Tips for the Month - April

1. Taking the standard tax deduction is convenient, but always compare it to itemized deductions and use the option with the best tax results.

2. The federal standard deduction for 2014 is $6,200 if single, $12,400 if married and joint filing, or $9,100 for head of household.

3. To substantiate a charitable contribution, you must get a written acknowledgement from the charity for all contributions of $250 or more.

4. Did you miss the open enrollment for 2015 health insurance that ended Feb. 15? You may still be able to use the "special enrollment period."

5. The automatic extension of time to file your federal tax return does not give you an extension of the time to pay any taxes due. See us.

6. Are you a member of a nonprofit? It must file an annual information report with the IRS by May 15 if it has a calendar year-end.

7. Nonprofits with annual gross receipts of less than $50,000 can file a 990-N, also known as an e-Postcard.

8. If you had a large refund or owed a large balance on your income tax return, consider filing a new W-4 with your employer.

9. A large tax refund means that you have given the government the interest-free use of your money. You could have invested that money.

10. If you can't file your tax return by April 15, file for an "automatic" six month extension by April 15. You don't need to give a reason.

11. When filing for an extension to file your income tax return, estimate your total tax liability and pay any balance due with the extension.

12. Even if you can't pay the tax due on your income tax by April 15, be sure to file the tax return or request an extension of time to file.

13. The deadline for filing federal gift tax returns is the same as the one for income tax returns - April 15.

14. If you have foreign investments, you may have to file Form 8938 as part of your individual tax return this year.

15. Before choosing direct deposit for your tax refund, verify that your bank accepts such deposits, and verify account and routing numbers.

Please give us a call to discuss this or any of our other topics with you, so we can address your specific requirements.

DiSabatino CPA
Michael DiSabatino
651 Via Alondra Suite 715
Camarillo, CA 93012
Phone: 805-389-7300
ww.sharpcpa.com

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