Schedule Your Tax Preparation Appointment Now
It’s definitely not too early to start thinking about tax preparation. In fact, getting an early start makes sense for several reasons:
- If you are due a refund, get your money now and put it to work for you, rather than letting it work for the IRS.
- IRS processing is less busy early, so you’ll also get your refund faster.
- If you owe taxes, you have more time to prepare for payment, eliminating penalties and expensive last-minute payment options.
- Reduce the odds of identity theft since you create less opportunity for someone else to file using your name when you file early.
- Maximize college financial aid: If you have college-aged children, you need your tax information early to maximize the amount of financial aid you might receive.
- More time to catch… and eliminate costly mistakes.
- Eliminate the stress associated with April 15th.
We want your tax appointment to be as successful as possible, so please do some advance preparation and be certain to bring the following documentation along to your appointment:
- All W-2s
- Any 1099 forms (including 1099-MISC, 1099-DIV, 1099-INT, 1099-R, 1099-S, 1099-K, etc.)
- Any 1095 forms received if you applied for health insurance through the “Exchange.”
- Each insured member of your household may receive one or more forms.
- Records of other income (tips, self-employment, SSI, etc.)
- Year-end brokerage and bank statements
- Last year’s tax return
Additionally, Waddy has created a tax organizer for your convenience. Click here to download the organizer. This information will help us help you avoid overpaying any taxes and potentially reduce your tax liability for the future. If you are missing some items, you may be able to Request a Transcript directly from the IRS website.
Affordable Care Act Updates
You are required to have health insurance effective Jan. 1, 2014. To avoid paying the penalty for not having health insurance under the Affordable Care Act, we will report your minimal essential coverage health insurance on your federal income tax return. Open enrollment for 2015 ends Feb. 15, 2015, so you can enroll and apply for cost assistance until that date. If you do not have coverage, you must apply for an exemption in order to avoid paying the penalty (Individual Shared Responsibility fee).
Qualifying for an Exemption
There are several different types of exemptions, some of which require documentation. Some exemptions are based on hardship. (Click here to review the full list of Affordable Care Act exemptions.)
If you plan to file for an exemption, as with filing your tax return, it pays to file sooner than later. You will need to complete forms and wait for a confirmation before you can report the exemption. Additionally, for those exemptions that require documentation, you may need to wait to receive those documents. These can both delay your ability to file your tax return.
Individual Shared Responsibility
If you do not have health insurance and do not qualify for (or fail to apply for) an exemption, you will be required to pay the Individual Shared Responsibility fee. For 2015, this fee is $325.00 per adult and $162.50 per child (to a maximum of $975.00 per family) or two percent of your taxable income, whichever is greater.
The Affordable Care Act requirements have created countless questions regarding your tax return. At Waddy, we can provide the answers you need!
The start of the year is also the ideal time to conduct a review of your beneficiaries. You likely have several different accounts that have associated beneficiaries that will need review, including:
- IRA accounts (both Traditional and Roth)
- 401(k) accounts
- POD (payable-on-death) bank accounts
- Life insurance policies
Take a few minutes to review these to ensure you have the correct individuals set up to receive your life’s earnings!