New year, new tax situation

A new year doesn’t just mean remembering to write 2015 instead of 2014 after the date.  Many of us have experienced changes in 2014 that will impact our tax status for 2015.

If you recently married, had a change in dependent status, finalized a divorce, or even bought a new house, your tax situation probably changed. Right now is the perfect opportunity to adjust your wage withholding for these changes and prevent any penalties for under payment of taxes.

Changes to your withholding are made by submitting an updated copy of IRS Form W-4.

Form W-4 IRS Withholding CPA Austin Taxes Launch Consulting

IRS Form W-4 Personal Allowance Worksheet

For more information on completing IRS Form W-4, Employee’s Withholding Allowance Certificate, contact Paul@LaunchConsultingInc.com or visit the IRS website.

If you are a business owner and experienced any of the changes mentioned above, Launch Consulting, Inc. can also help you correctly calculate your quarterly estimated tax payments.

Standard Mileage Rate Increases for 2015

Back in December, the IRS issued the optional standard mileage rate for business, medical, moving, and charitable deductible costs.

Taxpayers have the option to use this rate as an alternative to the actual costs of operating an automobile.

Surprisingly, with the fall of oil prices, the rate for 2015 increased to 57.5 cents/mile, up 1.5 cents from the 2014 rate of 56 cents/mile. This rate includes all the variable costs of operating a vehicle (depreciation, insurance, oil, gas, tires, maintenance, and repairs).

As a reminder, once you being using actual costs for a vehicle, including actual gas expenses, depreciation, and insurance, you cannot switch to the standard mileage method.

Launch Consulting CPA Austin Texas IRS Standard Mileage Rate

IRS Standard Mileage Rates

For more information on taking advantage of this deduction, contact Paul@LaunchConsultingInc.com or visit the IRS website.

Tax Deadline Reminder: 2014 Forms 1099

Almost halfway through January, the Form 1099-MISC deadline is quickly approaching. Copies of this form are due to the recipient at the end of January (February 2, 2015 for 2014 Forms, since January 31, 2015 is a Saturday) and due to the IRS at the end of February (March 2, 2015, since February 28, 2015 is a Saturday). Penalties for failing to file range from $30-$100 PER recipient.

Think you might be required to file? Visit my blog on who is require to file and find out!

Launch Consulting 2014 Form 1099-Misc, Tax Consulting, CPA, Tax Prepare, Austin, Texas

IRS “Red Copy” of 2014 Form 1099-MISC

 

For help filing these informational returns, contact Paul@LaunchConsultingInc.com

For full instructions, visit the IRS website using the link provided below:

http://www.irs.gov/pub/irs-prior/i1099msc–2014.pdf

Am I required to file Form 1099-MISC for 2014?

This is a question I get asked often from new clients. In short, 1099s are issued by businesses (sole-proprietors, LLCs, partnerships, corporations, etc.) who’ve made payments in excess of $600 to individuals or other businesses during the ordinary course of business. This includes services (contract labor), rents, royalties, and interest.

There are certain exceptions that apply to this $600 threshold, but we’ll attempt to keep this post as brief as possible. Under Code Section 6041, payments made to a “corporation” do not require returns of information, however 1099’s are still issued to law firms regardless of their entity structure.

Failure to file these required informational returns will result in penalties ranging from $30-100, depending on how late they are filed.

 

For help preparing Forms 1099-MISC, contact Paul@LaunchConsultingInc.com

Form more information on requirements for filing, visit the IRS website using the link provided below:

http://www.irs.gov/pub/irs-prior/i1099msc–2014.pdf