The South Bay Tax Report
September 2013
We know - it seems like such a glamorous life, the life of a CPA and tax return preparer.
Who wouldn't want to spend hours pouring over Internal Revenue Code and Regulations, preparing closets full of mind-numbing tax forms, and staying up-to-date on regulations from every state in the US?
Yes, we here at Wayland & Vukadinovich LLP are living the dream and we're happy to do so.
We'll spend the next few South Bay Tax Reports going over new laws, talking about old laws, and - generally - asking all of you to up your game by reading about tax deductions, tax credits, tax timing, tax deduction phase-outs, and other important tax issues of the day.
We know, you'd prefer to go the dentist and have a tooth extracted rather than focus on these things, but tax planning can mean refunds, and dentists don't usually give refunds, so don't let those eyes glaze over, these are important concepts for all of us to understand. We'll be giving a quiz at the end of the year to make sure you've been paying attention!
We've changed the name of this feature to FATQs - that means "Frequently Asked Tax Questions," and now you know why Mike and Gary are tax guys, not marketing experts.
Here we go!
Frequently Asked Tax Questions
FATQs
Yikes!
I extended my returns for 2012.
What can I do?
You can get your tax information to us three days ago!
These next few weeks are busy here at
Wayland & Vukadinovich LLP
as we finish the 2012 filing season.
Help us to help you by sending your information to us NOW!
Let's not leave your return until the evening of
October 15th.
If you do, you may find that we're down on the beach of Hermosa celebrating the end of our 33rd tax season
(which is hard to believe as Gary
claims he's only 38 years-old.)
How can I reach the Internal Revenue Service during this period of Federal government shutdown?
You can't.
During the shutdown, the IRS Service Centers are closed, no audits are scheduled, telephone assistance is curtailed, and local offices will not be open.
They will, however, find a way to process any checks that you send them.
I'm nearing retirement - shall I start my social security now or shall I wait?
We've always said that it's easy to make the decision about when to take Social Security benefits if you can tell us when you are going to die.
Assuming you don't know that answer, the calculation becomes a bit more problematic but there are tools and options out there that can help.
Consider such sites as
The AARP Social Security Calculator
www.aarp.org/socialsecuritybenefits
or
MaximizeMySocialSecurity.com
or
SocialSecuritySolutions.com
Note that there are fees to use some aspects of these programs but they can provide good information about options for drawing your social security.
We so look forward to preparing our tax returns - when do you start taking appointments for tax season?
Well, just because we here at Wayland & Vukadinovich have no life except your tax returns, it doesn't mean that you should have no life.
This year, we'll open the appointment book on
December 17th. Organizers will be available starting that day, and remember - we only send organizers to those of you who ask for one.
You can contact the always-pleasant Gina at gina@wvcpas.com to order your organizer.
Our first appointments for this next tax season will begin
January 30, 2014.
I have a Health Savings Account (an "HSA").
Have there been any changes this year?
For those of you who know what a health savings account is, you will want to know that the IRS has announced that you will be able to contribute $3,300 to an individual account and $6,550 for family coverage.
For those of you who don't know about HSAs, note that they can result in lower health insurance premiums and deductions for contributions you make to an HSA which is - we say - like an IRA for health care costs.
Have there been changes to how I deduct medical expenses?
Yes!
If you and your spouse are both under age 65, medical expenses will only be deductible if they exceed 10% of your adjusted gross income. That's an increase from the 7.5% of adjusted gross income in prior years.
If you or your spouse are 65 or over, you are temporarily exempt from the increase.
Old age isn't always pretty but you get senior discounts on movies and more medical expense deductions!
What happened to my itemized deductions
and personal exemption?
You may look around in early 2014 and find that some of your personal exemptions and itemized deductions are missing.
Don't panic - it's just another new 2013 law change.
Starting in the 2013 filing season, certain taxpayers will have their personal exemptions and itemized deductions (like real estate taxes, mortgage interest and contributions) limited.
Single taxpayers earning more than $250,000 and married taxpayers making more than $300,000 will likely be looking for those missing deductions!
Why did my paycheck go down this week?
We're not sure why you called us with this one, but it may be because you are now subject to the new Medicare payroll tax increase put in place with the Affordable Care Act for 2013 and years beyond.
In 2013, high-wage earners will owe an additional 0.9% on earned income above $200,000 (single filers) or $250,000 (joint filers). So, for example, if you are a single filer whose salary will be $225,000, you will pay 1.45% Medicare tax on your first $200,000 and 2.35% on the next $25,000.
Your employer will be required to withhold the extra 0.9% once your wages pass the $200,000 threshold.
And Gina reminds us.....
Many of you are - still - refinancing. We're happy to provide you with electronic copies of tax returns but Gina, our pleasant office sergeant-at-arms will likely ask you several personal questions to make sure you are you before she is able to provide you with those electronic copies. Please allow us at least one business day to provide what you requested.
Just one final note -
We continue to tinker with our website.
We have a new home page.
We have new content.
We don't have any pictures of partners Mike and Gary.
We've taken plenty of Mike and Gary shots.
We just can't find one they like, one that makes them not look like tax accountants.
Visit it at
Wayland & Vukadinovich
| 
Contact Us