The IRS has launched a new campaign to encourage you to protect your tax and financial data, both digital and paper. As part of the campaign, the IRS plans to release videos and consumer friendly tax tips, and sponsor local events across the country. You can get started by reading the new Publication 4524, Security Awareness for Taxpayers, on the IRS web site (https://www.irs.gov/pub/irs-pdf/p4524.pdf). Other suggestions are on the Security Awareness Tax Tips page (https://www.irs.gov/uac/IRS-Security-Awareness-Tax-Tips). The campaign will continue through April.
Friday, January 29, 2016
Thursday, January 21, 2016
While retirement plan contribution limits have not increased for 2016, taking full advantage of allowable contributions and any amounts your employer matches is still a good idea. Contributions you make to employer-sponsored retirement plans reduce your taxable income because your employer deducts the amount you specify from your paycheck before taxes.
For 2016, you can contribute $18,000 to your 401(k), plus another $6,000 if you're celebrating your 50th or older birthday during 2016. You can save up to $12,500 in your SIMPLE account this year, plus another $3,000 if you're age 50 or over.
Friday, January 15, 2016
Standard mileage rates for deductible vehicle expenses have decreased from the 2015 rates. Here are the rates to use to calculate 2016 reimbursements and deductions.
Business. Starting January 1, the rate is 54 cents per mile for the use of a vehicle for business purposes. That's down from 57.5 cents in 2015.
Medical and moving. The rate for medical and moving mileage decreases from last year's 23 cents a mile to 19 cents a mile.
Charitable. The standard per-mile rate for charitable service remains at 14 cents.