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Plan Your 2014 Retirement Contributions
With the setting of contribution limits to qualified retirement plans for 2014, now is a good time to plan for your 2014 retirement contributions. As part of your planning for next year, now is the time to review funding your retirement accounts. By establishing your contribution amounts at the beginning of each year, the financial impact of saving for your future should be more manageable. Here are annual contribution limits for the more popular programs: Retirement Program 2014 2013 Change Age 50 or over to catch up IRA: Traditional $5,500 $5,500 none add: $1,000 IRA: Roth $5,500 $5,500 none add:
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Understanding Tax Terms: Wash Sales – Surprise! Your stock loss is not deductible.
Understanding Tax Terms If selling a stock or mutual fund to book a loss for your tax return, the Wash Sale rules are worth knowing. For the unaware, this rule could cost you your loss deduction. As you look for year-end tax moves to save on your bill from Uncle Sam, you may consider selling stocks that have lost value. This can be a great strategy when up to $3,000 in stock losses can offset your ordinary income. However, there is a little known rule called the Wash Sale rule that could surprise the unwary taxpayer. Wash Sales If the
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2014 Mileage Rates
2014 Mileage Rates After a long delay, the IRS finally announces the standard mileage rates for travel during 2014. The IRS recently announced mileage rates to be used for travel in 2014. The Business, Medical, and Moving mileage rates decrease one half cent versus 2013 while charitable rates remain unchanged. Business mileage decreases 1/2 cent per mile. 2014 New Mileage Rates Standard Mileage Rates Mileage 2014 Rate/Mile Business Travel 56.0¢ Medical/Moving 23.5¢ Charitable Work 14.0¢ Here are 2013 rates for your reference as well. 2013 Mileage Rates Standard Mileage Rates Mileage Rate/Mile Business Travel 56.5¢ Medical/Moving 24.0¢ Charitable Work 14.0¢
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Consider Donating Appreciated Stock & Mutual Funds
Consider Donating Appreciated Stock & Mutual Funds In some rare cases, making a tax savings move can benefit you in more than one way. This is the case with direct contribution of qualified investments, such as stock, owned more than one year that have appreciated in value. One way to reduce your tax bill this year is to donate appreciated stock to a charity of your choice versus writing a check. This part of the tax code provides a tax benefit to you in two ways: Higher deduction. Your charitable gift deduction is the higher Fair Market Value of the
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Research Your Preferred Charities
Often during an audit, what you thought was a qualified deduction to a charitable organization is ruled non-deductable. How can this happen? Here are some hints to make sure your charitable contributions are put to good use, both at the charity and on your tax return. November and December seem to be the months we are rained upon with charitable organization solicitations. Some of the groups, such as the American Red Cross, the Salvation Army, United Way, and the American Cancer Society are household names. Others are less known. Here are some tips on how to research these organizations prior
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Understanding Tax Terms: the kiddie tax – What you know can help you
In 1986, a tax law was introduced to block parents from transferring investments to their children as a technique to lower their taxes. This law, commonly known as the kiddie tax, ensures that this unearned income is taxed at a parent’s, usually higher, tax rate. But there is still a tax planning opportunity. The term “kiddie tax” was introduced by the Tax Reform Act of 1986. The IRS introduced this rule to keep parents from shifting their investment income to their children and have this income taxed at their child’s lower tax rate. The law requires a child’s unearned income
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2014 Social Security Benefits Announced
Social Security recently announced planned benefit increases for 2014. Now is the time to plan for these changes. The Social Security Administration recently announced monthly social security and supplemental security income benefits (SSI) will increase in 2014 by 1.5%. This increase is based upon the Consumer Price Index over the past 12 months ending in September 2013. In addition, other figures based on the national average wage index will also be changed. A recap of the key amounts is outlined here: 2014 Key Social Security Benefits What does it mean for you? Up to $117,000 in wages will be subject
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Use it or Lose it! – Health Flex Spending Arrangement Rules Changing
Worried about losing your unspent FSA health funds prior to the end of the year? A new IRS notice in late October, 2013 provides hope of a new $500 carryover law. Here is what you need to know. Do you have funds in an employer provided Health Flexible Spending Arrangement (FSA)? If you worry about the long-standing rule of using up those funds or you’ll lose them, then a new notice from the IRS could be helpful for you this year. Background Millions of Americans take advantage of their employer’s cafeteria plan that allows setting aside pre-tax dollars to be
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