LOU ATHA INCORPORATED
IRS reads Taxpayer E-Mails Without a Warrant:
New documents from the Internal Revenue Service suggest the agency's criminal tax division has been reading taxpayers' emails without a warrant despite an appeals court decision saying that violates the Fourth Amendment.
Remember Education Tax Credits. Report tuition for any family member to take advantage of these tax savings.
The IRS has $153 million in undelivered refunds and recommends direct deposit to avoid future delivery problems.
2015 Retirement Plan Contribution Limits:
Phase-Out Ranges for IRA Deductibility (This is only for those who ARE covered by a company retirement plan):
2015 $98,000 - $118,000 (MFJ) $61,000 - $71,000 (Single/HH)
Note: If you are NOT covered by a company plan but your spouse is covered, the phase-out range for you in 2015 is $183,000 - $193,000.
If you file Married-Separate, your phase-out range is $0 - $10,000.
IRA & Roth IRA Contribution Limits:
2015 Maximum Contribution is $5,500 Catch-Up Contribution (for those who are 50 by year end) is $1,000. Total Contribution with Catch-Up is $6,500.
Note: A 2015 IRA or Roth IRA contribution can be made up to April 15, 2016.
Roth IRA Phase-Out Limits for Contributions:
2015 $183,000 - $193,000 (MFJ) $116,000 - $131,000 (Single/HH)
Note: If you file Married-Separate, your phase-out range is $0 - $10,000.
Employee Salary Deferral Limits for 401(k) & 403(b)s:
2015 Maximum Contribution is $18,000 Catch-Up Contribution (for those who are 50 by year end) is $6,000.
Total Contribution with Catch-Up is $24,000.
Note: Limits are per person, NOT per plan. Also, catch-up contributions are eligible for employer matching contributions.
SEP-IRA Contribution Limits:
2015 The SEP limit for 2015 is 25% of up to $265,000 of compensation, limited to
a maximum annual contribution of $53,000. This amount also applies to
Keoghs & profit-sharing plans.
Note: The catch-up contribution provisions do NOT apply to SEP-IRAs. They still apply to old SARSEPs in effect before 1997. No new SARSEPs were allowed after 1996. SEP contributions can be made up to the due date of the tax return INCLUDING extensions. For example, a 2015 SEP contribution can be made up to April 15, 2016 or up to October 17, 2016 if you have filed a valid extension to October 17, 2016.
Simple IRA Contribution limits for salary deferrals:
2015 Maximum Contribution is $12,500. Catch-Up Contribution (for those who are 50 by year end) is $3,000.
Total Contribution with Catch-Up is $15,500.
Re: California Use Tax
Tax professionals can take steps now to help their clients become CA use tax compliant by assisting them in reviewing their out-of-state purchases from catalogs, mail orders, and Internet purchases to determine if the retailer collected the tax.
COLA (cost of living adjustment) increases for 2014:
There is an increase in the 401(k)/403(b) contribution limit from $51,000 to $52,000.
COD!!! (Cancellation of Debt):
Remember - Cancellation of Debt is taxable. If you have anyone considering Bankruptcy, tell them to go get tax advice.
ACTION - IRA BENEFICIARY;
Name your Trust as the Beneficiary to protect the proceeds from Probate.
ALERT - ALERT:
Please discuss with Lou before any update or changes on your living trust or will.
NEW STANDARD MILEAGE RATES;
Auto mileage rate:
Moving Expense & Medical:
When both parents are working, can get credit for sending Kids to Day Camp!!
Keep your receipts with address and Federal Tax ID# of Camp.
It bears repeating each new filing season - make sure you report use tax on your California income tax return to avoid penalties and interest.
We advise that your tax return be kept forever. This copy of your return is often needed for legal and historic reasons. The back-up can be shredded after 7 years with the following EXCEPTIONS:
IMPORTANT NUMBERS for 2014;
YOU AND YOUR FAMILY:
The top rate for capital gains & dividends rises to 20% for those in the new 39.6% income tax bracket. This does not include the 3.8% surtax on net investment income for high incomers as defined by the Affordable Care Tax Act enacted previously.
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