IRS's Income Tax Guide Revised: What to Look Out ForTax Professionals' Resource
January 8, 2014 — 1,517 views
The Internal Revenue Service (IRS) has released its latest updated tax guide that is expected to make the process of filing tax returns easier than before. It also announces some new schemes for those self-employed and other special groups of people. The new tax guide is progressive and has been praised by several groups for the benefits it provides. The new guide is expected to make taxation easier on a large segment of the population.
What is New?
Several new features have been introduced into the tax code by the new guides. The top tax rate remains at 39 percent. One new element is the Medicare tax which will now be added to the tax burden of employees and not employers. This is expected to come into effect from 2014.
The newly introduced Affordable Care Act will also impact the tax returns of those who are affected by it. It should be noted that those who do not have healthcare and those who do not come under any relevant exemptions are the only groups that will be affected by the Affordable Care Act.
For self-employed people, there are several tax cuts in 2014. Not only that, but it is also going to become easier to file tax returns for those who are self-employed. And because the defense of marriage act has been struck down by the Supreme Court, the definition of marriage is left to the states to make for tax purposes.
The new tax guide affects specific groups in a unique way. Charities will have to specify all the donations that they have received to be eligible for tax deductions. The tax deduction for teachers and their school supplies has been done away with.
There were a number of tax cuts that were intended to encourage energy efficient use of homes, such as solar panels, solar heaters and green buildings. But under the new tax guide, they have all been scrapped. The tax break that was given to home owners with underwater mortgages has also been taken away. Under the new tax guide, their home bills and costs will be taxed just like anybody else’s home. The new tax guide was being planned for a long time. Several much needed changes have been incorporated into the new tax guide. It has also provided many benefits to deserving groups which were previously not available.