Income Tax
January , 2013
 
Happy New Year!  We hope that 2013 brings you and yours the joys of a new beginning.  My wife Mary is a full-time professor at Peru State College and I continue to teach Business Law at Bellevue University as well as Business & Contract Law, Business Finance, Management and Investing online at Peru State College.  2013 looks to be an active and busy time in the Lundholm household.            

Now on to taxes.  The following letter highlights some tax changes for the 2013 tax year and some other items that may interest you and some other things to keep in mind for the future.  I hope that you find this letter to be helpful and informative.  I want to take this opportunity to thank you for your business and let you know that I look forward to working with you and yours in the future.             

There will be no increase in tax preparation fees this year.  If there are no changes in your situation that results in a more complex tax return, there will be no increase in fees.   All returns that can be e-filed will be filed electronically via a secured network.  This should result in faster refunds to you and more accurate filing of your returns.          

My office address, shown above, is a professional lawyers’ office (the building with the tall white pillars) located South of the Shear Madness hair salon just South of Center Street on 87th Avenue.             
I will continue to teach the Business Law classes at Bellevue University, now on Tuesday and Thursday afternoons.  I will, however, be available for appointments all day on Mondays, Wednesdays and Fridays and mornings on the days I teach.   The office is open from 9:00 AM to 3:00 PM Monday through Friday if there is something you need to pick up or drop off.             

I have established a presence on the internet at lundholmlaw.com.  There are links from that site to my email address and other destinations of interest. 

ITEMS PERTAINING TO INCOME TAX: FOR 2012TAX RATES, INCOME LIMITATIONS, ALLOWANCES & EXCLUSIONS

Individual Tax Rates:


MARRIED FILING JOINTLY            SINGLE PERSONS                 MARGINAL RATE
Over But Not Over Over But Not Over Rate
$0 $17,400 $0 $8,700 10%
$17,400 $70,700 $8,700 $35,350 15%
$70,700 $142,700 $35,350 $85,650 25%
$142,700 $217,040 $85,650 $178,650 28%
$217,040 $388,350 $178,650 $388,350 33%
$388,350 & Over $388,350 & Over 35%

Earnings for Social Security Recipients 62 – 65 Without Penalty:
   
Year                        Age 62 – 65                          Over Age 65
   
2011                           $14,140                               Unlimited*
   
2012                           $14,640                               Unlimited*


* No limitation on earnings in and after the month in which a person attains full retirement age.  If born in 1941, full retirement age is 65 years plus 8 months; if born in 1942, full retirement age is 65 years plus 10 months; if born in 1943 – 1954, full retirement age is 66 years of age.


Exclusion of Social Security Benefits from Taxable Income:
Married Filing Jointly              $32,000.00
Single Persons                    $25,000.00
Married (Living Together)
Filing Separate                     $0.00, all Social Security is taxed at maximum rate.


Standard Deduction 2008:


Married Filing Jointly              $11,600                   Additional deduction if blind &/or:  
   
Head of Household              $8,500.00                    65 years of age or older (each):  
   
Single                                     $5,800.00                     Married/Qualified Widow(er)       $1,150  
   
Married Filing Separately          $5,800.00                     Single/HOH    $1,450  
   
Qualifying Widow(er)              $11,600.00                   Married Filing Separately      $1,150  


2012 Mileage Allowances:
   
 
Business                      53.25 cents per mile                    
 
Medical/Moving            23.5 cents per mile                      
 
Charity                        15 cents per mile                       



Sale
of Personal Residence:            

If gain is realized on the sale or exchange of a personal residence that has been owned and occupied as the taxpayer’s residence for at least two of the previous five years prior to the sale or exchange, capital gains of $250,000 for one individual and $500,000 for a married couple may be excluded from taxable income.  This exclusion may be available for those not satisfying the two year regulation in some circumstances.

Please send me an email or call to set up an appointment at my office in Omaha, or your home or place of business.  You should bring any and all tax forms you receive, including W-2’s and 1099’s, as well as any letters you may have received from the Internal Revenue Service or the State Department of Revenue.  Also please bring information concerning charitable donations, medical expenses and mortgage interest, real estate tax and personal tax information. 

If a Tax Worksheet is not enclosed, let me know and I will sent one to you.  Please call or send an email and I will get one in the mail without delay.

Thank you for your continued business and friendship.  I look forward to working with you.  Good luck and God bless.

Sincerely,



Robert B. Lundholm