Ohio Tax Changes for 2014
Changes were recently made to Ohio’s tax structure again for 2014. These include an accelleration of the planned tax reductions, higher deduction for small business income (this was 50% in 2013, it will be 75% in 2014), greater credit for earned income and a higher standard exemption. Details can be read in this press release. We see these changes as all positive for the taxpayer.
2015 Inflation Adjusted Items Announced
The IRS announced many of the annually-adjusted tax amounts for 2015 this week. These include the tax brackets, AMT exemption amounts, gift tax, and FSA limits. Details can be found here.
New IRS Video Explains What To Expect On 2014 Tax Forms
The IRS recently released another video explaining changes to the tax forms and more on the reporting requirements associated with healthcare for 2014 tax returns.
As usual, the video indicates it will not impact most individual taxpayers for 2014, but does help explain some of the other reporting requirements that are discussed frequently in the press.
IRA “One Rollover Per Year” Rules Clarified
Earlier this year, the IRS clarified its position on the “one rollover per year” rule for IRAs after the issue was brought before the Tax Court. This does not involve trustee-to-trustee rollovers directly between brokers, but instead deals with the issue of a check issued directly to the taxpayer that is subsequently rolled over within the normal 60 day window. It says that the rule does not apply to indivual accounts, but to the aggregate IRAs held by a taxpayer. More can be read on this announcement here. This rule becomes effective in 2015.
IRS Plans to Revisit Application of SECA Tax to LLC Members
The rules regarding the application of self-employement taxes to LLC members contains many gray areas for those members that are not active in the operation of the business. It has been this way since 1997 when the concept of LLC’s was new and the initial guidance was issued. In a recent Priority Guidance Plan for 2014-2015, the IRS mentions this issue as a topic it plans to address in the future.
Time to Start Gearing Up for Health Insurance Reporting for Large Employers
Beginning in early 2016, employers of more than 50 full-time equivalent employees must start reporting information under the ACA. The IRS recently released this draft form of the instructions for Forms 1094-C and 1095-C to provide more guidance in the area. If you have questions regarding this requirement, please give us a call.
