2 Tickets For The iPad Drawing in March
+ Standard Mileage Rates for 2013
Security & Medicare Updates
wanted to let you know that as February ended we now have 144
tickets in for the drawing for the iPad with Retina Display.
Everyone who brought their tax
return information in during February received 3 tickets for
And now that we are in March
(if you have not done so already) when you bring in your
tax return information you will receive 2 tickets for
the iPad drawing!
Don't wait until next month in
April as you will only receive 1 ticket for the drawing.
Also don't forget that when you
REFER someone to us this tax season, you receive a $50.00
CREDIT on your tax return fee (plus the person you refer
received 3 tickets for the iPad drawing too!).
Call our office at 704-552-8689
if you have a question or are ready to get started!
The 2013 standard mileage rates for use of an automobile are
56.5¢ per mile for business miles driven (an increase of 1¢
from 2012), and 24¢ per mile for medical or moving purposes
(up 1¢ from 2012). The rate for rendering gratuitous services
to a charitable organization remains unchanged at 14¢ per
The standard mileage rate for business is based on an annual
study of the fixed and variable costs of operating an
automobile. The rate for medical and moving expenses is based
on variable costs. Taxpayers always have the option of
calculating the actual costs of using their vehicle rather
than using the standard mileage rate.
A taxpayer may not use the business standard mileage rate for
any vehicle after using any depreciation method under the
Modified Accelerated Cost Recovery System (MACRS) or claiming
a Section 179 deduction for that vehicle, or for more than
four vehicles used simultaneously.
& Medicare Update
The annual inflation adjustments
have been made for the various social security amounts and
thresholds. So, we thought it would be a good time to update
you for 2013.
The social security wage base, for computing the social
security tax (OASDI only), increases to $113,700 in 2013, up
from $110,100 for 2012. The additional $3,600 for 2013
represents an increase of 3.3% in the wage base. There is no
taxable earnings limit for Medicare (HI only) contributions.
New for 2013, the 0.9% Medicare Surtax is imposed on wages and
self-employment (SE) income in excess of the following
modified adjusted gross income (MAGI) threshold amounts:
$250,000 for joint filers, $125,000 for married separate
filers, and $200,000 for all other taxpayers. The employer
portion of the tax is not increased. This new tax is a
provision of the Patient Protection and Affordable Care Act.
For social security beneficiaries under the full retirement
age, the annual exempt amount increases to $15,120 in 2013 up
from $14,640 in 2012. These beneficiaries will be subject to a
$1 reduction in benefits for each $2 they earn in excess of
$15,120 in 2013. However, in the year beneficiaries reach
their full retirement age, earnings above a different annual
exemption amount ($40,080 in 2013, up from $38,880 in 2012)
are subject to $1 reduction in benefits for each $3 earned
over this exempt amount. Social security benefits are not
reduced by earned income beginning with the month the
beneficiary reaches full benefit retirement age. But remember,
social security benefits received may be subject to federal
Individuals may have to pay federal income taxes on up to 85%
of their benefits. Inclusion within taxable income can occur
if you have substantial income from wages, self-employment,
interest, dividends, and other taxable income, in addition to
your benefits. However, no one pays federal income tax on more
than 85% of his or her benefits.
The Social Security Administration estimates the average
retired worker will receive $1,261 monthly in 2013. The
average monthly benefit for an aged couple where both are
receiving monthly benefits is $2,048. These amounts reflect a
1.7% cost of living adjustment (COLA).
The maximum 2013 social security benefit for a worker retiring
at full retirement age is $2,533 per month, up from $2,513 in
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As always you can call our offices if you have any
questions about these or any other accounting, tax,
financial planning or Quickbooks related issues, at
W. Edward Newton Jr.,
Certified Public Accountant