Well folks, it's that time of year again.
The IRS has decreed that tax season begins January 20, 2015! Time to get your W-2's, mortgage statements, and every other financial document in order. I am sure a lot of you are curious what changes the government has made for the 2014 tax season and how will these changes affect you as taxpayers. Here is my list below;
- Mortgage Debt Forgiveness-2007-Extended
- Mortgage Premiums-Extended-PMI-2007
- Educator Expenses-Extended
- State Taxes, Local Taxes Deduction-Extended
- Tuition and Fees deductions-Above the line deduction
- Section 179-Extended
- Standard Deduction-Increased
- American Care Act-In effect
Taxes are complicated, lets keep this simple, what are you really worried about? Healthcare! The most important information you will need to have in hand is one thing; How many months were you insured for health coverage? This coverage can come from your employer, the Health Insurance Exchange (State or Federal), or a Government program such as Medicaid. If you were covered for the whole year all you will need to do is check a box on your 2014 Income Tax Return annotating as such. What if you were not covered at all? Worst case scenario you could be subject to a penalty that equates to 1% of your Adjusted Gross Income. If you are expecting a refund, this penalty can be taken from that refund. If you are not expecting a refund, pay the penalty in full by April 15, 2015, or establish a payment plan with Uncle Sam (IRS). Lastly, do not be bothered by the doom and gloom that has been spread by the media pundits about this tax season. You will be able to file earlier than usual. You will have many options as to where you can file this year. The Internal Revenue Service has launched the "Free File program", this program allows taxpayers to prepare there own return free of charge with the assistance of a approved software provider designated by the IRS. You will also have DIY tax programs Turbo Tax, Tax Slayer, and many other software programs on the market. Not to mention the oldie but goody, mean green tax machine H&R Block, "Get your Billion Back America", if you know who I'm talking about. Or you could go the traditional route and choose an awesome tax pro such as myself. Have a wonderful year. In good form I conclude this message with a quote from the late and great Dr. Martin Luther King Jr.; “If you can't fly, then run, if you can't run, then walk, if you can't walk, then crawl. But whatever you do, you have to keep moving forward."