Tax season

Finally I finished my tax via Turbo Tax. Some interesting questions and experiences could be helpful to you.

* This is the last year for low tax on l.t. capital gain unless there are changes. Take advantage of it. For detail click here.

For 15% or lower tax bracket, l.t.capital gains and dividends are virtually 0 (not 0 due to some social security adjustment). If you're still working with higher tax bracket, it is 15% max. (vs the 20% max. in 2013). Dividends in 2013 will be the income tax rate plus 2 or 3% for Medicare. Consider passing appreciated securities to your children if they can profit with lower tax rate. Try Wikipedia for updated info.

* Turbo Tax treated my MA refund as income. If it is still not fixed, use the refund for next year's tax withheld, so you will not have a refund. I used it as estimated tax for next year.

* MBTA passes are deductible for MA.

* The cost basis for stocks will be kept after 1-1-2011 by your broker and reported to IRS. When you have appreciated stocks/assets, the way to avoid capital gain taxes is to keep them for ever. When you pass away (eventually every one does), their cost basis will be stepped up, hence there will be no Federal taxes. However, your estate will be larger.

* Turbo Tax allows you loan the software to others - I do not think it is a good idea for the company selling Turbo Tax but great for us. The one who loaned mine uses e-file. It used to be: You need to print the final tax return on the computer that you installed Turbo Tax.

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I'm not a professional in taxes. Consult your tax lawyer and accountant for details.