The IRS recently announced that the mileage rate for business driving in 2015 will be 57.5¢ a mile, a slight increase from the 2014 rate of 56¢ per mile. The rate can be used for cars, vans, pickups, and panel trucks. Companies that don’t want to keep track of the actual costs of using a vehicle for business purposes may...
Tags: 2015 business mileage
Category: Taxes
In its final session of the year, Congress extended a long list of tax breaks that had expired, retroactive to the beginning of 2014. But the reprieve is only temporary. The extensions granted in the “Tax Increase Prevention Act of 2014” remain in effect through December 31, 2014. For these tax breaks to survive beyond that point, they must be...
Tags: 2014 tax extenders
Category: Taxes
While you’re wrapping up 2014, give yourself the gift of reduced stress in the new year by getting a head start on January’s information reporting responsibilities. Here are some preliminary steps to take. * Review your general ledger. Even if you’ve already identified “1099 vendors” in your payables system, review current-year expenses to make sure no new or infrequent payments...
2014 is winding down, but you still have time to wrap up business tax strategies before December 31. Here are five to put on your list. * Make capital contributions if necessary. When you have losses in your Subchapter S corporation, the amount you can deduct on your personal tax return may be restricted. That’s because losses are limited to...
Tags: december business tax moves
Category: Taxes
Unfortunately, full retirement doesn’t end your income tax obligations. You’ll owe income taxes on withdrawals from a traditional IRA or 401(k) plan, and you’ll owe taxes on income outside your retirement plans (interest, dividends, capital gains, certain deferred income payments, etc.). Also, if your income exceeds a threshold amount, you could owe taxes on your social security benefits. So before...
Tags: retirement income
Category: Taxes
For any number of reasons, you could find yourself opening your home to relatives in need. In some cases, the guests could become fairly permanent occupants. Who can be claimed as a dependent at tax filing time? Suppose that your nephew and his six-year old daughter lived with you for nine months during the current year. Can you claim them...
Tags: dependents
Category: Taxes
If you moved in 2014 because of a new job location, you may be entitled to a tax deduction for your moving expenses. To qualify for a tax deduction, your new job location must be fifty miles further from your old home than the distance from your old home to your old job. In other words, if your commute would...
Tags: moving expenses
Category: Taxes
The IRS reminds taxpayers not to overlook their responsibilities under the “nanny tax.” If you employed a housekeeper, nanny, gardener, or other household worker in 2014, you may have payroll tax obligations, commonly called the nanny tax. These payroll taxes apply if you paid a household worker $1,900 or more in 2014. Federal unemployment taxes apply if you paid more...