No Need For a Tax Lawyer in Sacramento, Know the 2015 Tax Law Changes on Your Own
Tax season has ended, but that doesn’t mean that staying up to date on tax law changes is a bad idea. Educating yourself year round about current changes can be the differences between paying a big check and receiving a big check at the end of the year. Many choose to hire a tax lawyer in Sacramento or other local area in order to help them with their tax questions; however staying informed on your own is the best way to really keep a good head about tax laws. Now all changes will affect you, but it’s still a good idea to be on the ball when it comes to new tax information. Here are a few changes to look out for.
Unemployment Benefits
Unemployment benefits are a taxable income. While unemployment provides a good stepping-stone from one job to another, the IRS taxes the money you received from this. You will receive a W-2 and 1099 with the amount of benefits reported, and it’s important that you keep track of all the money you received while on unemployment. Social security taxes are withheld as well. The recent U.S. Supreme Court decision clarified that supplemental unemployment compensation paid by a former employer will be taxable wage.
IRA Rollover Limits
Beginning in 2015, you will only be able to make one rollover from one IRA to another. A rollover means you withdraw funds from one IRA and then depositing it into another IRA. HuffingtonPost.com states:
“If you roll over more than one IRA, the withdrawals after the first will be taxed to you at regular rates, plus potentially a 10 percent early withdrawal tax. In addition, the disallowed rollover will be subject to the regular IRA contribution limits. If the rolled over amount exceeds your allowable IRA contribution, it will be treated as an excess contribution and subject to a 6 percent excise tax. The takeaway: Withdraw IRA funds with great care and attention in 2015 and going forward.”
These are just a few of the tax changes taking place in 2015. Whether you’re seeking out a tax lawyer in San Diego, or a CPA in another state for your taxes- knowing all the information on your own is the best way to be a dutiful taxpayer.
(2015 Tax Law Changes You Need to Know About, January 2015)
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