End of January Tax Tips...

You need not make the January 15 quarterly estimate for 2014 if you file your 2014 tax return and pay taxes due by February 2, 2015.

February 2 is the deadline for employers to provide 2014 W-2s to employees.

Payers must furnish payees with Form 1099s by February 2. The deadline for providing Form 1099-B is February 17.

February 2 is the deadline for employers to file annual federal unemployment tax returns.

Congress passed a tax extenders bill with provisions retroactive to January 1, 2014.

$500,000 Section 179 deduction for business assets is back for 2014.

The optional deduction for state and local sales tax vs state and local income tax is back for 2014.

The 50% bonus depreciation for new business assets is back for 2014. This provides an $8,000 increase in business vehicle depreciation.

A 2014 college tuition and fees deduction is allowed above-the-line for up to $4,000.

Up to $2,000,000 of debt relief on a home mortgage in 2014 can be excluded from taxation.

Employees may receive up to $250 per month for mass transit passes tax-free for 2014.

The 10% credit for certain home energy improvements is back for 2014. The lifetime limit is $500.

Teachers can take up to a $250 above-the-line deduction for classroom supplies they purchased in 2014.

Starting January 1, 2015, 529 college savings plans can change investments twice a year vs the former limit of once a year.

There is a new tax-savings plan for disabled people available starting January 1, 2015. Qualified expenses are tax-free from the ABLE plan.

Your marital status as of the last day of the tax year determines your filing status for the full year.

If your spouse dies during the year, you are considered married for the full tax year for tax filing status.

Even if you are not required to file an income tax return, you need to do so if you want to claim a refund.

It is not too early for a new year's resolution. If you are not saving at least 10% of what you make, now is the time to start.

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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