Indiana News

Indy Tax Expert Cites New Rules

1/13/2014

The Internal Revenue Service won't begin processing tax returns for 2013 until January 31st.

Listen:

Indianapolis-based Liberty Tax Service Spokesperson Greg Carney says that's because of the government shutdown back in October. Carney says filers can still have returns prepared and have them ready. Carney says the filing deadline remains April 15th. He adds that the standard deduction, amount of personal exemption and amount of earned income credit have all increased.

Carney says there's also a new tax bracket of 39.6% which applies to those who make more than $450,000 a year. He says they also have a 20% capital gains tax rate on their investment incomes.

Carney says the Affordable Care Act does not affect this year's tax return. He says that won't take effect until next year because the act is being implemented this year. Carney says filers without health insurance this year may face a 1% of income penalty next year. He says low income people may be able to apply for a subsidy to offset the penalty, but again, that's not until next year.

Finally, Carney says same-sex couples can file a joint federal return, but must file separate state returns because Indiana doesn't recognize same sex marriages.

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