Have you started preparing for taxes this year by a tax service in Kissimmee? Once you file your 2013 returns, start worrying about 2014 taxes because a lot of things are no more the same. Since tax laws have changed this year, you need to keep some things in mind when doing your 2014 taxes. You chosen tax services Kissimmee can guide you more about these, but for right now, we will just skim over what’s involved.
Kissimmee Tax Service Tip 1: Keep yourself up-to-date about tax laws
There were over 50 provisions that expired on the 31st of December, 2013. As far as your return is concerned, you have nothing to worry about, but bring your 2014 tax planning in the picture and you will find a lot of changes. There is a good chance you may no longer be allowed to avail a certain tax breaks and deductions such as sales taxes, educational expenses and the like. If the laws undergo another change, this will not be so, but for right now, planning for taxes this year is going to be more difficult than in the past. Ask your chosen tax services Kissimmee for more information about this and act on what they advise you for lower tax bills net year.
Kissimmee Tax Service Tip 2: Above average income? Get ready to pay more
Evaluate your taxable income by subtracting your deductions. If this amount is greater than $400,000 for single filers or $450,000 for double filers, you will have to pay additional taxes. The most feared of these is the Medicare Surtax.
So as you get down to plan this year, not only the amounts in your accounts will be affected but even your physical health may suffer if your income levels are high. With the new laws, the headaches and the stress levels are also bound to be higher.
Kissimmee Tax Service Tip 3: Medical insurance is a good choice, not just for taxes, but for your pocket as well
Have you already gotten health insurance? If yes, you have nothing to worry about. If no, you have until the 31st of March to buy a plan. Fail to do this, and you will be faced with a penalty. This is 1% of your annual income or $95, whichever of these amounts will be greater. So how do you pay this penalty? Yes through taxes.
When you file your 2014 return next year, you will have to pay the penalty then. However, if you are expecting a refund this year, you will definitely not get the full amount, because IRS will deduct the penalty from it. And if the refund is not big enough; pay the tax bill or lose your future refunds as well.
Kissimmee Tax Service Tip 4: Business owners may get an extra edge
There are so many people that have now started their own businesses because there just are not enough jobs. One of these? Set up an office in your home, and you can utilize it as deduction. The deduction amount is $5 per an area of a square foot with the maximum amount being $1,500.
Getting Your Tax Refund Deposited in Multiple Accounts
Do you get impressive returns from the IRS every year? Though that is good, the question is what do you do with them? Save them or spend them instantly? Actually, the IRS advises you to do the former option and so will all reputed tax services Kissimmee.
The IRS provides you with four different account options for your refund so that you do not spend it instantly. You can even buy bonds from your refund amount. If you want your refund deposited into a single account, it is not much of an issue, and the IRs will not require anything from your end. For getting the amount deposited in multiple accounts, you will have to send additional forms and documents to the IRS. Here is what you need to know in this regard.
Tick mark the multiple account deposit option
IRS has very clear instructions regarding deposits. Go through the 8888 form and you will come across a diagram of a blank check that will provide you with details on the information that has to be entered. Your chosen tax services Kissimmee can also guide you about this.
While doing so, make sure you have checked off the splitting refund option your 1040 form, which is located above the option of a single account deposit. The IRS will then refer to the 8888 form for details.
Choose an appropriate number of accounts
The IRS will deposit your refund money in up to three accounts. If you want to opt for two or three accounts, you will have to provide details on all of them on the 8888 form. For those who do not want their refunds deposited in multiple accounts, you will just have to provide this information in the relevant section on the 1040 form.
If you are a married couple filing jointly, the IRS can deposit the refund into either of your accounts, but you will have to make sure your bank has no issues with this. Certain banks follow policies that prevent a joint refund from being deposited into an individual account.
Fill out the bind related section on the 8888 form
If you want to use your refund money to buy bonds, you will have to fill out the second section of the 8888 form. The interest rates for these are adjusted twice a year; the 1st of May and the 1st of November.
You can buy bonds worth $50,000, but your chosen amount should be a multiple of $50. As an example, if your refund amount is $570, you can use $550 for buying bonds. The remaining $20 will have to be deposited in any one of your accounts.
Decide the amounts you want in each account
The IRS has no policies that require you to deposit equal amounts in all your accounts. You can choose how you want the amount divided and into which account should it be deposited. The accounts can be a savings account, a retirement account or a market account.
If you need more information about our Kissimmee 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, and Hunters Creek, 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 numbers, incorporations, and non profit 501c3 tax exempt status applications. (Freedomtax’s accounting and tax professionals are not CPA’s. CPA services provided by third party provider)