Dec
The IRS announced in October of this year that it will not start accepting and processing 2013 income tax returns until somewhere between January 28th and February 4th of 2014. Originally the 2014 filing season was to begin on January 21st. The IRS extended the deadline based on the 16-day government shutdown in October. The additional time is needed to program and test tax processing systems. Final announcement of the actual date is expected to occur in December.
2013 AND 2014 Retirement Plan Limitations
This is just a reminder of the annual limits of retirement funds.
The annual limitation on IRA contributions in 2013 and 2014 is $5,500 ($6,500 for those age 50 and older).
The elective deferral limit for employees who participate in 401(k), 403(b) and 457 plans is $17,500 in 2013 and 2014 ($22,000 for those age 50 and older).
There are various income phase out limitations for all IRA accounts. Please make sure to check with a tax professional in order to determine your eligibility.
2013 Mileage Rates
The business mileage rate for 2013 is 56.5 cents per mile, 14 cents per mile for charitable purposes and 24 cents per mile for medical expenses and moving purposes. The 2014 rates have not yet been announced.
Section 179 Expensing and Bonus Depreciation
As I’ve reported a number of times this year, the section 179 limit (which allows businesses to deduct certain equipment in the year of purchase rather than depreciating it over a number of years) is $500,000 in 2013 and is scheduled to be reduced to $25,000 in 2014. While the IRS has raised this limit last minute each of the last few years, there is no guarantee that this will happen again in 2014.
Bonus depreciation on new equipment is limited to 50% of the cost in the year of purchase. Bonus depreciation is currently scheduled to sunset on December 31, 2013.
Conclusion
The above provisions are just a few of many that affect taxpayers. It is important to keep these in mind as we come to the end of the year. There are many other provisions that may apply and some have been covered in previous articles. In order to truly understand how all of the tax provision changes affect your return it is always advisable to consult with a tax professional.