Monthly Newsletter for January 2015
Monthly Newsletter for January 2015
During January
All Employers: Give your employees their copies of Form W-2 for 2014 by February 2, 2015.
All Businesses: Give annual information statements to recipients of certain payments you made during 2014. You can use the appropriate version of Form 1099 or other information return. Payments that may be covered include the following:
Cash Payments for fish or other aquatic life purchased from anyone engaged in the trade or business of catching fish.
Compensation for workers who are not considered employees.
Dividends and other corporate distributions.
Interest, Rent, and Royalties.
Payments of Indian gaming profits to tribal members.
Profit-sharing distributions, Retirements plan distributions, Original issue discount, prizes and awards.
Medical and health care payments.
Debt cancellation (treated as payment to debtor).
Cash payments over $10,000.
New Year, New Tax Guidelines
Every New Year brings at least a few new IRS guidelines and 2015 is no different. Brown Jenkins & Oneyear, PA, has put together a list of the most noteworthy changes. While this list is not comprehensive, it will help most businesses and individuals understand the major changes.
2015 Tax Quick Reference Table
Mileage Rates: 2014 2015
Business 56.0 57.5 cents per mile Charitable 14.0 14.0 cents per mile Medical & Moving 23.5 23.0 cents per mile
Child Tax Credit $1.000
Estate Tax Applicable Credit Equivalent $5,430,000
Gift Tax Applicable Credit Equivalent $5,430,000
Gift Tax Annual Exclusion $14,000
Social Security Withholding Tax Wage Base $118,500.
Medicare Withholding Tax Wage Base Unlimited
Federal Unemployment Tax Wage Base $7,000
NC Unemployment Tax Wage Base $21,700
Threshold for Nanny Tax $1,900
Maximum 401(k)/403(b) Salary Deferral $18,000; $24,000 if age 50
Maximum SIMPLE Plan Salary Deferral $12,500; $15,500 if age 50
Maximum IRA Annual Contribution Limitation $5,500; $6,500 if age 50
Profit-Sharing Contribution Limitation $53,000
Annual Compensation Limitation $265,000
for Defined Contribution Plan
Social Security Cost of Living Adjustment 1.7%
(COLA) for Social Security Beneficiaries
Earning Ceilings for Social Security:
Below Full Retirement Age (FRA) $15,720 Lose $1 for $2 earned
Year FRA is Attained $41,880 Lose $1 for $3 earned
After FRA is Attained Unlimited