All eyes are on Washington as the White House and the GOP seek to avoid the so-called “fiscal cliff” before the end of the year. President Obama and House Republicans are negotiating the fate of the Bush-era tax cuts, mandatory spending cuts and more in the last weeks of 2012 and negotiations are expected to go right up to the end of the year. At the same time, the IRS has cautioned that the start of the 2013 filing season could be delayed for many taxpayers because of late tax legislation.
FF&F News & Events
The Social Security Administration (SSA) announced in a recent news release that monthly Social Security and Supplemental Security Income (SSI) benefits will increase by 1.7 percent in 2013.
Standard business mileage rate will rise to 56.5 cents in 2013; certain depreciation-limits also projected to rise
The IRS has released the 2013 optional standard mileage rates that employees, self-employed individuals, and other taxpayers can use to compute deductible costs of operating automobiles (including vans, pickups and panel trucks) for business, medical, moving and charitable purposes.
The IRS has announced a number of relief measures to help victims of Hurricane Sandy, including extended filing and payment deadlines.
President Obama’s health care package enacted two new taxes that take effect January 1, 2013. One of these taxes is the additional 0.9 percent Medicare tax on earned income; the other is the 3.8 percent tax on net investment income. The 0.9 percent tax applies to individuals; it does not apply to corporations, trusts or estates. The 0.9 percent tax applies to wages, other compensation, and self-employment income that exceed specified thresholds.
Many retirement plan contribution and benefit limits will increase slightly in 2013, the IRS has announced.
The IRS has issued Notice 2012-63, which sets forth the simplified per diem rates that taxpayers may use to reimburse employees for expenses incurred during business travel after September 30, 2012.
Penalties for failing to file tax returns and failing to pay on time can add up quickly.