By Lynne Adkins
PHILADELPHIA (CBS) – As you prepare for this year’s tax season, there are some changes you may need to understand.
You will have had to pay out a lot more on medical issues if you want to start deducting them from your federal taxes. James Newhard a CPA in Paoli says last year you had to spend 7.5-percent of your income on medical expenses — now it’s higher.
“They’ve bumped that threshold for 2013 for any taxpayers under the age of 65 they have to reach a thresh hold of 10-percent of their adjusted gross income before a single dollar would be an allowed deduction.”
If you have income of more than $200,000, depending how you file, you’ll pay an extra 3.8 percent tax for the Net Investment Income Tax, and those making more than $400,000 will pay an extra five percent in capital gains.