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| The contribution limit to your traditional IRA for 2014 if you were age 50 or older before 2015 is $6,500 or your taxable compensation for the year, whichever is smaller. |
| If contributions on your behalf are made only to Roth IRAs, your contribution limit for 2014 will generally be the smaller of $5,500 or your taxable compensation for the year. |
| If you're married filing separate, you lived with your spouse at any time during the year, you cannot make a Roth IRA contribution if your modified AGI is $10,000 or more. |
| Beginning in 2013, you can deduct only the part of your medical and dental expenses that exceed 10% of your adjusted gross income. It has always been 7.5% but now due to the new Affordable Care Act rules, this benefit has diminished to encourage taxpayers to take advantage of the new health care reform laws. |
| With the start of hurricane season, the Internal Revenue Service encourages individuals and businesses to safeguard their records against natural disasters by taking a few simple steps. The Internal Revenue Service advices to create a backup set of records electronically, store them in a safe place that is stored away from the original set. |
| Keeping a backup of records - including bank statements, tax returns, insurance policies, etc. - is easier now that many financial institutions provide statements and documents electronically. With documents in electronic form, taxpayers can save them to the cloud, download them to a backup device such as an external hard drive or USB flash drive. Furthermore, when keeping electronic records, taxpayers can burn a copy of them to a CD or DVD. |
| On June 2, 2014, the Internal Revenue Service announced that interest rates will remain the same for the calendar quarter beginning July 1, 2014. The rates will be 3% for overpayment or 2% if you are a corporation. The rates will be 2% for underpayments or if you are large corporation this rate will be 5%. Any payment portion that exceeds $10,000, the portion of corporate overpayments will be 0.5%. |
| The statistics of Income (SOI) Division produces the SOI Bulletin on a quarterly basis. Articles included in the publication provide the most recent data available from various tax and information returns filed by U.S. taxpayers. The spring issue of the SOI Bulletin also includes articles on individual income tax rates and shares in 2011, noncash contributions in 2011 and individual foreign earned income and the Foreign tax credit in 2011. |
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| Copyright © 2015 [Hera's Income Tax School]. All Annual Federal Tax Refresher Course rights reserved. |
| Revised: 05/31/15 |
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