Tax Time: New changes that you need to know before you file
WASHINGTON – Americans across the country can officially begin filing their tax returns on Jan. 31.
The IRS delayed the original filing by 10 days because of the two-week government shutdown last year.
This year, taxpayers in higher-income brackets may feel the most pain from tax law changes.
The top rate is now 39.6 percent for those who make over $400,000-a-year.
Those who make over $200,000-a-year may be subject to a Medicare surtax.
Americans may also have a harder time listing medical deductions.
Officials say you will only be able to deduct medical expenses that are not covered by insurance if they add up to more than 10 percent of your adjusted gross income.
However, the old rate is grandfathered in until 2017 for those older than 65-years-old.
The tax rate tables and the standard deductions have been adjusted for inflation, as well as the maximum contribution to retirement accounts.
Taxpayers with an adjusted gross income of $58,000 or less can still take advantage of the free file option offered by the IRS.
Some of the most overlooked deductions include student debt, a federally declared natural disaster loss, dependents, donated good, self-employed workers and other miscellaneous deductions.
For more information, visit Womack Investment Advisors or call IRS for assistance at 800-829-1040.