TAX TIPS -Volume 1
Do you participate in a 401(k) or other type of retirement plan?
The annual 401(k) contribution limit for 2015 was increased to $18,000. Those 50 years and over can contribute an additional $6,000. IRA contribution limits will remain at $5,500, with those 50 and over being able to contribute an additional $1,000.
What about your charitable donations?
Tis the season for giving! Make sure to keep a record of all qualified charitable giving and ask for a receipt if possible. Keep in mind that only individuals that itemize may be eligible to claim a deduction for charitable contributions.
Did you purchase health insurance though the Marketplace as part of the Affordable Care Act?
If so, in early 2015 you will receive, via mail, Form 1095-A (Health Insurance Marketplace Statement). This is a new form which you may not have been anticipating. However, it will be needed in order to complete your 2014 tax return.
What if you are self-employed?
For self-employed individuals, keep in mind that fourth quarter tax estimates are due on January 15th. This will also apply to anyone that saw an increase in income during 4th quarter, to which a W-2 withholding may not cover.