ELECTRONIC REFUNDS LIMITED TO THREE PER ACCOUNT

The IRS announces that, as part of its efforts to curb fraud and identity theft, it will no longer directly deposit more than three electronic refunds to a single financial account or prepaid debit card. Taxpayers who exceed the limit will receive an IRS notice and a paper refund.

The IRS also warns that direct deposit must be made only to accounts bearing the taxpayer's name.

NEW "ABLE" ACCOUNTS ARE NOW AVAILABLE

The Tax Increase Prevention Act of 2014 that was signed last December mainly affected the year 2014 as it extended for that year only some 50 tax breaks that had expired earlier. One provision, however, became effective in 2015. Starting this year, the law authorizes tax-favored ABLE accounts for disabled individuals. These "Achieving a Better Life Experience" accounts are exempt from income tax when the funds are used to pay for qualified expenses such as transportation, housing, education, and medical costs. Nonqualified distributions are subject to income tax, plus a 10% penalty. If you would like details about ABLE accounts, contact our office at (518) 798-3330.

HOMEOWNERS: DON'T MAKE THESE COMMON INSURANCE MISTAKES

Catastrophes, thefts, natural disasters, accidents, fires – they happen. If such misfortunes strike, a well-researched and up-to-date homeowner's insurance policy can keep your family's finances afloat during trying times.

SHOULD YOU HAVE A BUSINESS BUY-SELL AGREEMENT?

What will happen to your business if you die, retire, or become disabled? If you are the owner of a small business, you need a means for the transfer of that business in the event something happens to you.

ELECT S CORPORATION STATUS BY MARCH 16

If you own a small business, you have until March 16, 2015, to choose S corporation status for this year. In order to become an S corporation, you'll need the unanimous approval of all shareholders.

WARNING: WATCH OUT FOR AGGRESSIVE PHONE SCAMS AGAIN THIS TAX SEASON

The Treasury Inspector General for Taxpayer Administration (TIGTA) is warning taxpayers about one particular category of tax scams that has proven to be very widespread, very aggressive, and very relentless.

UPDATE YOUR BENEFICIARY DESIGNATIONS

Who have you designated as beneficiaries for your insurance policies and retirement accounts? If you can't remember, you're not alone. But it's worth checking.

DON'T FORGET ABOUT THE NANNY TAX

A good domestic worker can help take care of your children, assist an elderly parent, or keep your household running smoothly. Unfortunately, domestic workers can also make your tax situation more complicated.

CONGRESS RETROACTIVELY EXTENDS TAX BREAKS FOR 2014

In its final session of the year, Congress extended a long list of tax breaks that had expired, retroactive to the beginning of 2014. But, the reprieve is only temporary.

NOT ALL "INCOME" IS TAXABLE

There are several sources of revenue that are not subject to income tax.

Here are the most common sources of money that are not taxed on your federal income tax return:

*        Borrowed money such as from banks or personal loans.

*        Money received as a gift or inheritance from family or friends.

*        Money paid on your behalf directly to a school or medical facility.

*        Most life insurance proceeds.

*        Cash rebates from businesses when you buy an item.

*        Child support payments.

*        Money you receive for sustaining an injury.

*        Scholarships for tuition and books.

*        Disability insurance proceeds from a policy purchased with after-tax dollars.

*        Up to $500,000 of profit for a couple selling their personal residence.

*        Interest received on municipal bonds.

If you have included any of these on your income tax return for the past three years, you can amend your return for a tax refund.

If you would like assistance in determining what to include on your income tax return, please contact us at (518) 798-3330. We are here to help you.

MAKE RETIREMENT PLAN CONTRIBUTIONS EARLY

With retirement plan contributions, it's the early bird who maximizes tax-deferred earnings. Make your contributions as early in the year as you can. For 2015, you can contribute up to $5,500 to an IRA ($6,500 if you're 50 or older). The limit for 401(k) contributions increases in 2015 to $18,000 ($24,000 if you're 50 or older), and the limit for SIMPLE contributions is $12,500 ($15,500 if you're 50 or older).