With just over one month left before the 2014 tax filing deadline, millions of taxpayers have yet to begin preparing their returns. Ann Irons, CPA advises that high earners should be aware of some new requirements when filing individual income taxes in Bellingham, MA. Whether filing individually or jointly, recently enacted federal tax laws may determine the best course of action. According to Irons, filing jointly will save money for spouses who generate comparable income. For households in which one spouse earns a significantly higher income than the other, you may benefit from filing separately.
Why Should You Enlist the Help of a CPA?
As income increases, so do the potential returns and taxes. That’s why it pays to entrust the preparation and filing of your tax return with a CPA. Irons, whose tax expertise benefits individuals and businesses alike, will review your financial documents and ensure that you receive the optimal combination of deductions and credits. Even a single mistake on your tax return could result in fines, penalties, and an audit by the Internal Revenue Service. This fact, combined with the ever-changing nature of filing requirements, means that stakes are higher than ever for Massachusetts residents filing jointly or singly.
New Tax Requirements for High Earners in Massachusetts
Tax Requirements for Income $200,000 and Up
- If your income exceeds this amount, the IRS now requires you to pay a Medicare tax of 0.9%.
- Exemptions claimed for dependent children and related expenses will be phased out for single filers.
- Exemptions claimed for dependent children and related expenses will be phased out for joint filers whose adjusted gross income exceeds this amount.
- Taxpayers whose taxable income exceeds this amount now have a 39.6% tax bracket.
- You may also be required to pay higher taxes on capital gains, rental property incomes, and net investment income.
Tax Requirements for Income $250,000 and Up
- Exemptions claimed for dependent children and related expenses will be phased out for joint filers whose adjusted gross income exceeds this amount.
Tax Requirements for Income $450,000 and Up
- Taxpayers whose taxable income exceeds this amount now have a 39.6% tax bracket.
- You may also be required to pay higher taxes on capital gains, rental property incomes, and net investment income.
We provide invaluable financial and accounting services in Massachusetts beyond tax preparation and filing. If you need assistance managing your finances, or if you are considering starting your own business, we can walk you through the complicated process of establishing a sound plan of action.
Questions about filing your income taxes? To learn more about new tax requirements, or to schedule an appointment with Ann Irons, CPA, LLC, contact us at (508) 966-0700. Irons, who has a master’s degree in taxation, brings more than 15 years of experience in complex financial matters. We serve individuals and businesses in Bellingham, Franklin, Woonsocket, Mendon, Medway, and the surrounding communities.
Ann spent over 25 years in the financial service industry, gaining knowledge and experience that allows her to provide an array of tax, bookkeeping, and accounting services for her clients. Relying on a stringent code of ethics and a dedication to maintaining the highest industry standards, Ann works hard to ensure her clients receive the quality service they’ve come to expect. A member of AICPA and MSCPA, Ann has also had an article featured in the renowned publication, Banker and Tradesman. 
