SHATTUCK'S TAX FACTS


IRS plans Jan. 30 tax season opening for individual filers

by Alan Shattuck, CRTP

SACRAMENTO

Comment Print Email
January 9, 2013 9:00pm

•  How the Fiscal Cliff deal could impact your taxes

•  Some deduction issues ahead


Previously...

3/27–Making income tax less taxing – Part 8

3/11–Making income tax less taxing – Part 7

3/7–State Board of Equalization Discusses Use Tax

3/4–Making income tax less taxing – Part 6

2/11–Making income tax less taxing – Part 5

2/2–Making income tax less taxing – Part 4

1/24–Making income tax time less taxing – Part 3

1/19–Making income tax time less taxing – Part 2

1/8–State tax filing season officially open

1/6–Making income tax time less taxing – Part 1

3/24–Tax benefits for parents

3/18–The voluntary worker classification settlement – and you

3/17–What is my filing status? Who can I claim as a dependent?

3/3–College education credits

2/25–Taxpayer alert!

2/12–Federal income tax update

1/9–IRS plans Jan. 30 tax season opening for individual filers

11/5–The real cliff-hanger Americans – and the world – are facing

10/12–What payment options are available for me to pay my taxes by October 15?

10/2–What if I do not file and/or pay by October 15th

9/25–Tax tips for selling your home

9/13–Tax benefits for college education

9/6–Not quite Hallmark: IRS has a notice for every occasion

8/31–When and how to file an amended tax return

8/24–Tax tips for uncertain times

8/22–Tax filing complete? Think you are done? Not hardly!


We have waited a year for Congress and the President to deal with tax issues as part of the Fiscal Cliff issue. Well, just in time and at the last possible moment, Congress and the President both decided it was time to pass The American Tax Relief Act (ATRA) which takes care of some of the income tax issues for the taxpayers.

The IRS will begin accepting individual income tax returns on January 30, 2013 after updating forms and completing programming and testing of its processing systems. This will reflect the bulk of the late tax law changes enacted January 2, 2013.

This announcement means that the vast majority of tax filers (more than 120 million households) should be able to start filing tax returns on Wednesday, January 30th.

No individual income tax returns will be processed by the IRS before the anticipated opening date. There is no advantage to filing on paper before the opening date, and taxpayers will receive their tax refunds much faster by using e-file with direct deposit. Congress and the Administrative employees get paid as usual, while taxpayers have longer to wait for tax refunds.

The most pressing items for 2012 filers in the ATRA deal with tax provisions that were extended retroactively to Jan. 1, 2012 and extended through Dec. 31, 2013. Some of these items are as follows:

Itemized Deductions – Schedule A:

• Extends for two years (2012 & 2013) the election to take an itemized deduction for State and Local General Sales Taxes in lieu of the itemized deduction permitted for State and local income taxes.

• Premiums for Mortgage Insurance Contracts entered into after December 31, 2006 on a qualified residence have been deductible as qualified residence interest. This revives the deduction for 2012 and extends it through 2013. The Deduction is phased-out ratably by 10% for each $1,000 by which the taxpayer’s AGI exceeds $100,000. Thus the deduction is unavailable for a taxpayer with an AGI in excess of $110,000.

Deductions on Page 1 of Form 1040:

• Revives the Teachers’ Classroom Expense Deduction of up to $250 of a teacher’s qualified classroom expenses for 2012 and extends it through 2013.

• The above-the-line deduction for Qualified Tuition and Related expenses ($2,000/$4,000) in lieu of education tax credits is now revived for 2012 and extended through 2013.

Permanent AMT Patch:

• Increases the exemption amounts for 2012 to $50,600 for unmarried individuals; $78,750 for married taxpayers filing jointly and surviving spouses; and $39,375 for married taxpayers filing separately

• Allows nonrefundable personal credits to the full amount of the individual’s regular tax and AMT

• Provides for an annual inflation adjustment to the exemption amounts for years beginning after 2012

Tax-Free IRA to Charity Contributions:

• Tax-free distributions (up to $100,000) made by taxpayers over age 70 and ½ from individual retirement plans for charitable purposes, which expired at the end of 2011, is now revived for 2012 and continued through 2013. Due to 2012’s passing, a special rule permits distributions taken in December 2012 that are transferred to charities before February 1, 2013 to be treated as a charitable distribution and therefore not taxed in 2012. Another special rule permits charitable distributions made in January 2013 to be deemed made on December 31, 2012.

Tax Free Employer Mass Transit Benefits:

• The excludable employer-provided mass transit benefit is revived to $240 per month for 2012 and continues through 2013.

More details and information will be disclosed in tomorrow’s article including what changes are in store for 2013 and beyond. Over the weekend, I will also be updating for California income taxes.

If you have any questions, please contact me at alan.shattuck@sbcglobal.net.

Comment Print Email












  • How to compete against Wal-Mart
  • Stockton mom turns a need into a business
  • The entrepreneur is in
  • Writing her own success story
  • Growing a small business the family way
  • The future pencils positive for this company
  • Niche marketing -- Italian style
  • Sipping success with niche marketing
  • Roasting a business out of his passion
  • Success as an independent consultant takes more than expertise
  • Avoiding the traps of employee law violations
  • Cracking the voice-over market
  • The American Dream realized, one package at a time
  • Female winemaker plunges into business
  • A new take on nurse education
  • Family sees moving business success
  • STEM thrives in pockets of education innovation
  • STEM goes solar in Stockton
  • Quick! There’s a robot in my pool
  • Retiring seniors can mean new business
  • Predawn biotech class trains next generation of science workers
  • Staying ahead of the competition the old fashioned way
  • Central Valley sees mismatch between high-tech jobs and job seekers
  • STEM starts young
  • Get ready – the future is here now
  • STEM Education: Growing the Valley's Future
  • They’re low power in wattage only, not ideas
  • Thinking success spawns Successful Thinkers
  • Small business success can mean finding the right niche
  • This franchise has real muscle behind it
  • Getting the scoop on small business success
  • Reshoring could rebuild America's manufacturing
  • Marketing that’s deliberately anchored to the past
  • Guitar artist plays his way to success
  • Paralysis no handicap for this entrepreneur
  • Boost sales with better communication
  • Making sandwiches sexy with a franchise
  • Going solar without spending a lot of money
  • They’re cute and cuddly. But are they a business?
  • Opportunity sails forth in the Delta
  • How bad etiquette on the job could kill your career
  • Growing their way out of hunger and poverty
  • Finding small business success from floor to ceiling
  • Why he’s public enemy #1 – for gophers
  • Running a home-based business successfully
  • Your boss needs a vacation – really
  • Couple makes transition from big corporations to small business
  • Carving a small business niche with a better idea
  • Calm is the goal of computer service and education franchisor
  • Developer squeezing new life into downtown with juice franchise
  • Signs of a recovering economy
  • How to keep a family business in the family
  • Ford dealership expands despite the Great Recession
  • Utility Telephone connects with customer service
  • Crowdfunding basics
  • The roar from crowdfunding is getting louder
  • California water wars’ bulldog
  • Water wars heat up in California
  • Helping businesses grow with a stronger STEM
  • How to retain your best employees
  • Small business runs success up the pole
  • Winery expands in Lodi
  • Lodi wineries tapping into growing Chinese market
  • Has the jobs picture brightened for the Valley for 2012?
  • The right education will be needed for 21st Century jobs
  • Where new jobs for San Joaquin will come from
  • Developing jobs for San Joaquin – Part 2
  • Developing jobs for San Joaquin
  • Fruits of his labor
  • Helping grow food security in the Valley of plenty
  • Doing a business turnaround despite the recession
  • Keeping customers loyal helps build her business
  • Expo exposes businesses to utility contracting ideas
  • Drink mix maker taps expertise to blend success
  • Entrepreneur finds success in a basket
  • Tips for catching resume fraud
  • There’s no checking out for this small business owner
  • Entrepreneurs take Valley sports play-by-play to the world
  • Starting a winery from scratch
  • Job hunting tips for the long-term unemployed
  • In the Central Valley, opera isn’t always the Grand Ole Opry
  • Branding ideas for small businesses
  • The ump’s not blind, but the players are
  • Finding success by tapping your brain in a new way - Part Two
  • Finding success by tapping your brain in a new way
  • Machines talking to machines is the future
  • Getting involved in the fight against AIDS
  • Franchised divorce says it’s a better way
  • Small business owner is brewing a success story
  • To beat the Great Recession, they’ve expanded
  • Taking a swing at strokes
  • Alert your taste buds – here comes Taste of San Joaquin
  • This franchise has real muscle behind it
  • Passion for his city drives him
  • Vicente Fox speaks out on U.S.-Mexico relations
  • Give your support staff recognition and reap top performance
  • Central Valley baker gets top honors for Royal Wedding pie
  • Asparagus Festival ends on high note
  • Stockton close to annual ‘tipping’ point
  • Framing small business success
  • Small business sees Affordable Care Act helping its bottom line
  • What you eat – and when – helps local restaurants
  • Coping with the aftermath of foreclosure
  • How to raise charming children
  • Central Valley grad school goes all-iPads
  • Solution to Delta water wars voiced
  • Making sure your personal bottom line is covered
  • Small California winemaker is all family
  • Small winery relies on family and innovation to compete
  • Central Valley company says it has a better way to store solar power
  • What’s wrong -- and right -- about local TV news
  • What planning means to small business success
  • Making the leap to small business
  • Out of work at middle age? Experts offer advice
  • Small business marketing, one article at a time
  • Congress on your corner as it’s supposed to be
  • Central Valley city’s heritage rediscovered
  • Central Valley school is building students’ foundations
  • Job tips from the expert
  • Long-term jobless worker re-invents himself
  • Building a new power plant means jobs for Central Valley
  • Sacramento reaches for the stars with new science center
  • Lodi Chamber opens China’s doors to small business
  • Writing books for fun – and sometimes profit
  • Black Friday shopping? How to protect yourself from scams
  • California winemakers can find added rewards overseas
  • Wine makers tap overseas markets from Lodi
  • A new revenue stream for Central Valley small businesses
  • Food bank seeks more business support
  • Tips for finding a job in the Great Recession
  • State may solve some of its prison woes with new Stockton facility
  • A solution to underwater mortgages
  • Should public libraries be managed by private firms?
  • Central Valley moves ahead with critical water project
  • Dee Dee Myers and the increasing impact of women on small business
  • How women are growing their small businesses
  • A market with a mission
  • Retailer 'paints' solutions to cash flow challenge
  • An answer for the unemployed – return to school
  • A ‘golden’ small business success story
  • Central Valley winegrapes blessed
  • Rubbing out the recession with a franchise
  • Surviving the recession as a small business
  • It’s personal, union says of Stockton fire cuts
  • How old it too old to start a new business?
  • They've found the recipe for small business success
  • MBA students help revive Central Valley farmers market
  • Classic wooden yachts anchor in Stockton for weekend
  • Foreclosures, short sales – a bank president comments
  • The strength of family helps this small business compete
  • Festival spears success in Central Valley
  • Social media helps keep family business prospering
  • Central Valley students get training in ‘green’ futures
  • Knives readied as Valley cities slash services
  • Central Valley jobless picture still grim
  • Delta residents told to ready for water war
  • Opportunities outlined for Central Valley small businesses
  • Rewiring your brain for success
  • Central Valley no longer ‘shell shocked’ by recession
  • To fix California’s government, look to London
  • Taking your sales pitch to the next level