Top Four Year-End IRA Reminders

Contribution Limits

Individual Retirement Accounts (IRAs) are an important way for anyone  to save for retirement. If you already have an IRA or may open one soon in the near future, there are some key year-end rules that you may want to know. Below are the top four reminders on IRAs:

Four Basic Tax Tips about Hobbies

There are lots of people who enjoy hobbies that are also a source of their income.

 Stamp Collection

Some examples include stamp collection, coin collections, craft making, and horsemanship.

You must report on your tax return all of the income that you earn from your hobby. The rules of how you report your income and expenses depend on whether the activity is considered a hobby or a business. There are special rules and limitation for deductions that you can claim for a hobby. Here are four tax tips you should know about hobbies:

More about Premium Tax Credit

If you moved or get married recently, it is a good idea to add a health insurance review to your to-do
list. This is particularly important if you receive an advance payment of the premium tax credit through a Health Insurance Marketplace.

IRA contribution and deduction rules for 2014

Using individual retirement arrangements (IRA) is a very good way to save for your retirement. However, there are limits on how much you can contribute each year. There are also other factors that will affect the amount you can deduct on your traditional IRA contributions.  Roth IRA contributions, however, are not deductible.

Back to School College Tax Credit

 College Tax Credit

With another school year now already in full swing,
it is a good time for both parents and students to see if they will qualify for one of the two college tax credits when they file their 2014 federal income tax returns next year.
The two college tax credits are American Opportunity Credit (AOC) and Lifetime Learning Credit.

What is Taxable and Nontaxable Income?

Taxable or Nontaxable?

Generally speaking, all of your income is taxable unless it is specifically exempted by law. All the taxable income must be reported on your tax return and is subject to tax.  Income that is nontaxable may also have to be shown on your tax return but is not taxable.  In brief, income can include the following.

Moving This Summer?

Summer usually is a popular time for people to move. 

We are moving!

It is especially true for families with school children.   If you are planning to move because of starting a new job or even the same job at a new job location, there are 10 tax tips on expenses that you may be able to deduct on your tax return.

Standard Deduction or Itemized Deduction?

 Standard or itemize deduction?

The standard deduction is a set dollar amount that can reduce your taxable income. It is adjusted each year for inflation and varies according to your filing status. You cannot take the standard deduction if you itemize deductions.

What Is The Saver’s Credit?

 Save for your retirement

The Saver’s Credit also known as the retirement savings contributions credit, this is the tax credit which helps both low and moderate income workers to save for their retirement.

Like other tax credits, the Saver’s Credit can either increase a taxpayer’s refund or reduce the balance due.

What Is The Premium Tax Credit?

 Premium Tax Credit

The Premium Tax Credit is a refundable tax credit that helps eligible taxpayers with moderate incomes to be able to afford health insurance purchased through the Health Insurance Marketplace. To be eligible for the credit, you need to satisfy five rules. 

1. You need to get your health insurance coverage through the Health Insurance Marketplace.

What Is Child and Dependent Care Credit?

Child Care Credit

If you pay for childcare or day camps in the summer while you work, your expenses may qualify for a Child and Dependent Care Credit that can lower your taxes. Here are 10 facts that you should know about this credit:

What Is A SEP-IRA?

 Simplified Employee Pension Plan

A SEP-IRA is a Simplified Employee Pension plan. This plan provides a significant source of income at retirement by allowing employers to set aside money in retirement accounts both for themselves and also for their employees.  A business of any size, even self-employed, can establish a SEP-IRA.

What is a compensation?

 Your Earned Income

Generally speaking, a compensation is what you earn from working. In other words, it is your earned income. It can include all of the items discussed below.

• Wages, salaries, etc.   Wages, salaries, tips, professional fees, bonuses, and other amounts you

What is IRA?

 Traditional or Roth IRA?

IRAs means Individual Retirement Arrangements. There are four types of IRA-based retirement plans:  The two most popular ones are Traditional IRA and Roth IRA.

A traditional IRA is a personal savings plan that gives you tax advantages of saving for your retirement. 

What is Earned Income Tax Credit?

Earned income from employment

Earned Income Tax Credit, sometimes called EITC that is a tax credit to help you keep more of what you earned. To qualify, you must first meet certain basic requirements and then you must file a tax return to claim the credit. 

Do You Need to File a Federal Income Tax Return?

 Do you have to file?

Many people have already filed their 2013 Federal income tax return even though their income on the return was below the filing requirement.  The questions below will help you to determine if you need to file a Federal Income Tax Return for next tax season.