Tax time is almost upon us! Heres some info. #NewsYouCanUse ATLANTA – The Internal Revenue Service will kick off the upcoming 2015 tax filing season on Jan. 20th, with reinstated deductions to help taxpayers. The agency also encouraged taxpayers and tax practitioners to take a fresh look at the many benefits of e-filing. “Tennessee experience another record breaking year with more than 2.5 million e-filed returns, said IRS Spokesman Mark Green. “Everyone should try e-file! It’s safe, easy, fast and accurate. I strongly recommend that taxpayers try it,” Green said. In addition, Green offer highlights that taxpayers should watch for as they file tax returns for 2014: What is the due date for the 2014 federal tax returns? Your tax return (or a request for an extension) must be filed no later than Wednesday, April 15, 2015 How many returns does the IRS expect to be filed this year? · Nationwide, the IRS expects to receive about 151 million 2014 individual tax returns. About 2.9 million from Tennessee When can people file their 2014 tax return? IRS plans to open the 2015 filing season and begin processing individual income tax returns on Jan. 20th. We (the IRS) will be working closely with the tax software industry and tax professional community to minimize delays and ensure as smooth a tax season as possible under the circumstances. What happens if someone files a paper return before the 20th? The IRS will not process paper tax returns before the anticipated Jan. 20 opening date. Will the extenders legislation affect the starting date? Taxpayers can file starting Jan. 20th, including those affected by Congress renewing a number of extender provisions (about 55) of the tax law that expired at the end of 2013. These provisions were renewed by Congress through the end of 2014. The final legislation was signed into law Dec 19, 2014. Some of the more popular renewed Tax Credits for Individuals are: Residential Energy Tax Credit - for installing energy efficient windows, doors, water heaters, etc. in an existing home. Up to $500 lifetime credit. Educators deduction of $250 for out-of-pocket classroom expenses - With this provision, originally enacted in 2002, teachers could deduct up to $250 of out-of-pocket expenses for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250 classroom materials. Sales Tax Deduction - One of the largest permanent tax breaks is the state and local tax deduction, which allows filers who itemize to deduct the amount paid in state or local income tax. However, people who live in states with no income tax cannot take advantage of this deduction. This provision created a deduction for sales tax states by allowing an individual to deduct either the amount they paid in sales tax or income tax since 2004. (Primarily benefiting people living in areas without state and local income taxes.) ~More~ Charitable Donations from an IRA - Under this provision created in 2006, retirees age 70.5 and older could donate up to $100,000 tax-free from their IRA each year to charity. Normally, the donation would be eligible for a charitable deduction, but this provision converts the deduction to a complete exclusion, which allows retirees to make their required IRA withdrawals without triggering a tax a Social Security benefits for retirees with income other than Social Security. Tuition and Fees Deduction - This deduction, in place since 2001, allows filers with incomes less than $65,000 a year ($130,000 if filing jointly) to deduct up to $4,000 of tuition and fees paid for higher education. This provision was for filers who did not claim one of the other educational credits, and it phased out entirely for filers with incomes over $80,000 ($160,000 if filing jointly). Benefiting parents and students. Claim on Form 8917 . Mortgage Debt Forgiveness - Normally, forgiven debt counts as taxable income. In response to the housing crisis, homeowners could exclude up to $2 million of canceled debt ($1 million if married filing separately) on their principal residence. The forgiveness must be directly related to a decline in the home’s value or the taxpayer’s financial condition. This provision was passed as temporary stimulus measure in 2007. Mortgage Insurance Premiums - itemized deduction. Parity for Commuter Transit Benefit - Before this provision expired, commuters could spend up to $245 a month of tax-free income for either transit or parking. After the expiration, the amount for transit has dropped to $130 a month, while the amount for parking rose with inflation to $250 a month, meaning that those who drive to work are now subsidized more than those who use public transit. The transit benefit originated in 1993 and became equal to the parking benefit in 2009.
Posted on: Thu, 08 Jan 2015 20:29:57 +0000
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