It’s that time of year… tax time! Many of you are receiving 1099s, corrected 1099s and other tax forms in the mail. Please call us if you need clarification on your investment income and expenses. We are happy to work with you and directly with your tax preparing CPA! We recommend working with a trusted and qualified CPA professional to help you prepare your tax returns. We’ve asked one of our trusted CPAs, Scott Wrigley, to briefly summarize a few tax news items relevant to you. Please see his comments below.
Contributed by Scott T. Wrigley, CPA, Partner at Halverson & Company
Much of the news to the 2014 tax filing season is related to the tax extender package passed just before year-end. President Obama signed into law the Tax Increase Prevention Act of 2014 on December 19, 2014. Businesses and individuals are celebrating the one-year extension of many key tax savings items. A few of the more than 50+ extension items for businesses and individuals are as follows:
- State and Local Sales Tax Deduction
- Higher Education Deduction
- Teachers’ Classroom Expense Deduction
- Mortgage Debt Exclusion
- Mortgage Insurance Premium Deduction
- Charitable Distributions from IRAs
- Bonus Depreciation
- Code Section 179 Expensing
- Qualified Leasehold/Retail Improvements, Restaurant Property
- Research Tax Credit
For more information, Scott Wrigley can be contacted at (480) 386-9710 or firstname.lastname@example.org.
There’s Still Time for IRA Contributions!
Contributed by Jaron D. Carmichael, CPA, PFS, CFP®
You can still make a 2014 contribution to your IRA, ROTH IRA, or both up until the April 15th tax filing deadline. You and your spouse may contribute a total of $5,500 each or $6,500 each if over age 50 and include it in your 2014 tax year.
Your ability to deduct the contribution on your return depends on your filing status and income. See the chart below.
ROTH IRA contributions are made after-tax and are not deductible on your tax return. But earnings and qualifying distributions are tax-free. If married filing jointly with MAGI under $181,000 you can contribute the full amount of $5,500 or $6,500 (age 50+) each. The amount you are eligible to contribute phases out based on your filing status and income as follows:
Reduced at: Ineligible at:
Married Filing Jointly $181,000 $191,000
Married Filing Separately $0 $10,000
Single or Head of Household $114,000 $129,000
If you are self-employed, you may be able to make SEP IRA contributions up until your tax filing deadline (including extensions). SEP IRA contributions limits for 2014 are the lesser of:
- 25% of compensation, or
Please work with your CPA to determine the amount you can contribute to a SEP IRA. Rowland Carmichael would be happy to advise you on the account and how to invest it to best fit your needs.