In recent times, the IRS has changed many a tax policies and many times such that it became hard for people to keep updated. If you avail tax services Orlando, this will not be an issue and you will be kept notified of all changes. Just for a reference, here is quick review of the most major ones. Please consult tax services Orlando for details.
You will be charged a penalty if you do not comply by the new health reform
According to the Affordable Care Act, if there is any individual who does not buy a health insurance plan will have to pay a penalty. This is true for everyone who does not have the minimum required coverage except for a few people. These include individuals whose income levels are very low or whose health policies were cancelled.
There is a new tax credit for those who buy a health coverage policy
A premiums assistance tax credit is offered to tax payers who buy a suitable health insurance plan through a state exchange or any other exchange that is under a partnership of the federal and the state government. This is actually the health insurance subsidiary which you must have already heard about.
As per the polices you are eligible for this if your income lies in the range of 100% to 400% of the poverty line and there is no employer to provide you coverage. The exact amount of the credit will vary depending on individual circumstances.
You can carry over a balance worth $500 in your FSAs
Previously, the balance in a Flexible Spending Account expired by the end of every year. This is not so any more and any amounts worth $500 or less will be carried forward to this year as well. This deal is actually in lieu of a grace period that was offered till March 15 in which individuals had to consume the balance of their FSAs.
Basically, you can either the $50 carry-over deal or the grace period, but you cannot make use of both. A reputed tax services Orlando can guide you about this.
The polices that are no more effective
Last year did not only announce new polices but some of the previous tax breaks expired as well. Ask your tax services Orlando for more information because what is given below is just a quick review.
- You no more have the option to deduct state or local sales taxes. You can still do this for income taxes, but not for sales taxes.
- You can no more utilize educational fees and tuition expenses as a deduction. Previously, you could use a minimum value of $4,000 if your income level was low, or $2,000 if your income level was high.
- You employer can permit you to bring your taxable salary lower by deducting commuting expenses. Last year, the limit for this was $245, but now it is only $130.
Tax Moves for the Start of 2014
2014 is witnessing many new changes being made to taxes. There is so much to do, get information, prepare forms, gather documents; you really would not want to miss out any of this. So how do you assume you can get things done as smoothly as possible? Hire a reputed tax services Orlando and most of your problems will be solved. Other than this, prepare a checklist and cross off a task once you get it done. Come 2015, and it will be so easy for you to pay your taxes.
So what should your checklist contain? Let us take a look at the most important elements.
Set up the tax file
Grab a label maker and prepare labels that state 2014. Now stick these onto an expandable file so that you have plenty of space to store all your tax sales receipts and records. You can also use a scanner and create a soft copy of all documents. Save them and integrate them with a financial management application. Be sure to keep both the hard and the soft copies with you to be on a safe side.
Update your addresses
Did you make a move last year? Did not send everyone your new address? No problem, do it now and notify all people who will send you tax related documents about the change. For instance, your former employer may send you the W-2 for or your bank may provide you with a 1099-Int from. Brokerages, clients, investments and trusts also have associated forms which you may need.
Update your name
The newly married brides change their name and notify everyone else except for one important firm: the Social Security Administration. Your refund is bound to get delayed if the names are different on your social security card and tax returns form. Get this done and cross it off here.
Get an IRS pin
Last year saw plenty of tax thefts and this year, you can expect it to be the same, maybe in increased numbers. In case you were a victim among the so many unfortunate, let the IRS know and you will be issued an identity protection personal identification number of IP PIN. This will make your account flagged, and no return can be filed with your actual Social Security Number.
Try to get a medical reimbursement
If you do not have enough medical expenses and cannot get back all of your FSA deductions, you still have some time for this. Gather your receipts and you might get reimbursements. Should you opt for this, you cannot use them as itemized deductions.
Though the above checklist can be dealt with any time, it is always more beneficial to get it done at your earliest. If you have time, you to go through everything once again and ensure you have made no mistake. Once again, do hire reputed tax services Orlando because that will simplify your task considerably. Not only will you have to pay reduced taxes, you will also be given evaluable financial advice.
If you need more information about our Orlando accounting and tax services, please contact us at 407-502-2400. 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.