Late last week, The House voted to repeal the Affordable Care Act. The new American Health Care Act barely passed in a 217-213 vote.
So what does this mean to you?
It repeals the key measures requiring all individuals to get health insurance and for most employers to provide medical insurance to employees. The new plan may allow a market-based system that would let people make more health-coverage decisions for themselves. It will also replace Obamacare subsidies with tax credits based primarily on age that phase out for people with incomes above $75,000. Overall, insurance could be more affordable and premiums may be reduced.
However, some states could allow insurers to charge more for pre-existing conditions, if they had a gap in coverage, so long as there is assistance provided by states for those priced out of commercial rates, such as the high-risk pools. States could also get waivers for essential coverage of pre-existing conditions, such as maternity care.
We shall see everything that is included in the bill soon, and what changes or amendments are in store.
Monday, May 8, 2017
Thursday, March 2, 2017
2016 IRA Savings Still Available Until April 18th!
Are you looking to save money on taxes for the 2016 tax year? You still have time to contribute into an IRA! The contribution must be made by April 18, 2017, and it will count for the 2016 tax year. If you have already filed your taxes, you can file an amendment, Form 1040X, to take advantage of this incredible tax savings.
Tax Saver’s Credit
Low- and moderate-income workers can take steps now to save for retirement and earn a special tax credit in 2016. Eligible workers still have time to make qualifying retirement contributions and get the saver’s credit on their 2016 tax return. People have until April 18, 2017, to set up a new individual retirement arrangement or add money to an existing IRA for 2016. However, elective deferrals (contributions) must be made by the end of the year to a 401(k) plan or similar workplace program, such as a 403(b) plan for employees of public schools and certain tax-exempt organizations, a governmental 457 plan for state or local government employees, and the Thrift Savings Plan for federal employees.
The saver’s credit helps offset part of the first $2,000 workers voluntarily contribute to IRAs and to 401(k) plans and similar workplace retirement programs. Also known as the Retirement Savings Contributions Credit, the Saver’s Credit is available in addition to any other tax savings that apply.
You are limited by
law how much you can contribute annually to IRAs, including your myRA account. For 2016,
total annual contributions to all your IRAs combined cannot exceed $5,500 per
year (or $6,500 per year if you are age 50 or older). Contribution limits are
subject to an annual cost of living adjustment.
For questions on how to open an IRA, or to include your contributions and save money on your tax return, call or email us.
Tax Saver’s Credit
Low- and moderate-income workers can take steps now to save for retirement and earn a special tax credit in 2016. Eligible workers still have time to make qualifying retirement contributions and get the saver’s credit on their 2016 tax return. People have until April 18, 2017, to set up a new individual retirement arrangement or add money to an existing IRA for 2016. However, elective deferrals (contributions) must be made by the end of the year to a 401(k) plan or similar workplace program, such as a 403(b) plan for employees of public schools and certain tax-exempt organizations, a governmental 457 plan for state or local government employees, and the Thrift Savings Plan for federal employees.
The saver’s credit helps offset part of the first $2,000 workers voluntarily contribute to IRAs and to 401(k) plans and similar workplace retirement programs. Also known as the Retirement Savings Contributions Credit, the Saver’s Credit is available in addition to any other tax savings that apply.
Traditional IRA
A Traditional IRA is an Individual Retirement Account to which you can contribute
pre-tax or after-tax dollars, giving you immediate tax benefits if your
contributions are tax-deductible. With a Traditional IRA, your money can grow
tax-deferred, but you’ll pay ordinary income tax on your withdrawals, and you
must start taking distributions after age 70½. Unlike with a Roth IRA,
there are no income limitations to open a Traditional IRA. It may be a good
option for those who expect to be in the same or lower tax bracket in the
future.
Roth IRA
A Roth IRA
is an Individual Retirement Account to which you contribute after-tax dollars.
While there are no current-year tax benefits, your contributions and earnings
can grow tax-free, and you can withdraw them tax- and penalty-free after age
59½ and once the account has been open for five years. With a Roth IRA, there
are no contribution age restrictions, nor do you have to take Required Minimum
Distributions (RMDs).
A Roth IRA can be a good savings option for those who expect
to be in a higher tax bracket in the future, making tax-free withdrawals even
more advantageous. However, there are income limitations to open a Roth IRA, so
not everyone will be eligible for this type of retirement account.
myRA
myRA (my
Retirement Account) is a new way to start saving for your future developed by
the United States Department of the Treasury. myRA is a Roth IRA that invests in a new United
States Treasury retirement savings bond, which will not lose money. myRA was designed for people
without access to employer-sponsored retirement savings plans and for people
looking for a simple, safe, and affordable way to start saving for retirement. myRA accounts cost nothing
to open, have no fees, and don’t require a minimum amount of savings.
Contribution Limits
For questions on how to open an IRA, or to include your contributions and save money on your tax return, call or email us.
Wednesday, February 8, 2017
IRS Warns of Targeted Scams
Once again, the IRS has issued warnings of scams targeted at taxpayers.
Phone Scams
Aggressive con artists will call you and impersonate IRS agents, claiming that you owe the IRS hundreds and even thousands of dollars in back taxes. They try to bully you and tell you that you will be arrested. Some even claim they have arrest warrants. They will then demand that you make a payment to them to avoid arrest. They will do whatever they can to get your personal information and money. They also use alternate caller IDs to make it look like the IRS is calling you. IGNORE THESE CALLS OR HANG UP ON THEM.
The IRS and the State will NEVER call you directly or email you. Correspondence is only sent via U.S. Mail.
Phishing and Email Scams
The IRS saw an approximate 400 percent surge in phishing and malware incidents in the 2016 tax season. Scam emails are designed to trick taxpayers into thinking these are official communications from the IRS or others in the tax industry, including tax software companies. These phishing schemes can ask taxpayers about a wide range of topics. Emails can seek information related to refunds, filing status, confirming personal information, ordering transcripts and verifying PIN information.
Variations of these scams can be seen via text messages, and the communications are being reported in every section of the country. The IRS is aware of email phishing scams that appear to be from the IRS and include a link to a bogus web site intended to mirror the official IRS web site. These emails contain the direction “you are to update your IRS e-file immediately.” The emails mention USA.gov and IRSgov (without a dot between "IRS" and "gov"), though notably, not IRS.gov (with a dot).
These emails are not from the IRS. The sites ask for Social Security numbers and other personal information, which could be used to help file false tax returns. The sites also may carry malware, which can infect people's computers and allow criminals to access your files or track your keystrokes to gain information.
Remember: The IRS and the State will NEVER call you directly or email you. Correspondence is only sent via U.S. Mail. NEVER give out your personal information over the telephone or in email to anyone. Do not open documents or links that you do not know.
My business will also never request your personal information or for you to open any documents or links. We use state of the art encryption software, VPNs, the best security suite software and anti-theft software.
If you receive any mail correspondence from the IRS or State, please contact me as soon as possible.
Phone Scams
Aggressive con artists will call you and impersonate IRS agents, claiming that you owe the IRS hundreds and even thousands of dollars in back taxes. They try to bully you and tell you that you will be arrested. Some even claim they have arrest warrants. They will then demand that you make a payment to them to avoid arrest. They will do whatever they can to get your personal information and money. They also use alternate caller IDs to make it look like the IRS is calling you. IGNORE THESE CALLS OR HANG UP ON THEM.
The IRS and the State will NEVER call you directly or email you. Correspondence is only sent via U.S. Mail.
Phishing and Email Scams
The IRS saw an approximate 400 percent surge in phishing and malware incidents in the 2016 tax season. Scam emails are designed to trick taxpayers into thinking these are official communications from the IRS or others in the tax industry, including tax software companies. These phishing schemes can ask taxpayers about a wide range of topics. Emails can seek information related to refunds, filing status, confirming personal information, ordering transcripts and verifying PIN information.
Variations of these scams can be seen via text messages, and the communications are being reported in every section of the country. The IRS is aware of email phishing scams that appear to be from the IRS and include a link to a bogus web site intended to mirror the official IRS web site. These emails contain the direction “you are to update your IRS e-file immediately.” The emails mention USA.gov and IRSgov (without a dot between "IRS" and "gov"), though notably, not IRS.gov (with a dot).
These emails are not from the IRS. The sites ask for Social Security numbers and other personal information, which could be used to help file false tax returns. The sites also may carry malware, which can infect people's computers and allow criminals to access your files or track your keystrokes to gain information.
Remember: The IRS and the State will NEVER call you directly or email you. Correspondence is only sent via U.S. Mail. NEVER give out your personal information over the telephone or in email to anyone. Do not open documents or links that you do not know.
My business will also never request your personal information or for you to open any documents or links. We use state of the art encryption software, VPNs, the best security suite software and anti-theft software.
If you receive any mail correspondence from the IRS or State, please contact me as soon as possible.
Wednesday, January 25, 2017
Public Service Loan Forgiveness Program (PSLF)
Did you know that you may be eligible to have your student loan debt forgiven? Certain employees of the public sector including law enforcement, military, teachers, public health professionals and certain non-profit association employees may be eligible for the PSLF program after serving for 10 years at a public agency and making regular, full loan payments for 120 months. Only payments made after October 1, 2007 qualify.
For additional information, forms and full eligibility rules for the program, contact the Loan Consolidation Center at 1-800-557-7392 or visit them on the web at https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service
Call soon for your tax appointment at (209) 329-1255 or email me at tinataxpro@softcom.net.
Tina
Subscribe to:
Comments (Atom)