Taxpayers and consultants await tax bill changes
JEFFERSON CITY - Taxpayers and consultants are still waiting to hear the changes to a tax bill that could affect them right before tax season.
People are starting to work on taxes as the season is right around the corner, but taxpayers can not get much done until Congress says if there will be a change or not.
According to a mid-Missouri accountant Herald Krieger, these possible tax changes could have huge effects on taxpayer deductibles and consultants workloads.
For individuals, a current $4000 tuition credit could be denied starting January 1, 2014, and a $500 house credit for energy-saving repairs could be denied as well. The tax bill changes would also take away a $250 teacher credit for expenses related to school.
Farmers could be affected in the purchase of their equipment for work. Previously farmers were able to credit up to $500,000 for equipment, but if this bill passes, this would be reduced to $25,000. Farmers also may not be able buy new equipment to be deducted starting now since the bill requires all possessions to be serviced and on the farmers premises by December 31.
The possible bill would also impact tax consultants because they may need to do extra work this year.
Consultants are waiting to see the changes before they can help their customers. Once changes are made the consultants will have to update their books and computer programs based on the bill.
Krieger said these changes may require more hours for consultants, which in turn could drive up tax return rates.
Along with changes to the systems, consultants would also have to help customers prove all business repair documentation over $200. This means business taxpayers would need their receipts to show whether the purchases were for restoration, repair or improvement.
Consultants and taxpayers are waiting to see what Congress decides because as of right now, no change has been made.