“We have had very few tax laws passed during the past year. Many tax provisions you may have used in 2011, expired in 2012 and won't be available for you this time. Some of the provisions we are all used to - tuition deduction, education deduction and sales tax deduction, just to name a few - are now gone,” remarked Mr. Fowler.
Here are some things to consider while planning your taxes going forward:
· Many tax laws are expiring in 2012 and will not be available in 2013 under the current law: Child tax Credit will go down from $1,000 per qualifying child to only $500. Gift and estate taxes are going up for you and the extra Earned income tax credit for a 3rd child is completely gone
· If Congress allows the Bush tax cuts to expire, ordinary income tax rates will increase for most individual taxpayers beginning in 2013.
o While the actual tax brackets are not set for 2013, the rate of inflation that impacts the income levels for each tax rate is anticipated to go up 2.5%. Please recall that if Congress does not act, the 10% income tax bracket becomes 15% and the top income tax bracket moves from 35% to 39.6%.
· If you qualify for either the American Opportunity or Lifetime Learning education credits, check to see how much you will have paid in qualified tuition and related expenses in 2012. If it is not the maximum allowed for computing the credits, you can prepay 2013 tuition as long as it is for an academic period beginning in the first three months of 2013. That will allow you to increase the credit for 2012.
Because of his expertise and contributions to his profession, Barry Fowler will be featured as one of America's PremierExperts®
About Barry Fowler:
Barry Fowler is licensed to represent taxpayers before the Internal Revenue Service (IRS) and is a longstanding member of several tax industry professional organizations including the National Association of Enrolled Agents (NAEA), National Association of Tax Preparers (NATP), Texas Society of Enrolled Agents (TSEA), and the American Society of Tax Problem Solvers (ASTPS). With experience in the tax and finance industry spanning over twenty years, Fowler’s expertise includes tax resolution, personal financial planning, tax return preparation, financial statements, and general ledger bookkeeping. He has been instrumental in helping hundreds of people resolve complex tax issues with the IRS.
Fowler’s Taxation Solutions, Inc. reaches out to people throughout the entire United States. With a genuine concern for the IRS issues his clients face, he states, “We are here to help them (clients) fight the IRS. We are experts in this industry and our knowledge surpasses most tax firms. We will do what we say we will do. We do not give our clients empty promises and we stand behind the promises we make. We look at each case objectively and honestly convey to our clients their best options. We have been highly successful in exceeding our clients’ expectations.”