End of January Tax Tips...
You need not make the January 15 quarterly estimate for 2014 if you file your 2014 tax return and pay taxes due by February 2, 2015.
February 2 is the deadline for employers to provide 2014 W-2s to employees.
Don't forget about the nanny tax!
A good domestic worker can help take care of your children, assist an elderly parent, or keep your household running smoothly. Unfortunately, domestic workers can also make your tax situation more complicated.
Who have you designated as beneficiaries for your insurance policies and retirement accounts? If you can't remember, you're not alone. But it's worth checking. If you make the wrong decision, it could affect who inherits those assets. In some cases, it could also change the taxes your beneficiaries will pay and the value they'll receive. Here are some key facts about beneficiary designations.
What are they?
This is a question we are ask this time of year, so here are some Quick guidelines:
What will happen to your business if you die, retire, or become disabled? If you are the owner of a small business, you need a means for the transfer of that business in the event something happens to you. With a "buy-sell" agreement, you are able to plan for many contingencies over which you would otherwise have little control. A buy-sell agreement should establish a price for the business and the method of succession.
Catastrophes, thefts, natural disasters, accidents, fires – they happen. If such misfortunes strike, a well-researched and up-to-date homeowner's insurance policy can keep your family's finances afloat during trying times. Proceeds from a homeowner's policy can provide necessary funds to replace your house and belongings. A good policy can also protect against unexpected liabilities. If you're considering a new homeowner's policy (or already have one), watch out for some common pitfalls, including the following:
I thought some readers of my blog might be interested in this fairly common topic, for which I did some research. I see if commonly where a parent buys a home in their name, and more improtantly, using their credit, the a child lives in the home and makes ll the mortgage payments. Typically, a non-owner cannot take the deduction for the mortgage interest paid and real estate taxes... this discusses the basis of law for which this deduction for the child may be possible...
As a U.S. citizen or resident working abroad, you may be able to exclude from income all or a portion of your foreign earnings.
To claim the foreign earned income exclusion, your tax home (the general area of your main place of business, employment, or post of duty) must be in a foreign country throughout the period
Reasons to File Your Taxes Early
While late changing tax laws make it impossible to file your income tax return prior to January 20th this year, there are a number of reasons to file your return as soon as possible. Here are five of the most common:
If you recently purchased U.S. savings bonds and wish to know how you must report the interest income on those bonds...
If you use the cash method of accounting, as most individual taxpayers do, you generally report the interest on U.S. savings bonds when you receive it. However, you report the interest on series EE, series E, and series I bonds in either of the following ways:
Not all "income" is taxable
There are several sources of revenue that are not subject to income tax.
Here are the most common sources of money that are not taxed on your federal income tax return:
Make retirement plan contributions early
With retirement plan contributions, it's the early bird who maximizes tax-deferred earnings.
Here is a quick look at 2015 tax rates and their associated income levels. Use this information to help prepare for your tax situation this year. Using your 2014 tax information, you can plan for your tax obligation next year starting now.
Don't forget that tax payers in the higher income levels are also subject to an additional .9% Medicare surtax as part of the Affordable Care Act. This will impact those with incomes over:
Ideas to Help Audit Proof Your Return
No one likes the stress involved when your tax return is under the audit spotlight. Here are some ideas to avoid some of the more common audit triggers.
As the fall leaves begin to turn, it seems an appropriate time to begin a discussion about the new reporting required by the Affordable Care Act. We want you to understand what this legislation entails so that you save the appropriate documentation and are prepared for the questions that we will need to ask you.
Sometimes you need to close your corporation... I have seen to many businesses struggle with debts that are unbearable as circumstances change; a downward eceonomy, technology obsolesence or change in customer demographics. Many owners fear the closure, as they do not know of the ability to salvage some tax dollars through the closure.
What happens if They Won't Fix My 1099!
It is late January and you realize the 1099-MISC you receive is in error. In fact, it overstates your income by $2,000. What should you do?
Gather your facts. Put yourself in the shoes of the vendor, bank or investment company representative. Gather evidence they will need to support your claim to correct the tax form. This includes receipts, e-mails, and statements. Have your account number handy as well.
California - Healthy Workplace Healthy Family Act of 2014 (AB 1522)
IMPORTANT REQUIREMENTS FOR ALL EMPLOYERS
Earlier this year, the California Legislature passed the Healthy Workplace, Healthy Families Act of 2014 (“HFA”) which requires all employers with employees within the State of California, regardless of size, to provide paid sick leave to employees.
Starting January 1, 2015, employers must display a poster created by the Labor Commissioner informing employees of their rights under the HFA.
