One of the more confusing provisions of the current tax law pertains to what is called the Net Investment Income Tax (NIIT). This 3.8% tax applies to the lesser of either your net investment income or the amount by which your modified adjusted gross income (MAGI) exceeds a threshold amount. For example, the threshold for Married filing jointly is $250,000. This tax, which was instituted in December 31, 2012, generally does not include income and gain derived from the ordinary course of business, unless the trade or business is a passive activity. As a result, taxpayers are allowed a one-time election to regroup activities under Code Sec. 469. If you feel this tax may affect you and would like to discuss your options in light of the Net Investment Income Tax, please contact us today.
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The IRS provides a tool in order to check your refund. Most refunds are issued in less than 21 days. For more information view the Where’s My Refund? tool.
By now you most likely have received your W-2 from your employer. In the event this has not happened contact your employer for a copy or, after February 23, contact the IRS at 800-829-1040 to report a missing W-2. The IRS will then follow up with your employer for you.
According to the IRS, fraudulent charities are at an all time high as taxpayers look for additional deductions on tax returns. Before you write any check to a charity, use the IRS Exempt Organization Checker by clicking here. Many times the charity will masquerade as a larger, well-known national charity. These types of scams peak during filing season. If you have any questions regarding charities of which you donate, please contact us. We look forward to speak with you.
The IRS has issued Publication 5187 which provides information regarding the Affordable Care Act and its tax effect for 2014.
The Tax Increase Prevention Act of 2014 was signed by President Obama on December 19th, 2014 which extended a number of individual, business, and energy credits. The Act also provided for the establishment of tax-favored accounts that can be used to save for disability related expenses otherwise known as Achieving a Better Life Experience accounts or ABLE accounts.
This IRS will be enforcing for the first time in 2014 its individual mandate under the Affordable Care Act which sets forth requirements for taxpayers to hold qualifying health insurance. Please call our offices to discuss today!
When making year end gifts to charities, keep the following in mind:
1. A clothing or household item must be in good used condition or better to qualify OR have a qualified appraisal of over $500. 2. A taxpayer must have a bank record or written statement from a charity in order to deduct a donation regardless of amount. 3. Contributions are deductible for the year made. For more information, consult the following IRS publication. Starting January 1, 2015, the IRS will be implementing a one-IRA-rollover-per-year-rule. Certain exceptions may apply for individuals who rolled over distributions in 2014. For more information please click here and give us a call.
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April 2020
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