Three Tips to Start the Tax Filing Season

Guess what? It’s that time of the year again. Nope, I’m not talking about Christmas. I’m talking about one of your favorite things to do: filing your taxes.
Hello, this is Noel Dalmacio, your ultimate CPA at lowermytaxnow.com.
Today, you will learn three tips to start your tax filing season. Are you ready?
Number 1. Check whether your kids need to file a 2015 tax return. They’ll need to file if wages exceeded $6,300, net business income was over $400, and if interest or dividend exceeded $1,050. However, when income includes both wages and investment income, other thresholds apply.
Number 2. Consider whether you’ll contribute to a Roth or traditional IRA. Since you have until April 18 to make a 2015 contribution, you can schedule an amount to set aside from each paycheck for the next few months. The maximum contribution for 2015 is the lesser of your earned income or $5,500 ($6,500 when you’re age 50 or older). When funding the IRAs make sure you indicate that this is for the 2015 tax year.
Number 3. Do you need to file a gift tax return?
For 2015, you may need to file a return if you gave gifts totaling $14,000 to someone other than your spouse. Some gifts, such as direct payments of medical bills or tuition, are not subject to gift tax. They are due at the same time as your federal income tax return. There you have it. So just make sure you keep in mind these three tips once you start filing your taxes.
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Until then, this is Noel Dalmacio, your ultimate CPA at lowermytaxnow.com