The 2014 tax season is expected to be one of the most challenging in recent history due to the new Affordable Care Act. The Affordable Care Act (ACA) required almost all U.S. citizens to have basic health insurance coverage (also known as minimum essential coverage) for all of 2014. There are many tax implications that […]
Don’t Worry, Tax Season Will Begin on Time
Earlier this week, the IRS announced that the 2015 tax filing season will open as scheduled on January 20, 2015. The IRS will start accepting efiled tax returns at that time. This comes after Congress renewed a number of extender provisions and the President signed them into law on December 19, 2014. For more information, […]
Required Minimum Distributions
As the year draws to a close, we would like to remind retirees to make Required Minimum Distributions (RMDs) from retirement plans. RMDs must be made before December 31st. RMD rules apply to all employer sponsored retirement plans, including profit sharing plans, 401(k) plans, 403(b) plans, 457(b) plans, Roth 401(k)s, traditional IRAs, and IRA based […]
Taxable Pension Benefits in Michigan
Leading up to the election, there was much talk about tax on pension income in Michigan. You may be wondering what the politicians were talking about. On January 1, 2012, the Michigan law changed so that pension and retirement distributions (payments from an IRA, 401(k), 403(b), 457, pension plan, etc.) are taxed differently depending on […]
Year End Tax Planning: Investments
As we approach the end of the year, we encourage you to begin thinking about tax planning for your investments. Here are a few topics to consider: Tax Rates for Investment Income: Capital gains on property held one year or less are taxed at an individual’s ordinary income tax rate. Capital gains on property held […]
Vehicle Donations to Charitable Organizations
Are you preparing to donate a vehicle to a charitable organization for a tax deduction? Here is some basic information on what you need to know: Select a charity that is a 501(c)(3) organization Determine the value of your vehicle The maximum amount you can deduct is the fair market value. A used car guide […]
SIMPLE IRA Plan Checklist
A SIMPLE IRA is a great way for small employers to contribute towards their employees’ and their own retirement savings. Many small employers choose to offer a SIMPLE IRA because it is easy to set up and operate. To help employers stay in compliance with SIMPLE IRA rules, the IRS recently released an updated SIMPLE […]
IRS Phone Scam Warning
The IRS has re-issued its warning regarding phone scams. The IRS is still receiving reports that taxpayers are receiving unsolicited calls from individuals claiming to be from the IRS. These calls typically involve a person threatening the taxpayer and demanding immediate payment. The IRS does not contact taxpayers via phone calls out of the blue. […]
The Importance of Cost Basis
It is important to obtain and retain cost basis for sales on investments and securities. The IRS has the right to and will tax the full sales amount if a basis is not provided. Typically, the cost basis will be noted on the 1099 you receive from your brokerage firm; however, if it is not […]
FAQs for Tax Season (Part 4 of 4)
Another common question asked during tax season is how do I know when to file quarterly individual estimated tax payments? For the Period: Date Payment is Due: 1/1 – 3/31 April 15 4/1 – 5/31 June 16 6/1 – 8/31 September 15 9/1 – 12/31 January 15 (of the next year) The date of postmark […]