Mid-year Tax Planning: Personal Exemptions and Itemized Deductions

We’ve reached the mid-year point and there is no better time than now to start your 2013 tax planning!  Here are some things you should know in regards to personal exemptions and itemized deductions as you proactively begin planning for 2013.


  • Each taxpayer and dependent in a tax return is allowed a personal exemption of $3,900, which reduces taxable income and the related income tax. A limitation that was in the tax law several years ago had been resurrected in 2013.


  • The total amount of itemized deductions is reduced for single taxpayers with more than $250,000 in adjusted gross income and married taxpayers filing joint returns with adjusted gross income over $300,000.  A tax payer may not lose more than 80% of itemized deductions.

See also “Tips on Personal Income” http://www.dh-cpa.com/404

See also “Tips on Business Income” http://www.dh-cpa.com/405

Davis & Hodgdon Associates has been assisting businesses and individuals in the Burlington Vermont Metro area for more than 20 years. If you have any questions or concerns please feel free to call 802.878.1963 or email [email protected].

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