Early preparation of the 2013 returns

While the Internal Revenue Service and the Wisconsin Department of Revenue will not accept and process any e-file tax returns until January 31, 2014, you do not have to wait until then to complete your tax return.  Paid tax preparers and tax software companies are encouraging clients to complete their returns prior to Jan 31, 2014 so that their returns can be submitted as soon as the IRS and Wisconsin Department of Revenue start accepting returns. 

By completing your return before January 31, 2104 your return can be filed as soon as the returns begin to be accepted.  Taxpayers filing on January 31, 2014 will be assured that they are waiting the shortest possible time to receive their refund. 

The Earned Income Tax Credit (EITC) is among the federal government’s biggest anti-poverty programs of any kind and allows many taxpayers to receive a tax refund even if they had little or no taxes withheld from their pay check.  It often wipes out federal income-tax liability for low-income working families, and frequently provides cash payment of several thousand dollars over and above the taxpayer’s tax bill for 2013. 

In 2013 the Earned Income Tax Credit has the following limits:

Earned Income and adjusted gross income (AGI) must each be less than:

  • $46,227 ($51,567 married filing jointly) with three or more qualifying children
  • $43,038 ($48,378 married filing jointly) with two qualifying children
  • $37,870 ($43,210 married filing jointly) with one qualifying child
  • $14,340 ($19,680 married filing jointly) with no qualifying children

Tax Year 2013 maximum credit:

  • $6,044 with three or more qualifying children
  • $5,372 with two qualifying children
  • $3,250 with one qualifying child
  • $487 with no qualifying children

Investment income must be $3,300 or less for the year.

If it appears that you are entitled to a refund for 2013 don’t hesitate to file your returns as early as possible.

Mike Sargent CPA

A Master Tax Advisor of H&R Block at N88 W16624 Appleton Ave, Menomonee Falls, WI and SCORE volunteer

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.


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