There aren't a lot of changes for the new year. Congress will be tweaking the tax laws all year, putting back some things that have expired, changing a few others. Watch the news.
Social Security benefits didn't get a cost-of-living adjustment. And there's no change in the Social Security wage base; it stays at $106,800. FICA taxes are 6.2 percent up to that amount, plus 1.45 percent for Medicare. The self-employed pay double.
For your health savings account, the annual limit on deductible contributions rises to $6,150 for those with family coverage and to $3,050 for single coverage. Those born before 1956 can add another $1,000. Deductions for long-term-care insurance go up to $4,110 per person for those 71 and older, $3,290 for those 61 to 70, $1,230 for individuals 51 to 60, $620 for those 41 to 50 and $330 for age 40 and younger. Workers terminated before March 1 of this year can qualify for another six months of COBRA subsidy.
We keep up with the latest tax change, so you don't have to. Come see the tax people at G M Hietpas CPA, LLC.