Tax season is hitting its peak, and people are finally starting to hunker down to do their tax prep for 2014. What they're finding, though, is that taxes seem to be more complicated than ever, and the return of some complex provisions will actually make many pay more taxes than they expected this year.
In the following segment from their video guide to investment planning, Motley Fool director of investment planning Dan Caplinger talks with Fool markets/IP bureau chief Mike Klesta about how stealth-tax increases could hit many taxpayers. Dan notes that the tax laws have gotten more complicated because of provisions that reduce the ability of high-income taxpayers from getting the benefit of itemized deductions and personal exemptions. With complex calculations, these provisions are hard to figure out, but they have the net effect of raising your tax bill in a less-than-transparent way. Dan concludes that it's essential to know about provisions like these in order to avoid getting hit with a surprisingly high tax burden as you complete your tax prep in 2014.
Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.