk will face a top bracket that’s up from 35% to 39.6%. This came as a result of this year’s fiscal cliff legislation from Washington.
Consider “bunching together” your itemized deductions, and taking them every other year, while sticking with the standard deduction on the odd years. TaxAudit said that this allows you to get maximum leverage from your itemized deductions.
Defer income if you think you’ll be in the same (or lower) bracket for the 2014 tax year.