Claudia's Crystal Ball: Tax Filing Season 2014
Each December as many begin to enjoy of the giddiness of the holiday season, I take the time to predict what the coming tax filing season will hold in store for tax advisors and their clients. These are my predictions for filing season 2014:And that's just half her list. Follow the link to read the other five predictions.
2014 filing season will not be as bad as 2013. Congress waited until the first week of January 2013 to tell us what the rules were for 2012. For 2013 there will be no retro-active changes, and the biennial list of expiring tax benefits will simply expire and be addressed mid-2014. For many, delayed tax forms meant filing season 2013 didn’t start until the first of March. IRS expects to be ready by the end of January 2014.
Higher income taxpayers with primarily investment income will be blindsided by additional taxes, and wonder why their tax advisors didn’t prepare them for the additional money they owe.
Higher income taxpayers with primarily earned income (in excess of $200,000 for singles and $250,000 for marrieds) will be blindsided by higher taxes this year, and wonder why their tax advisors didn’t prepare them for the additional money they owe.
The Supreme Court’s Windsor decision on the Defense of Marriage Act (DOMA) will create a need for time-consuming discussions with same-sex couple clients who recently married and find they owe additional taxes.
DOMA creates a need for time-consuming discussions with same-sex couple clients who want to discuss whether they should get married and how to avoid the higher taxes they will face. [...]