(Newswire.net — February 2, 2015) Marshfield, MA –It’s a new tax year. Congress extended many provisions that were due to expire in 2014.
John Topham, CPA, a founding partner of Damon, Topham & Company in Marshfield, MA, offers a quick primer on key tax changes and extensions to be aware of when filing this tax year.
Some of the 2013 tax provisions that were set to expire in 2014 have been extended, including the Net Investment Tax. Married couples filing jointly with net investment income or modified adjusted gross income of more than $250K, or individuals with net investment income or modified adjusted gross income of $200K will owe the 3.8 percent Net Investment Tax.
The 0.9 percent Medicare surtax continues. Taxpayers with wages or self-employment income above $200K for individuals or $250K for joint filers will see this additional withholding on their pay stub or as an increase in self-employment tax.
Eligible taxpayers can get a deduction for college tuition and other educational fees. The American Opportunity Tax Credit has been extended through 2017 and for those whose income qualifies; the credit can be claimed for four post-secondary education years and the maximum annual credit is $2500 per student.
The Mortgage Insurance Premium has been extended. Qualified homeowners may take a deduction for their mortgage insurance premiums, which enables them to save additional taxes.
Small business owners who purchased equipment, autos, computers and machinery prior to December 31, 2014 can take advantage of Section 179 tax break extension with 50 percent bonus depreciation.
About John Topham
Topham is a CPA registered in Massachusetts, and head of the Business Development team. He is a member of the American Institute of Certified Public Accountants and the Massachusetts Society of Certified Public Accountants. He has been the financial editor for the “New England Movers Magazine” and has authored numerous other articles. He holds a Bachelor of Science degree in Accountancy from Bentley College.
Topham co-hosts on Attorney Mark Greene’s “So What About That Law!” show on WATD 95.9 FM. The show broadcasts live every Sunday morning at 10:30 a.m. Topham discusses a wide range of tax related topics with Greene on the fourth Sunday of every month through June 2015.
Topham noted, “The Sunday show is a great educational resource for tax and legal issues and we encourage folks to tune in.”
For tax assistance, contact Damon, Topham & Company at 781-837-1993.
About Damon, Topham & Company
Damon, Topham & Company is a full service multi-disciplined firm that has been serving the South Shore for more than 20 years. Damon, Topham & Company provides auditing, accounting and taxation services as well as business valuation, estate, individual and corporate tax planning, consulting and financing solutions.