As of January 20, the 2015 tax season is officially underway. CPAs are working late hours, and the IRS started receiving any early-bird's tax returns. Although we at Weston Banks Wealth Partners specialize in wealth management, we have compiled a few tax tips for you and put together a resource that highlights this year's tax law changes.
IMPORTANT DATES TO REMEMBER:
- April 15, 2015
- 2014 Individual Tax Returns Due
- Individual Tax Return Extension Form Due, to push back your deadline to October 15, 2015
- 1st Quarter 2015 Estimated Tax Payment Due
- Last day to make an IRA contribution, if you have not already contributed fully to your retirement account.
- June 15, 2015
- 2nd Quarter 2015 Estimated Tax Payment Due
- September 16, 2015
- Extended Individual Tax Returns Due
- Last chance to recharacterize 2014 Roth IRA Conversion, if you paid taxes on your conversion from a traditional IRA to a Roth.
WHEN PREPARING FOR THIS YEAR'S TAXES, CONSIDER THE FOLLOWING:
- Contribute the Maximum to your IRA
- In 2015, you are able to contribute a maximum of $5,500 to an IRA, plus an additional $1,000 if you are 50 years or older. You can split this amount between a traditional IRA and a Roth IRA, but the combined amount cannot exceed $5,500 or $6,500.
- Check your Required Minimum Distributions
- After the year you turn age 70.5, you are required to take Required Minimum Distributions (RMDs) from your traditional IRA by April 1st. If you do not take out that minimum amount, there is a 50% excise tax on the amount you should have withdrawn.
- Pay attention to your FSA
- If you have not already done this, you should specify how much of your salary you want to contribute to your Flexible Spending Account. In 2015, the annual limit for employee contributions to sponsored health FSAs increased to $2,550, a $50 increase from 2014.
TO STAY CURRENT ON OTHER CHANGES, PLEASE DOWNLOAD OUR 2015 GUIDE TO TAX LAW CHANGES.
The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us or the purchase or sale of any securities.