1099 reporting deadline/ 2015 tax withholding/ Retirement contributions

February 2 is deadline for 1099 reporting. Form 1099s must be filed by businesses each year. This year the deadline for filing falls on February 2, though electronic filers have until March 31 to file. The most common form for businesses is probably Form 1099-MISC, used to report miscellaneous payments to nonemployees. This includes fees for services paid to independent contractors, such as consultants, lawyers, cleaning services, and others. Generally, you don’t report fees paid to corporations, but there are exceptions (payments to lawyers, for example).

Check your tax withholding for 2015. Withholding too much tax from your wages isn’t a smart financial move. Review how much you’re having withheld in 2015 to see if it matches the actual tax liability you expect to have. If an adjustment is needed, file a new Form W-4 with your employer.

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 the following:

IRA – $5,500 ($6,500 if you’re 50 or older)
401(k) – $18,000 ($24,000 if you’re 50 or older)
SIMPLE IRA -$12,500 ($15,500 if you’re 50 or older).

For details or filing assistance, contact our office.