Additional information on last week’s post on documentation needed for charitable deductions

 

 

Cathy Robinson

Principal

robinson@hwco.com

 

Last week, I covered documentation you will need to report charitable deductions you have taken during the year. This week, consider additional, accompanying documentation which if you receive it, you will need to hold on to it for completion of your income tax return.

 

If you are working, you will receive your Form W-2 from your employer by January 31^st.  If you have a bank account, you may have received interest income during the year. If this is the case, you will receive a Form 1099-INT.   Furthermore, if you have a brokerage account or a mutual fund, you may have interest income, dividend income, or stock sales to report.  In this case, you should receive a consolidated Form 1099 and year end summary.  Another form you may receive is a 1099-G.  This form reports the amount of any tax refund you may have received in the prior year. 

 

If you were an independent contractor, you should receive a 1099 – MISC by January 31^st.  Additionally, did you take a withdrawal from a retirement account in 2015; did you roll over money to another retirement account?  If either of these scenarios happened, you will receive a Form 1099-R.  Lastly, were you a winner at the casino or the lottery?  If so, you will receive a W-2G.

 

Be alert and on the lookout for these forms in your mailbox soon!

 

Tax Extenders Still Have Not Passed So What Should I Still Be Doing?

 

 

 

Cathy Robinson, CPA

Senior Manager

robinson@hwco.com

 

 

Okay, it is December and Congress has not yet taken any action on provisions which have expired at the end of 2014.  There are still some things you should consider doing before year end:

 

1.       Review your withholding and estimated tax payments for 2015. 

2.       Consider if you are liable for the alternative minimum tax in 2015. 

3.        Consider realizing losses on stock to offset gains.

4.       Postpone any additional income until 2016.

5.       Accelerate any deductions in 2015.  Consider using your credit card to pay for the deductible expenses.

6.       Bunching of any expenses.  For example, pay three real estate bills in a year.

7.       Ask your employer to defer your 2015 bonus until 2016. 

 

These are just some suggestions in order to help eliminate an unpleasant surprise in April next year.  As with any tax advice you read or hear, you need to ensure the advice provided agrees with your tax situation.