Tips for the Month - May
The IRS matches all W-2 income as well as all Forms 1099 reported on your tax return and will contact you about unmatched amounts.
Nonprofits with annual gross receipts of no more than $50,000 can file a 990-N, called an e-Postcard.
Review your 2014 tax liability to decide whether it's time to file a new Form W-4 with your employer.
Large refund or large balance due with your 2014 tax filing? It may be time to adjust your tax withholding.
Tax-exempt status is automatically revoked if a nonprofit organization fails to file an annual report for three consecutive years.
May 15 is the deadline for calendar year-end nonprofit organizations to file 2014 information reports.
Always contribute the maximum amount to your retirement account that your employer is willing to match. It is FREE money.
April 24 is Tax Freedom Day, the last day all your 2015 earnings go to pay your total tax bill for 2015.
Of the $3.5 trillion spent by the federal government in 2014, 86% came from tax revenue; the rest was borrowed.
Federal tax revenue in 2014 came 46% from income taxes and 34% from payroll taxes.
59% of American households pay federal income tax; 41% do not.
The 16th Amendment established the income tax in 1913.
Over 40 million taxpayers have IRAs. If you qualify, make sure to contribute the maximum, especially if your employer matches funds.
If you contribute to a retirement plan, you may qualify for a Saver's Credit of up to $2,000 if married or $1,000 if single.
Go to http://apps.irs.gov/app/eos/ for a list of organizations eligible to receive tax deductible contributions.
You cannot claim a charitable deduction in addition to using the standard deduction on your income tax return.
Under the Bank Secrecy Act, banks and other financial companies must report cash deposits greater than $10,000 to the government.
You must have income from wages, self-employment income, tips, commissions, or alimony to qualify to make IRA contributions.
You need to be under age 70½ at the end of the tax year to contribute to a traditional IRA; not so for Roth IRAs.
New tax benefits are available to some disabled people under the "Achieving a Better Life Experience Act" (ABLE).
Please give us a call to discuss this or any of our other topics with you, so we can address your specific requirements.
DiSabatino CPA
Michael DiSabatino
651 Via Alondra Suite 715
Camarillo, CA 93012
Phone: 805-389-7300
ww.sharpcpa.com
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