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An Update on Changing of Tax Laws and Regulations

Over the years there have been a large number of changes in tax regulations. This has made life difficult for ordinary people to keep themselves updated without having to avail tax services in Orlando. For people that do avail tax services in Orlando, these changes are part of the routine, where they are updated of each change before having to file their taxes. To make life easier for people without tax services in Orlando, here is the low down on the major changes to tax laws over the last year or so.

A tax penalty has been introduced for those that don’t avail a health coverage plan

The Affordable Care Act has made it an obligation for every law abiding US citizen to buy themselves a health insurance plan. For those who refuse to do so, they will be charged for it with a penalty. According to tax services in Orlando, there are only a few exceptions to people who need not buy a health insurance plan. These people are usually those that have health policies cancelled or very low income to afford the plan.

FSA accounts can carry over a balance of less than $500

The rules with regards to FSA accounts have been modified and edited. In the previous law, the balance that was left at the end of every year in the account irrespective of how much it was would go to waste. However, this has now been changed. From this year on, all FSA accounts that have money less than $500 will be allowed to carry it forward into their accounts for the next year. According to tax services Orlando, this has been the result of a grace period given up to March 2015 that warranted people to use up all the balance their FSA’s had.

What is confusing and would probably need you to go to tax services in Orlando to understand, is that either the grace period or the carryover could have been used, but not both of them.

The introduction of a new tax credit for people that buy a policy for health coverage

To encourage the people to avail; the new health and coverage plans, the government in collaboration with states has introduced premiums and tax credits for assistance. This tax credit is available to you only in a situation where you have an income that is 100% to 400% above the poverty line and your employer is either unable to or you have none to provide you with a health coverage.  Tax services Orlando believes that each tax credit will differ party to party and most importantly income to income.

Invalid Policies

With the introduction of new policies, last year also marked the elimination of some policies from the rules and regulations. Here is a brief review of some of them.

  • You now have no right to deduct either local or state level sales tax.
  • Educational and Tuition fees are not a deduction.
  • Commuting expenses can be deducted from your taxable salary, bringing it lower for taxation.

While these policies and regulations have been changed in the last year or so, before acting on either make sure you get accurate details from tax services Orlando.

If you need more information about our Orlando accounting and tax services, please contact us at 407-344-1012.  Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years.  Our Orlando accounting and tax firm has its main offices in Kissimmee, FL.  Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL.  Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt.

Robert AcevedoAn Update on Changing of Tax Laws and Regulations