December Tips....

The Social Security Administration announced that the maximum earnings subject to social security tax in 2015 will be $118,500.

The "nanny tax" limit for 2015 remains at the 2014 limit of $1,900.

Next year taxpayers may contribute up to $18,000 to their 401(k) plans; those 50 and older may contribute an additional $6,000.

The contribution limit for IRAs remains at $5,500 for 2015, with the 50 and older catch-up contribution remaining at $1,000.

If you pay more than half of your employees' health insurance, don't miss out on the tax credit available to small companies.

If you qualify, there are several exceptions that keep you from paying a penalty for not having health insurance in 2014.

If your small business owes no income tax for 2014, you can carry your health insurance tax credit back or forward to other years.
    
If you owe income taxes but can't pay them, file your tax return on time to avoid the penalty for not filing.

If you have 50 or more full-time employees, you will be considered a large employer subject to the Affordable Care Act.

We are approaching the "giving" season. Unless you know for sure who you are giving to, check them out. This is also "scam" season.

If you qualify to take a tax deduction for a home office, be sure to keep good, detailed records of all expenses.

Alimony and property settlement dollars get different tax treatment for both the one paying and the one receiving the money.

If you are newly self-employed, be aware of the requirement to pay quarterly income and self-employment tax estimates.

There are two kinds of bad debts: business bad debt and nonbusiness bad debt. Each gets a different income tax treatment.

A business bad debt is one created as a result of conducting your trade or business. The loss is taken on your business tax return.

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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