Flemington, PA -- (SBWire) -- 08/26/2013 --Next year’s tax season may seem far away, but it is never too early to begin strategizing when it comes to saving money on taxes in 2014. That is why Prestige Wealth Accounting Group, one of the leading CPA firms in NJ, is pleased to announce new tax saving strategies for their clients. Since there are a number of new taxes, and increases on other taxes due to recent health care legislation (“Obamacare”), now is more important than ever to minimize tax burden. It is better to be prepared, than to be left flustered by the changes, come next April.
The first tax strategy is to boost retirement savings. Individuals who are turning 50 or older are able to contribute up to $23,000 to a 401(k) plan. Self-employed taxpayers who are 50 or older can also put up to $56,000 in a 401(k). Individuals interested in reducing their required minimum distributions can convert their traditional IRA money to a Roth IRA. This strategy should be undertaken with the advice of an income tax professional in order to gain the greatest benefit.
Another strategy is to track all medical expenses because in the upcoming year, the tax hike is causing all taxpayers who are 65 years or younger to be able to only write off medical bills that exceed 10%. This is a 2.5% increase from years past. Even though these changes are for individuals who are under 65, those who are over 65 still qualify for the 7.5% threshold. The new health care laws also limit contributions to flexible spending accounts to $2,500. Individuals should keep all receipts for the flexible spending account because they could be eligible for deductions.
For even more information on strategies to use when preparing taxes for next April, visit the Prestige Wealth Accounting Group website. As one of the leading CPA firms in New Jersey, Prestige Wealth Accounting Group offers news, blogs, research, articles, and much more information on their newly-designed website.
About Prestige Wealth Accounting Group
Prestige Wealth Accounting Group is a premier accounting firm that is committed to integrity, knowledge and offering first-class service to their clients. The company specializes in CPA services, and has experience providing high-net-worth individuals and businesses with concepts and strategies to help them reduce their taxes and simplify their financial life. The company is dedicated to taking an active role in assisting people with the constantly changing tax laws.
Visit www.prestigewag.com to view the redesigned website and learn more about what services the NJ accountant provides.
Prestige Wealth Accounting Group Announces Tax Saving Strategies for 2013