Tax Day Is Over - Time To Celebrate...
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...And Start Planning for 2015! As April 15 comes and goes, taxpayers let out a sigh of relief, and take a vacation from the tax stresses until next year. But just because Tax Day is over doesn’t mean you should abandon all thoughts of taxes. On the contrary, now is the time to be proactive and set yourself up for a much less stressful tax season next year. Here are some quick tips for everyone, and you will thank yourself April 15, 2015. 1. Stay organized. Now that you have all of your paperwork together, keep going. Keeping track of business expenses, retirement contributions, deductible expenses, and charitable donations as they occur is much easier with a clean slate. Start a filing system now and stick to it throughout the year to make life less chaotic next spring. 2. Assess your withholding levels. Did you get a big tax refund in 2014? You’re likely having too much withheld — essentially lending the government interest-free money throughout the year. If so, fill out a new W4 and increase the number of exemptions you claim. Did you owe the IRS extra above and beyond what was withheld from your paycheck? Decrease the number of exemptions you claim so the same scenario won’t repeat itself next year. 3. Get your health insurance house in order. The uncertainty surrounding the Affordable Care Act continues — especially now that everyone is anxiously waiting to see how it will actually perform. In February, the employer mandate was delayed again until 2016 for medium-sized businesses (50 to 99 workers). And companies with more than 100 employees are required to offer only 70% of their full-time workers coverage in 2015 instead of 95%. But the individual penalty for non-coverage — 1% of yearly household income or $95 per person — is definitely in effect in 2014. Don’t wait any longer to develop a plan of action to secure health insurance for yourself and your employees. 4. Consider making home or business improvements. Whether it's energy upgrades or technology investments, many improvements completed this year can yield lucrative tax breaks. (We all have our fingers crossed that the Senate will raise the maximum amount of depreciation allowed under IRS Code Section 179 from $25,000 back to $500,000, where it was from 2010-2013.) Beyond the tax benefit, investing in your home or business is a smart way to spend money. 5. Work with your financial advisor to make investments more tax-efficient. Paying close attention to the types of investments in tax-deferred or tax-heavy accounts can mean the difference between owing thousands of dollars and getting a hefty refund next Tax Day. Talk to your financial advisor soon (after they go on vacation, of course) to get a money-saving plan in place now. Source: Nick McGregor, CMIT Solutions
Posted under: Tax Law

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