Monthly Newsletter for January 2015

by in Newsletter on Jan. 2, 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