Are you prepared for Tax Season 2015?
Perhaps you've been paying attention to the buzz that there will be a more difficult and
stressful tax year this upcoming Tax
Season due to Congress' delay in decision making. A lot of individuals
and businesses alike are waiting to hear what Congress decides on our tax laws
so that we can move forward next year.
Currently we
are awaiting Congress’s decision on tax extenders. These tax extenders are
the tax credits and deductions such as mortgage debt forgiveness, higher education expenses deduction, state and local sales tax deductions, charity credits and extensions, and business credits and extensions. These extenders expired since December 31, 2013.
According to an article in the USA Today, “if these five dozen or so expired
credits and deductions aren't renewed, it will have a huge impact on people and
businesses”. This article explains more in detail about the various extenders
that are at risk, and what each of these credits
and deductions do and who are negatively affected if they aren't renewed. To
learn more about the tax extenders, read here.
Due to the
uncertainty in decision making of Congress, the American people again must
witness a stressful and difficult tax year for Tax Season 2015. Not having a
decision on our tax policy could cause issues including changes in our credits
and deductions, a delayed start of tax season again, and possibly a delay in tax refunds for next year.
Although the delay in policy making is making year-end
tax planning a more stressful task, there are still some basic steps we can
take in planning for our upcoming Tax Season and our taxes for the year 2015.
1) Healthcare- Due to the Affordable Care
Act, those of you who do not have health insurance or are planning to be exempt
from the health care plan must start making arrangements Now! The wait for
exemptions to be approved and to have your healthcare ready could take from now
to the end of January. It’s best to be prepared so that once you receive your W-2s, you can start filing as soon as possible.
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2) Charitable Donations- Continue to
make your charitable donations and be sure to keep all receipts with your
donations.
3) Investments- Now is a great time to
look over investment portfolios, to offset taxable gains with losses.
4) Income vs Withholding- Now is a great
time to ensure you are on track with paying your taxes throughout the year. You
definitely do not want to be surprised by owing a huge amount of money to the
IRS come Tax time.
However, you may also want to ensure that you are not overpaying the government
as well. A lot of people get excited about receiving a huge tax refund, but
that may indicate that you are overpaying the IRS. After all, taxes are only an
interest free loan to the government.
In order to ensure you are having the right
tax withholding from your paychecks, use the IRS Withholding Calculator and adjust
your W-4s with your employer accordingly. Also, email Imperium Tax Today at Imperiumtaxcorp@Gmail.com for assistance on how to receive a Raise in your Paychecks without going to your boss!
5) Self-Employed Business Liability- For
self-employed business owners, now is the time to review your estimated tax
payments to ensure you are accurate for your 2014 tax liability. It may be
beneficial to pre-pay any estimated tax liability in December, rather than wait
until April. This could put you in a positive position come Tax Time.
Although the tax extenders are at a halt, a basic year end
plan for your tax year can make your tax season a lot less stressful. Call Imperium Tax today for
assistance with adjusting your W-4s and to learn more about the new IRS required regulations for proper record keeping
for business owners claiming deductions and credits during Tax Season 2015! Email us at Imperiumtaxcorp@Gmail.com for all of your pre-tax season questions and concerns!
Imperium Tax
404.820.6383
Photo taken by Jada Lopez 2014
