Sale of Personal Assets
Did you take a
loss on the sale of a capital asset such as a nonbusiness
automobile or your home? These losses are not deductible. If
you sold stocks, bonds, securities, land, or investment real
estate, the loss is deductible. Losses on the sale of non
personal capital assets are first used to offset gains,
after which up to $3,000 of the loss can be deducted on this
year's return unless you are married filing separately. Up
to $1,550 of the loss is allowed if you are married filing
separately. The remaining loss, if any, can be carried
forward to next year and subsequent years until all the loss
has been used.
Social Security Numbers
If you are
getting married and changing your name, be sure that you
notify the Social Security Administration. If you have a
baby, the hospital may provide Social Security application
forms for your child. You must have a valid Social Security
number for every person included on the tax return to
electronically file with the IRS.
State & Local Taxes - Itemized Deductions
You have the option of deducting state and local general
sales taxes instead of state and local income taxes as an
itemized deduction, but you cannot deduct both. If you
choose to deduct state and local general sales taxes, you
can use the actual taxes you paid during the year or the
Optional State Sales Tax Tables to determine the amount of
your deduction. You should keep your receipts to
substantiate any actual sales taxes you claim.
Estimated Taxes
If you expect to owe at
least $1,000 in taxes after subtracting withholding and
credits, you are usually required to pay estimated quarterly
taxes. For estimated tax purposes, the year is divided into
four payment periods. Generally, payments are due on April
15, June 15, September 15, and January 15 of the next year.
The first payment for 2013 will be due on April 15, 2013.
Estimated Tax - Underpayment Penalty
If
you did not pay enough tax either through withholding or by
making estimated tax payments, you will have an underpayment
of estimated tax, and you may have to pay a penalty.
Generally, there will be no penalty for underpayment unless
the amount you owe is $1,000 or more.
Withholding
If you are employed and
receive large refunds, consider adjusting your withholding
amounts with your employer. Instead of waiting until the end
of the year to receive a big refund, you can complete a new
Form W-4, give it to your employer, and have less
withholding tax taken out of your paycheck. If income or
employment circumstances change, it might also be to your
advantage to revise your Form W-4 at that time.
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