New Tax Laws Reviewed - KULR-8 Television, Billings, MT

New Tax Laws Reviewed

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The Affordable Health Care Act brings uncertainty to taxpayers in 2014.

Laser 1040 Enrolled Agent, Becky Spencer, said due to the Affordable Care Act, taxpayers have a lot of questions about filing. "The thing that will probably affect most people is that instead of having to stand the first 7.5 percent of your income before your medical starts to count for itemized deductions, this year it's going to be 10 percent for everyone under 65. That's the number-one thing that will affect this year's return on the Affordable Care Act," Spencer said.

That means people will pay more for medical bills than before. After reviewing the fine print, Becky said there are a couple interesting ways to avoid the penalty for not having insurance. Becky said if you've been served an eviction or have a shut-off notice from your power company, you will be excluded from the fine. Despite loopholes, Becky said the best way to avoid an audit is being honest and organized. "It's best to get everything together, even if you think it's not enough to use. Unless, you think your income is so low you're going to get it back anyway," Spencer said.

Becky said it's also the first year gay married couples can jointly file their federal taxes. She said the change might help same-sex couples with insurance, but not on returns. "If one person is a stay-at-home spouse, then they're going to do just fine and will be okay on their taxes. But, if they're both working, they're going to do worse on their taxes," Spencer said.

Becky said taxpayers should expect to see their employers mailing out W-2s at the end of January. She said she expects business to pick up at that time. The deadline to file your taxes without facing a penalty is April 15th. For more information about filing you can click on Connections.