Van Nuys, Los Angeles – A delayed tax season has kicked off and there’s new updates and changes that can benefit tax payers, says CTEC licensed tax preparer in los Angeles, Mr. Oscar Vasquez, from Nuevo Horizonte Tax Services in Van Nuys, Los Angeles. As we all know, every year there’s new tax laws that are positive and negative for tax payers every tax season.
What type of changes does this tax year brings us, we asked Mr. Vasquez? This year you can contribute up to $17,500 to your 401k plan in 2013, a five hundred dollar increase over 2012. The catchup contribution is available for those that are age fifty and up remains the same at $5,500. The fifty and over crowd can still contribute to their 401k up to $23,000 and on top get a matching employer contribution. For small business owners or self-employed, you can contribute as much as 25% of annual compensation to a SEP IRA, up to an amount of $51,000. That’s an increase of one thousand dollars from 2012.
The annual gift was also increase by one thousand dollars to $14,000. This is the sum you can give to as many folks as you want in 2013 without worrying to pay the federal gift tax..
In 2013, the amount of unearned income received by minor children that isn’t subject to federal income taxes increased fifty dollars from 2012 $950 to $1,000. This will make those parents who set up custodial accounts for their children under their state’s Uniform Gifts to Minor Act. The child tax credit remains the same and can be worth up to $1,000, for parents or guardian with a qualifying child under the age of 17 years old. Although this is not consider a change, we bring it up, since there were rumors in the beginning of the year that it could of been cut to half.
For information in how to get in contact with Nuevo Horizonte Tax Services and to have a piece of mind a licensed CTEC tax preparer will do your taxes this tax season, call at 818-778-1133 or visit the website at Nuevo Horizonte Tax Services.