It's hard to believe that another tax season is almost here!

Clients who benefit the most from our service are the ones who take a few minutes to prepare their paperwork and think about deductions before year-end. As you think about organizing your paperwork, we'd like to take this opportunity to remind you about some of the basic deductions and current rates, and we invite you to call with any tax questions you have at this point. As always, existing clients will be receiving their Tax Organizer packages in early January, but it never hurts to get a jump start on your homework!

Mileage rates for 2013 are 56.5 cents per mile for business use, 24 cents per mile for medical and moving uses, and 14 cents per mile for charitable uses. The mileage rates for 2014 are 56 cents per mile for business use, 23.5 cents per mile for medical and moving uses, and 14 cents per mile for charitable uses.

There are new Medicare taxes for certain taxpayers, the 39.6% tax bracket has been restored and there are some additional personal exemptions and itemized deductions.

* IRA Contributions: Contributions have been increased for 2013- the maximum is now $5500 ($6500 if you are over 50). The ability to use and amount of this IRA contribution deduction depends on your AGI.

*Teachers' Deduction: This deduction is limited to $250 and will reduce your adjusted gross income (AGI). This includes classroom supplies, books, computer equipment, and any other materials used in the classroom. This deduction is due to expire at the end of 2013, so we recommend that you make any necessary classroom purchases by the end of the year if possible.

*Itemized Deductions: One important change to take note of on Schedule A is a change to the deduction for medical expenses. Taxpayers are now allowed to take this deduction when any unreimbursed medical expenses exceed 10% of your AGI, or 7.5% of your AGI if you are over age 65. The 10% figure will apply to all taxpayers starting in 2017.

*Child Tax Credit: This is available to taxpayers with a dependent who is under age 17 at the end of this year. The availability of this credit is based on a taxpayer's filing status and AGI. The maximum credit for this is $1000, and it was recently announced that this credit will be made a permanent credit.

*Education Credits and Deductions: There are both credits and deductions for education expenses based on a taxpayer's AGI, filing status, and amounts paid for school. The American Opportunity Credit is available (up to $2500) depending on the amount of tuition paid, filing status, and AGI of the taxpayer. This is currently available through 2017. A deduction for Student Loan Interest is available (up to $2500) depending on a taxpayer's AGI and filing status. Also, a deduction for qualified higher education expenses is available. The eligibility and amount are based on a taxpayer's modified AGI and filing status.

Enjoy the rest of the year, and we look forward to seeing you soon at your tax appointment.