5 Last Minute
Tax Tips for 2015 +
Still Time to
Make Your IRA Contribution
you one of the millions of Americans who hasn't filed (or even
started) your taxes yet?
With the April 15 tax filing deadline
less than a week away, here is some last minute tax
advice for you.
Resist the temptation to put off your taxes until the very
last minute. It takes time to prepare accurate returns and
additional information may be needed from you to complete your
Include All Income.
If you had a side job in addition to a regular job, you might
have received a Form 1099-MISC. Make sure you include that
income when you file your tax return because you may owe
additional taxes on it. If you forget to include it you may be
liable for penalties and interest on the unreported income.
File on Time or Request an Extension.
This year's tax deadline is April 15. If the clock runs out,
you can get an automatic six-month extension, bringing the
filing date to October 15, 2015. You should keep in mind,
however, that filing the extension itself does not give you
more time to pay any taxes due. You will still owe interest on
any amount not paid by the April deadline, plus a late-payment
penalty if you have not paid at least 90 percent of your total
tax by that date.
Call the office at 301-657-8080 if you need to file an
extension or file for late-filing penalty relief.
Panic If You Can't Pay.
If you can't immediately pay the taxes you owe, there are
several alternatives. You can apply for an IRS installment
agreement, suggesting your own monthly payment amount and due
date, and getting a reduced late payment penalty rate. You
also have various options for charging your balance on a
credit card. There is no IRS fee for credit card payments, but
processing companies generally charge a convenience fee.
Electronic filers with a balance due can file early and
authorize the government's financial agent to take the money
directly from their checking or savings account on the April
due date, with no fee.
Sign and Double Check Your Return.
The IRS will not process tax returns that aren't signed, so
make sure that you sign and date your return. You should also
double check your social security number, as well as any
electronic payment or direct deposit numbers, and finally,
make sure that your filing status is correct.
Remember: To avoid delays, get your tax documents to the
office as soon as you can.
Are you getting all of the tax credits and deductions that you
are entitled to? Maybe you are...but maybe you're not. Why
take a chance? Call the office today at 301-657-8080 and make
sure you get all of the tax breaks you deserve.
to Make Your IRA Contribution for the
2014 Tax Year
you contribute to an Individual Retirement Arrangement last
year? Are you thinking about contributing to your IRA now? If
so, you may have questions about IRAs and your taxes. Here are
some IRS tax tips about saving for retirement using an IRA.
Age rules. You must be under age 70½ at the end of the tax
year in order to contribute to a traditional IRA. There is no
age limit to contribute to a Roth IRA.
Compensation rules. You must have taxable compensation to
contribute to an IRA. This includes income from wages and
salaries and net self-employment income. It also includes
tips, commissions, bonuses and alimony. If you are married and
file a joint tax return, only one spouse needs to have
compensation in most cases.
When to contribute. You can contribute to an IRA at any time
during the year. To count for 2014, you must contribute by the
due date of your tax return. This does not include extensions.
That means most people must contribute by April 15, 2015. If
you contribute between Jan. 1 and April 15, make sure your
plan sponsor applies it to the year you choose (2014 or 2015).
limits. In general, the most you can contribute to your IRA
for 2014 is the smaller of either your taxable compensation
for the year or $5,500. If you were age 50 or older at the end
of 2014, the maximum you can contribute increases to $6,500.
If you contribute more than these limits, an additional tax
will apply. The added tax is 6 percent of the excess amount
that you contributed.
Taxability rules. You normally won't pay income tax on funds
in your traditional IRA until you start taking distributions
from it. Qualified distributions from a Roth IRA are tax-free.
Deductibility rules. You may be able to deduct some or all of
your contributions to your traditional IRA. Use the worksheets
in the Form 1040A or Form 1040 instructions to figure the
amount that you can deduct. You may claim the deduction on
either form. You may not deduct contributions to a Roth IRA.
Saver's Credit. If you contribute to an IRA you may also
qualify for the Saver's Credit. The credit can reduce your
taxes up to $2,000 if you file a joint return. Use Form 8880,
Credit for Qualified Retirement Savings Contributions, to
claim the credit. You can file Form 1040A or 1040 to claim the
If you found this Tax Tip helpful, please share or forward it
with your friends & family.
Financial Services at Sullivan & Company, CPAs
Sullivan leads our Financial Services Division and is here to
help you navigate your financial future. As an Investment
Advisor Representative, he is able to provide an
independent opinion on the investments you already own or
are considering buying.
We can structure a portfolio
based on your risk tolerance or we can help you decide how
to invest in your company 401(k) plan. We work with each
client to identify their concerns and to provide solutions
according to their situation.
is also experienced in company retirement plans. If you own
a business that does not have a plan; we can discuss your
options and set up a plan that fits your company.
If your business already has a
plan; we offer a free evaluation of the plan to ensure that
it is up to date and working well for you and your
Our goal is to provide personal, unbiased and independent
advice to help you make well-informed decisions about your
financial life and investments.
Contact Paul Sullivan or Jordana Para to set up a free initial
consultation (301) 657-8080.
And as always if you have any questions about accounting or
investments and how they effect you or your business, please give
us a call. We
can help guide you in the right direction.
Remember you can call our offices if you have any
questions about these or any other accounting, tax,
financial planning or insurance related issues, at
Regards, Paul Sullivan, CPA
President, Sullivan & Company