MADISON, Wis. (WSAU) — The head of the Wisconsin Department of Revenue says you’ll be seeing some changes in your 2014 tax return, and probably a lower bill as well.
Secretary Rick Chandler says a lowered base tax rate from 2013 is still in effect. “And that affects everybody, because all taxpayers pay taxes on the first portion of their income at the lowest rate which is 4 percent. So the reduction on that will benefit everybody.” That also means a slightly smaller tax return than you might be used to. “We did reduce the amount of tax we withhold from people’s paychecks to reflect the lower rates. So people are getting less money taken out of paychecks meaning when you get to refund time it will be a slightly smaller refund.”
There are a number of other changes to deductions and other expenses for this year’s return. “There are increases in the amount that can be taken for child and dependent care expenses. People can now deduct private school tuition, a slight increase that can be deducted for college savings accounts, and there are some other changes as well.” If you’re getting subsidies and other support through the Affordable Care Act, Chandler says you’ll want to turn to the IRS itself and take a look at how that is going to be taxed.
As always, Chandler recommends E-filing your tax returns and says that most of the issues you may run into will be handled automatically online or through your annual tax return software.
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