While lawmakers in Washington wrestle with the "fiscal cliff" tax issues, it's tough for the average person to know how to plan for the new year. Even tax experts and the IRS are in a holding pattern. We visited Malin, Bergquist, a local accounting firm. They say it's a pretty safe bet that your taxes are going up in the new year, no matter how lawmakers work things out.
CPA Craig Moffatt says the general advice he's giving clients is the opposite of what he would normally say this time of year. Instead of trying to defer tax by pushing income into next year, he's advising people if they have the option to take that income now if you can, and push expenses into 2013. As for taxpayers, they're not happy with Washington that they pushed a fiscal cliff compromise to the deadline and beyond. "Absolutely I'm concerned about it, " said Pat O'Neill, "and I'm annoyed, angry and ashamed of my country." O'Neill told us lawmakers need to start being leaders instead of politicians.
Once lawmakers figure this out, the IRS and tax software folks will have to catch up, issuing new tax tables and forms. That means any changes won't be reflected in your first paychecks of the new year and your tax refund will likely be later than ever.
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