Big changes coming to tax law in 2014

An accountant says everyone should be taking a look at their year-end tax status because big changes are coming
December 27, 2013 8:24:00 PM PST
Do not let 2013 slip away without first taking a look at your taxes. Because what you do from now until the end of the year could save you money.

There are big changes coming to tax law in 2014 but you still have time to get things in order so you do not get caught paying more than you have to.

Madeleine Howard is like a lot of people in Houston; she's planning ahead for the important things.

"To remain a good parent to my children, to always observe what they are doing, recreationally, academically most importantly," Howard said.

"And where do taxes rank on the things to do?" we asked her.

"Probably at the very bottom," she said.

But everyone should be taking a look at their year end tax status, according to people like Houston accountant Bob Martin. He says big changes are on the way in 2014.

"The big one is the sales tax deduction. Again that has not been renewed for 2014, so if you are planning on purchasing an automobile for example, you may want to get that in by the end of the year so you can get that sales tax deduction," Martin said.

Something else going away are energy tax credits.

"If you had not used that up since 2006, this 2013 may be the last year for it. So if you have energy improvements to your home, get them done by the end of the year," Martin said.

Something new that will impact nearly every taxpayer is health insurance. If you have no plan or one that does not meet new guidelines, you could be paying a fine come tax time.

"It could be from a few hundred dollars to a few thousand dollars, and you really need to step back and look at your health care coverage because it increases beyond 2014," Martin said.

It's also a good idea to check your charitable donations, you can off set the tax you will owe, just be sure it's to a charity with a 501(c)3 designation from the IRS.

Find Jeff on Facebook at ABC13JeffEhling or on Twitter at @jeffehlingabc13


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