New Year, New Changes Coming With Taxes - 47 ABC - Delmarva's Choice

New Year, New Changes Coming With Taxes

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SALISBURY, Md. - Changes are coming in 2014.

Not just with the much-talked about health care system, but also the dreaded tax season.

Ed Rommel, a certified public accountant for Twilley, Rommel & Stephens, P.A. says some changes are "going to catch a lot of people off guard." Rommel says come January 1st, one major tax break is being drastically reduced and another is being eliminated altogether: write-offs on newly bought equipment, which up to this point have had a $500,000 ceiling and bonus depreciations.

"A five hundred dollar-ceiling goes to a $25,000 ceiling and the bonus depreciation, which is a 50 percent depreciation goes away entirely," said Rommel.

According to Rommel, if left in place, these breaks could have saved farmers and small businesses thousands of dollars this April. Rommel tells WMDT about 20 percent of his clients have missed Tuesday's deadline.

Another change is looming: new tax brackets, something anyone expecting to earn near the top end of a bracket should be especially wary of, because yhings like unexpected income or year-end bonuses can push filers into the next bracket.

"It's going to sneak into when I do your taxes in March and you say, 'well last year, I got a refund and this year you're telling me I got owe $400? Why is that?' It's because of those changes," said Rommel.

Even if you missed these deadlines, you can still make next year's returns a little easier to handle. Turbo Tax reiterates that you should be mindful of holiday bonuses because they can bump you in a higher tax bracket. Also, look into making charitable contributions, which are deductible.

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