Tax Preparation in 2014

Last updated on January 8, 2014

Preparing taxes requires knowledge of tax credits, tax deductions, qualifying factors and tax laws. It is the complexity of tax preparation that leads many people to hire professional services for tax return preparation. Apart from the tax knowledge, you also need to plan your taxes, and keep your receipts and tax documents organized. After filing 2013 returns this tax season, it is important to plan taxes for 2014.

This year, there are many tax breaks and credits that have expired. It will mean changes in how we pay taxes. The top tax rate has increased to 39.6% due to the expiration of the Bush tax cuts that continued until the end of 2013. More than 50 other tax credits and deductions have expired in 2013, but some deductions such as those on charitable contributions are still relevant in 2014.

The self-employed get a new tax break in 2014 if they work from a home office. The deduction is equal to$5/square foot of home office space. There are many others new deductions that can be claimed in 2014. It is important to plan your taxes accordingly.

Tax preparation in 2014 also involves being organized right from the start. Keeping receipts of items that you can deduct is essential to make claims on your tax return next year. Planning taxes at the beginning of the year helps to save the maximum amount of taxes and prepare returns smoothly.