February 15, 2014
IRS Updates Essential Tax Publications
The Internal Revenue Service (IRS) recently has issued updated versions of more essential tax publications, all for use beginning with the 2013 tax year and for preparing 2013 returns.
Publications 502 and 503 are similar to their prior versions with revisions to relevant dollar amounts to reflect 2013 inflation-adjusted values. Additionally, Publication 502 now reflects that beginning Jan. 1, 2013, taxpayers can deduct only the portion of their medical expenses that exceeds 10 percent of adjusted gross income (7.5 percent if the taxpayer or spouse was born before January 2, 1949). Previously, the 7.5 percent threshold applied to all taxpayers. Recent IRS guidance on same-sex marriage and changes to the use-or-lose rule for health FSAs are discussed.
Publication 969 is compiled to help taxpayers take advantage of the tax benefits of HSAs, Archer medical savings accounts (MSAs), health flexible spending accounts (FSAs), and health reimbursement arrangements (HRAs).