Although delayed because of last fall’s government shutdown, tax filing season is officially upon us! Several important changes to the U.S. tax code went into effect during 2013, and you will likely notice the effects of some of those changes when you complete and file your 2013 federal income tax return. In particular, you may discover that you owe more to the IRS for the 2013 tax year than you did in prior years, even if your income has not increased.

Additionally, due to recent changes to the federal income tax regime, income tax planning has become a more important component of estate planning. In particular, because of increased capital gains rates, the new Net Investment Income Tax, and higher federal estate and gift tax exemptions, some taxpayers should consider revising their estate plans and gift-giving strategies to make maximum use of the basis step-up that occurs upon death and to reduce the capital gains that their beneficiaries will realize upon the eventual sale of appreciated assets.

The attached PDF summarizes important income tax changes that you may notice when you prepare and file your 2013 income tax return, and outlines how changes to the income tax laws relate to your estate planning.