Paldino Company CPA - "Success Starts with a Handshake"

Welcome to my blog page the purpose of which is to provide you with timely and relevant tax and accounting information. I intend to bring you information which you can use now to assist you in lowering you income taxes. I will when appropriate give you links to tax related web-sites, worksheets and check-list to assist you in meeting you recording keeping requirements and provide you with the information you need to prepare an accurate return and pay the least amount of tax you are legally required to pay. Please check back often and feel free to post your questions and comments















Friday, October 31, 2014

2015 Social Security Benefits Announced


2015 Social Security Benefits Announced
Category:
Retirement
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The Social Security Administration recently announced monthly social security and supplemental security income benefits (SSI) will increase in 2015 by 1.7%. This increase is based upon the Consumer Price Index over the past 12 months ending in September 2014. In addition, other figures based on the national average wage index will also be changed. A recap of the key amounts is outlined here:

2015 Key Social Security Benefits

2015 Social Security Benefits

What does it mean for you?

  • Up to $118,500 in wages will be subject to Social Security Taxes (up $1,500 or $93 in additional Social Security tax per employee and per employer)
  • The average Social Security retirement beneficiary will receive an additional $264 in 2015.
  • For all retired workers receiving Social Security retirement benefits the average monthly benefit of $1,306/mo. in 2014 will become $1,328/mo. in 2015.
  • SSI (Supplemental Security Income) is the standard payment for people in need. To qualify for this payment you must have little income and few resources ($2,000 if single/$3,000 if married).
  • A full-time student who is blind or disabled can still receive Supplemental Security Income (SSI) benefits as long as earned income does not exceed the student exclusion amounts listed above.

Social Security & Medicare Rates

After temporary payroll tax rate cuts that ended in 2012, the rates do not change from 2014 to 2015.
2015 Withholding Limits
Note: The above tax rates are a combination of 6.20% Social Security and 1.45% for Medicare. There is also a Medicare .9% wages surtax that began in 2013 for those with wages above $200,000 single ($250,000 joint filers) that is not reflected in these figures. Please recall that your employer also pays Social Security and Medicare taxes on your behalf. These figures are reflected in the self-employed tax rates, as self-employed individuals pay both halves of the tax.

Saturday, October 25, 2014

Are you prepared for this new IRS Form?


W-2s, 1099s...and Now 1095-A

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There will be a new tax form filling mailboxes beginning January, 2015. This Form 1095-A is a Health Insurance Marketplace Statement. If you participate in the Healthcare Marketplace, you will need this new form prior to filing your tax return. Here is what you need to know.

Background

Each year the tax-filing season begins with the receipt of forms required to file your tax return. Employees receive W-2s from their employers. Individuals receive various 1099 forms for reporting interest, dividends, capital gains and independent earnings as sole proprietors. If you used the Healthcare Marketplace to purchase health insurance, you will now need your 1095-A form to file your tax return.

What 1095-A provides

Form 1095-A will provide you with a monthly recap of the health insurance you purchased through the Healthcare Marketplace. It will recap the name of the enrollee and any other people covered within the health insurance. The form will also summarize your health insurance policy including the type of coverage and the dates of coverage.

What you need to know

  • The information on this form is being sent to the IRS. If there are errors in this form you should take steps immediately to correct them.
  • You need this form to file your taxes. If you use the Healthcare Marketplace do not file your tax return without receiving an accurate 1095-A.
  • You may receive multiple 1095-A forms. You should receive one Form 1095-A for each policy you have through the Healthcare Marketplace. Receiving multiple forms may also occur if you have non-dependents receiving coverage under your health insurance plan.
  • Premium Tax Credit in your future? The information on the form will help determine if you are eligible for the Premium Tax Credit when you file your tax return.
  • Advance Payments of the credit may create a tax obligation. Form 1095-A will show you any advance payments of your Premium Tax Credit made to your insurance company. Excess Advance Premium payments may have to be returned when you file your tax return.
  • Review the months of coverage. If you do not have health insurance coverage for the entire year, this report may also be used to determine if you owe shared responsibility taxes for part of the year.