How much you’ll pay if you don’t have health insurance If you can afford health insurance but choose not to buy it, you must pay a fee called the individual shared responsibility payment. (The fee is sometimes called the “penalty,” “fine,” or “individual mandate.”) You owe the fee for any month you, your spouse, or your tax dependents don’t have health insurance that qualifies as
We Now is a Good Time to Plan for Next Year’s Taxes You may be tempted to forget about your taxes once you’ve filed but some tax planning done now may benefit you later. Now is a good time to set up a system so you can keep your tax records safe and easy to find. Here are some tips to give you a leg up on next year’s taxes: Take action when life changes occur. Some life events can change the...
Do You Tax Plan All Year Round? Tax season ends in 32 days, April 18 and tax professionals have been working diligently preparing tax returns for taxpayers that hope to receive a refund. Unlike the average taxpayer that does not tax plan year round, unless their situation changes, the average business owner needs to be tax planning year-round. An income tax planning strategy should be in place with quarterly or semi-annual reviews and meetings with your tax expert should not be be overlooked. Especially import...
IRS Releases Dirty Dozen Scam List: Don’t be a Victim Each year, people fall prey to tax scams. That’s why the IRS sends a list of its annual “Dirty Dozen.” Stay safe and be informed – don’t become a victim. Identity theft. Identity theft, especially around tax time, is at the top of the “Dirty Dozen” list again this year. The IRS continues to aggressively pursue criminals who file fraudulent returns using someone else’s Social Security number. The IRS is making...
IRA FAQs - 2015 Contributions How long do I have to make 2015 IRA contributions? You can make 2015 IRA contributions until April 18, 2016, excluding extensions. How much can I contribute to an IRA? The contribution limit for 2015 and 2016 is $5,500, or $6,500 if you’re age 50 or older. Your Roth IRA contributions may also be limited based on your filing status and income. See IRA Contribution Limits. Is my IRA contribution deductible on my tax return? If neither you nor your spouse is covered...
Significant Tax Benefit: EITC Millions of taxpayers who earned $53,267 or less last year may qualify for EITC for the first time in 2016, making awareness critical. “One-third of the population eligible for EITC changes each year as their personal circumstances change,” said IRS Commissioner John Koskinen. “We want workers who may qualify for EITC for the first time to have all the information they need to get the EITC and get it right. This is an important credit for hard-working Americans,...
Protecting Americans Against Tax Hikes Act of 2015 At the 11th hour, again, Congress decided to extend many tax breaks, commonly referred to as Extenders. The new law is called Protecting Americans Against Tax Hikes Act of 2015 which extended some permanently while some were extended another two years. These breaks affected both businesses and individuals. I am sure that if your tax professional is an Enrolled Agent, he or she is up on these many laws due to their requirement for...
Top 10 Year-End Tax Tips You Should Not Ignore As 2015 comes to close, SFS Tax & Accounting Services is offering these year end 10 tips: 1. Keep an eye on Congress and the extender rulings 2. Document your business activities 3. Prepare your information reporting 4. Get your charitable contributions in order 5. Remember your state and local tax obligations 6. Check your state residency status 7. Remember to accelerate deductions and defer income 8. Manage your gains and losses 9. Bunch itemized deductions 10. Increase withholdings to make up...
For Small Businesses: IRS Raises Tangible Property Expensing Threshold to $2,500; Simplifies Filing and Recordkeeping The Internal Revenue Service has simplified the paperwork and recordkeeping requirements for small businesses by raising from $500 to $2,500 the safe harbor threshold for deducting certain capital items. The change affects businesses that do not maintain an applicable financial statement (audited financial statement). It applies to amounts spent to acquire, produce or improve tangible property that would normally qualify as a capital item. The new $2,500 threshold applies to any...
Tax Tips for Deducting Gifts to Charity This Holiday Season The holiday season often prompts people to give money or property to charity. If you plan to give and want to claim a tax deduction, there are a few tips you should know before you give. Rules for Charitable Contributions of Clothing and Household Items Household items include furniture, furnishings, electronics, appliances and linens. Clothing and household items donated to charity generally must be in good used condition or better to be tax-deductible....
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