2014 Client News Letter

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To Clients and Friends of Denby Financial Services – 
 
Best wishes to you and your families for a happy and healthy New Year!!! As we are all digging out of the snow in the Northeast, here are a few updates for the upcoming year:
 
Tax Year 2013
The IRS will begin accepting 2013 tax returns on January 31, 2014. As always I recommend gathering and organizing your tax documents and be on the look out for W2’s from employers, 1099’s, and any other important tax related documents. I encourage any existing clients to contact me as soon as possible to schedule an appointment to review your documents and begin the filing process. Avoid waiting until the last minute, as starting early can be a benefit by providing extra time to resolve any unforeseen issues.
 
2013 Tax Law Changes
Here are just a few changes that may impact 2013 returns:
  • 0.9% Medicare surtax – applies to high income earners in excess of $200k for Single/Head of Household and $250k for Married filing jointly ($125k Married Filing Separately)
  • 3.8% Medicare surtax on investment income – applies to unearned income (interest/dividends/capital gains/etc) for  Single/Head of Household with Modified Adjusted Gross Income above $200k and $250k for Married Filing Jointly ($125k Married Filing Separately)
  • Capital Gains and Dividends top rate rises to 20% for high income earners above $400k for Single/Head of Household and $450k for Married Filing Jointly
  • IRA deductible contributions = $5,500 for those eligible and $1,000 catch-up contribution for those 50 or above
  • Medical Expenses deduction threshold rises to 10% of AGI from 7.5% in 2012 for those under 65
  • Standard Mileage allowances: $0.565 for Business, $0.24 for Medical purposes, and $0.14 for Charitable purposes
  • Please note: 401k Contribution limits remain unchanged at $17,500 for 2014 (additional $5,500 catch-up for those 50 and above)
These are just a sample of the many changes for 2013. Although there are many, the software I utilize is updated each year to help me capture all the various changes.
 
Plans for 2014
During 2014 I plan on continuing my expansion of business offerings such as payroll, accounting services, and general consulting. I hope to keep you posted as the year progresses. – JD

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