Have You Heard About These New Income Tax Changes?
February is almost over. Can you believe it? That means the annual income tax return deadline is fast approaching. If you still haven’t done your taxes then there are some important changes you should know about. Hopefully, if you’ve already filed, then you were aware of these changes beforehand. If not, and you think they could impact your return then you could always file an amended return.
In any case, here are some key changes to be aware of. The due date for taxes this year is actually Monday, April 18 in most states, however, for those taxpayers that live in states that celebrate Patriot’s Day the due date falls on Tuesday, April 19. First, for those claiming certain credits, like the child tax credit and the American Opportunity Credit, the IRS now requires a Social Security or tax ID number.
You’ve heard of an IRA, now the U.S. Treasury Department is offering myRA, a free retirement account that allows eligible taxpayers to fund it either through their personal accounts or via payroll deductions. Elsewhere, the Personal Exemption rate has increased to $4,000 for the majority of taxpayers. For those that make more than $258,250 the exemption is not as much.
Another deduction that has gone up from last year is the standard deduction. It has increased $100 for individuals and $200 for married couples filing jointly from 2014, to $6,300 and $12,600 respectively. Meantime, if you use a vehicle for business you can use the mileage used for that business as a deduction. While that is not new, the rate per mile for 2015 was 57.5 cents, up from 56 cents in 2014.
Of course, if you still need help with your tax returns you can contact us at 1-877-CPA-2006 or by clicking here.
Section 213 Medical, Dental, etc., Expenses
Section 213 Medical, Dental, etc., Expenses (a) Allowance of deduction There shall be allowed as a deduction the expenses paid during the taxable year, not compensated for by insurance or otherwise, for medical care of the taxpayer, his spouse, or a dependent, to the extent that such expenses exceed 7.5 percent of adjusted gross income.…
Prevent an IRS Audit, 10 Strategies
Prevent an IRS Audit, 10 Strategies Do you like to prevent an IRS audit, well, here are 10 strategies that might help avoid an agent making a visit to your home or office. I don’t know many people who like these experiences, but knowing strategies to prevent an unwanted visit could certainly save you from…
10 Strategies When Handling an IRS Audit
10 Strategies When Handling an IRS Audit The IRS is using new technology to process tax returns and conduct tax audits. As more people are submitting returns through Electronic Filing, the IRS efficiency in processing returns is improving. They also have more data in their system to identify tax returns with non-compliance issues. The IRS…
When to Exercise Your Stock Options
When to Exercise Your Stock Options “Deciding when to exercise your option can be a complex decision. Therefore, it is important to know the rules before you decide to cash in your options.” Know the Rules Employee stock options can provide you with a substantial source of deferred income and permit you to control the…