While not everyone has completed tax returns for 2014, it is never to soon to think about ways to secure a good tax outcome in 2015. In this post we will highlight several of the recent changes that tax payers should keep in mind this year.
The first pertains to individuals who have IRAs. As a result of a tax court case that was resolved last year a tax payer can only rollover an IRA once every 12 months. As a workaround, individuals might consider a trustee-to-trustee transfer.
Another pending change affecting income tax for some residents of the state of California will likely be resolved by the end of the year. It, of course, is the recognition of same-sex marriage. With cases pending with the Supreme Court, this matter as well as its accompanying tax issues, is expected to be addressed. Couples to whom this pertains should keep an eye on the matter and expect further information regarding how their marriage will be construed.
The next thing taxpayers should be aware of is the net vestment income tax. A product of the American Taxpayer Relief Act of 2012, the levels for singles and married-filing jointly, do not change to account for inflation. It is applicable to those with a modified adjust gross income over $200,000 and $250,000 respectively.
Last, health care penalties need to be addressed. Taxpayers can expect to have to provide information regarding their health insurance situations. More specifically, they will need to disclose whether they were insured and whether they received tax credits. Depending on a personas specific situation, he or she may need to repay the subsidies received.
In addition to being a pain for taxpayers to have to address in a tax return, changes such as theses could result in mistakes being made on returns. These mistakes could result in issue with the IRS later on, possibly in the form of an audit. Those who find they are in this situation could benefit from working with a lawyer.
Source: Investment News, Tax traps to avoid in 2015, Darla Mercado, Jan. 20, 2015