Posted On January 24, 2013

Planning for Nevada tax time with major changes to IRS laws

The fiscal cliff will continue to affect Nevada residents for the upcoming year. With this in mind, several tips for taxpayers are being published. Although the fiscal cliff has been avoided and the potential IRS tax crisis avoided, taxpayers should be aware there could be a wait to file taxes. It takes time for the IRS to take into account all of the changes enacted for the year. Residents may have to wait until March before they can file.

In addition, certain aspects of the new healthcare act are poised to bring about changes to taxes. Wealthier taxpayers should expect a 3.8 percent tax on their investment income. Any single taxpayer with an annual income over $200,000 or households with incomes of at least $250,000 could see the new Medicare tax figured into their investment earnings, so this is something to remember when filing returns.

The majority of tax tips for the upcoming year revolve around fiscal cliff changes, the new healthcare plan and IRAs. For those who converted their IRAs to Roth IRAs, payments concerning the conversion were allowed to be paid over two years. The other payment will be due with the 2012 tax return. Tax laws are in a constant state of flux, and the best approach is likely to seek assistance in gaining an understanding of the news laws and their potential impact.

With the fiscal cliff deal, it could be a challenging time for taxpayers as they seek to acclimate to potentially higher taxes and upcoming changes in our laws for the next few years. Many may find themselves in IRS tax debt for the first time ever. When this debt results in financial difficulty, Nevada taxpayers should be aware there are likely options available to help solve their problems, and a favorable resolution may be achieved with the right assistance.

Source: Yahoo.com, “10 Savvy Tax Strategies to Keep in Mind for 2013,” Kay Bell, Jan. 6, 2013