|Particularly challenging this year is the fact that over fifty individual and business tax breaks expired at the end of 2014 and have yet to be extended by Congress. There are also many new tax regulations for 2015, such as:
- "ABLE" account for disabled individuals
- Increased late-filing penalties
- New information reporting for inherited property
- Revised filing deadlines
- Relief for small businesses regarding capitalization regulations
- Expanded qualified residence interest deduction for unmarried co-owners
If you have made any major life changes this year, please contact us soon to review their effects upon your tax situation. Especially if your employment status has changed (income level, started new company or newly self-employed), your Tax Manager can help determine whether you should submit underpaid taxes before the end of the year.
Another savvy move is to pay your invoices, if you haven't already, for any billed tax prep fees before year end to claim the deduction on your next tax return - and we would appreciate it! (As long as you postmark your check or charge your credit card in 2015, it will still be deductible even if you don't pay it off until 2016.)
There are many other ways to lower your 2015 tax bill, such as deferring income, increasing donations and gifts, paying some expenses early, adding to retirement accounts, and reviewing health insurance and savings accounts. They are all worth checking out before the end of the year. And remember that effective tax planning involves looking at this year and next year at least, in order to minimize the possibility that one tax-saving maneuver doesn't end up costing additional money in the future.