January 31, 2014
Donald Zidik, Senior Manager, Tax & Business Services, Featured in The Wall Street Journal Article, "Don't Make These Tax Mistakes."
By Laura Saunders
Fifteen common tax-filing errors that can cost you dearly.
How should you feel about this year's taxes? It's complicated.
The Internal Revenue Service opened its filing season Friday, and by midnight on April 15 the agency expects to hear from individual taxpayers filing nearly 150 million returns for 2013.
Thanks to the growing complexity of the tax code, that is 150 million opportunities for U.S. taxpayers to shortchange either themselves or Uncle Sam by making multiple errors.
For 2013, taxpayers will have to deal with a new tax on investment income, a new limit on deductions and a new phaseout of exemptions, among other provisions.
Overlooking medical expenses.
Many people can't deduct medical expenses because of the high hurdles: either 7.5% or 10% of adjusted gross income, depending on the taxpayer's age and whether he owes alternate minimum tax.
But some who qualify for a deduction—many of them elderly—don't take full advantage of it, says Donald Zidik, a tax specialist at Marcum LLP in Needham, Mass.
Deductible costs include not only the uncovered portions of drugs and doctor's bills but also Medicare premiums and some nursing-home or assisted-living expenses. For a full list, see IRS Publication 502.
Mr. Zidik urges taxpayers who can claim a dependent (such as a parent) to remember that they can often deduct eligible medical expenses they pay for that person.
Click here to read the full article on www.wsj.com >>