Take your required 2014 distribution If you’re over 70½ and are required to take distributions from your IRA or other retirement account, remember that you must take your 2014 RMD (required minimum distribution) by December 31 or face a penalty of 50% of the amount not taken. If the 2014 distribution is your first RMD, you have the option of waiting until April 1, 2015, to begin your withdrawals.
IRS Issues Education Credit Reminder With schools back in session, the IRS has issued a reminder to taxpayers not to overlook available tax credits for education expenses. Tax credits are applied directly against the income tax you owe. Two available credits: the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). The AOTC can be up to $2,500 annually for an eligible student and is 40% refundable. That means you could get money back when the credit exceeds your...
IRS Repeats Warning about Phone Scams The Internal Revenue Service and the Treasury Inspector General for Tax Administration continue to hear from taxpayers who have received unsolicited calls from individuals demanding payment while fraudulently claiming to be from the IRS. Based on the 90,000 complaints that TIGTA has received through its telephone hotline, to date, TIGTA has identified approximately 1,100 victims who have lost an estimated $5 million from these scams. “There are clear warning signs about these scams, which continue at high...
Back-to-School: Check Out College Tax Credits for 2014 and Years Ahead With another school year now in full swing, now is a good time to see if taxpayers may qualify for either of two college tax credits or any of several other education-related tax benefits when they file their 2014 federal income tax returns. In general, the American opportunity tax credit and lifetime learning credit are available to taxpayers who pay qualifying expenses for an eligible student. Eligible students include the taxpayer and his or...
The “What Ifs” for Struggling Taxpayers People facing financial difficulties may find that there’s a tax impact to events such as job loss, debt forgiveness or tapping a retirement fund. For example, if your income decreased, you may be newly eligible for certain tax credits, such as the Earned Income Tax Credit. Most importantly, if you believe you may have trouble paying your tax bill, action should be taken immediately. In many cases, there are steps we can take to help ease the...
IRS Announces Direct Deposit Limits In an effort to combat fraud and identity theft, new IRS procedures effective January 2015 will limit the number of refunds electronically deposited into a single financial account or prepaid debit card to three. The fourth and subsequent refunds automatically will convert to a paper refund check and be mailed to the taxpayer. Taxpayers also will receive a notice informing them that the account has exceeded the direct deposit limits and that they will receive a paper refund...
Check your 2014 tax payments. The deadline for the third quarterly payment of 2014 estimated taxes is September 15.That’s a good date to do a quick review of the taxes you’ve paid so far for 2014, whether you pay in quarterly installments, through withholding, or both. If necessary, you can beef up your quarterly payment or adjust your income tax withholding for the remainder of the year. Be aware that withheld taxes are considered paid in equal amounts during the year,...
IRS Warns Public About Phone Scams IRS warns again about phone scams Another strong warning from the IRS is alerting taxpayers to phone scams that have already resulted in 90,000 complaints and the theft of millions of dollars. Here’s how the typical scam works: The caller claims to be from the IRS and, using hostile and abusive language, demands immediate payment of taxes by a prepaid debit card or wire transfer. The IRS reminds taxpayers it will never contact you by...
Eight Honored at the 2014 NAEA National Conference - Port St Lucie Businessman Receives Education Award Washington, DC — (August 18, 2014) The National Association of Enrolled Agents (NAEA) has presented Port St Lucie businessman Jeffrey Schneider, EA, with the Excellence in Education Award in recognition of his efforts to improve the quality and scope of NAEA education programs. Enrolled agents are federally-licensed tax practitioners who may represent clients before the IRS. Schneider is the Immediate Past President of the Florida Society of...
IRS Adopts "Taxpayer Bill of Rights" The Internal Revenue Service has announced the adoption of a “Taxpayer Bill of Rights” that will become a cornerstone document to provide the nation’s taxpayers with a better understanding of their rights. The Taxpayer Bill of Rights takes the multiple existing rights embedded in the tax code and groups them into 10 broad categories, making them more visible and easier for taxpayers to find. “The Taxpayer Bill of Rights contains fundamental information to help taxpayers,” said...
