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.
In this issue:
The Month of January:
With the flip of a switch, a number of tax provisions that expired at the end of 2013 are now back on for 2014 tax returns. Outlined this month is a list of the more common laws that have been extended for 2014, but are off once again in 2015. Also included are the mileage rates for use in 2015, a general interest article describing the increasingly popular peer-to-peer lending phenomena, and a quick recap of things to consider as you start gathering your 2014 tax records.
Should you wish to review your situation please feel free to call. Also feel free to forward this newsletter to someone who may benefit from this information.
December Tips....
The Social Security Administration announced that the maximum earnings subject to social security tax in 2015 will be $118,500.
The "nanny tax" limit for 2015 remains at the 2014 limit of $1,900.
You may have a deduction for moving expenses
If you moved in 2014 because of a new job location, you may be entitled to a tax deduction for your moving expenses.
Recent job statistics indicate that more employers are using part-timers to deal with variations in workload and for short-term projects. Here are a few tips your business will find useful if you hire part-time workers.
IRS issues "nanny tax" reminder
The IRS reminds taxpayers not to overlook their responsibilities under the "nanny tax."
Warmest thoughts and best wishes
for a wonderful Holiday
and a Happy New Year.
May peace, love and prosperity
follow you always
