If you have an HSA account, you know you can contribute a certain amount each year to your account to pay for out of pocket medical expenses not covered by your high deductible health plan. The IRS has just released the amount allowed in 2015 that can be deposited and deducted for tax purposes – see this article in AccountingToday by Michael Cohn for more details: http://www.accountingtoday.com/news/irs-releases-hsa-deduction-limitations-for-2015-70387-1.html The amount increases each year by an amount based on the consumer price index. As long as all the contribution is used for allowable medical expenses it is all before tax and deducted on page one of the tax return, which guarantees the deduction without limitation. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Burbank CPA Musings: Wealthy paid 13% more tax on same income
This article in Marketwatch from the Wall Street Journal by Robert Klein takes a look at tax changes that have actually resulted in significant tax increases to the people in the highest tax bracket on the same income as last year. Click on the link below to take a look at this: http://www.marketwatch.com/story/wealthy-paid-13-more-tax-on-same-income-2014-04-25 The point is that tax law has been crafted over time to give more tax dollars to lower income people while penalizing people who earn a lot more income. The earned income credit and, to an extent, the education credits (they at least have a reasonable income limit) are examples of this form of wealth redistribution. And there is no reason to expect that things will change in the future. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
CPA Tax Musings: Ten Things to Know about IRS Notices and Letters
If you get one of these notices from the IRS, just remember: unless it says “your tax return is under examination” it is not an audit! Most letters and notices can be dealt with easily. See these tips from the IRS on Notices and Letters: http://content.govdelivery.com/accounts/USIRS/bulletins/b2bac5?reqfrom=share A letter or notice could deal with something as simple as a request for more information on a particular deduction to a misspelling or transposition of a social security number (or other ID number). Usually a response letter is all that is needed to clear things up. Sometimes more detail is needed and that is when you need to discuss it with your preparer (actually, it is best to let your preparer know that something has been received so it can be discussed if needed.) For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa