Among the many provisions in the “Affordable Care Act” is a new information return that “health coverage providers” must file with the IRS. Form 1095-B lets the IRS match your health insurance coverage with the information you report on your personal tax return. Generally, a “health coverage provider” is an insurance company. To complete Form 1095-B correctly, your insurance company...
Penalty relief for failing to bring your existing employer health care payment plans into compliance with the “Affordable Care Act” expired on June 30. If you’re still directly reimbursing your employees for health insurance premiums on policies they purchase, you may have to pay a penalty of $100 a day per employee. These reimbursement arrangements are considered “group plans” and...
Tags: health care reimbursements
Category: Taxes
No matter what type of company you’re managing, following a few simple practices can be the key to effective cash management. * Reduce lag time. For example, give incentive discounts to customers who pay early. Aim for just-in-time inventory to reduce holding costs. * Establish a line of credit. To cover shortfalls resulting from excessive lag time, unforeseen business disruptions,...
Tags: cash Management
Category: Taxes
The income tax effects of mutual funds can be complex, and poorly timed purchases or sales can create unpleasant year-end surprises. Mutual fund investors (excluding qualifying retirement plans) are taxed based on activities within each fund. If a fund investment generates taxable income or the fund sells one of its investments, the income or gain must be passed through to...
Tags: mutual funds
Category: Taxes
According to research conducted this spring, U.S. workers expect to stay employed past age 65 and to transition into retirement by reducing hours on the job over time. Whatever your expectations for your post-work life, planning now can mean you’ll be prepared to manage your retirement years. Review your health and disability insurance needs, tune up your retirement plan savings...
Tags: Retirement age
Category: Taxes
If you are in a position to give, making annual gifts can be an excellent strategy for reducing both your estate and income tax liability. Doing your gift-giving well before year-end is especially smart if you are giving income-producing property. You will then remove more income from your 2015 tax return. The annual tax-free limit for 2015 gifts is $14,000...
Couples often enter into marriage without ever having had a serious discussion about financial issues. As a result, they find themselves frequently arguing about money. If you are planning a wedding, here are some steps you can take to get your marriage off to a good financial start. * Premarital financial discussions. You and your intended might enjoy the same...
Tags: premarital finances
Category: Taxes
Is your file cabinet overflowing? Do you hesitate to purge tax information because you’re not sure what to keep and what to discard? Here’s a quick guide to help you cut through the clutter. * Expenses. Substantiation for deductions includes charitable donation acknowledgments, receipts for employee business expenses, and automobile mileage logs. Retain these at least seven years after you...
Tags: recordkeeping
Category: Taxes