Helpful Data as You Finalize Your Individual Tax Return

Mid-April: a busy time for you, and us! As you prepare your individual return—or file for an extension—this year, review this information below from our 2016 Tax Update to ensure you’re fully ready to complete your 2015 taxes.Use the Home Office DeductionThe rules became more favorable recently. With safe harbor amounts of $5 per square foot up to 300 feet, you don’t need to provide detailed expenses.No depreciation consideration exists and your mortgage interest and real estate taxes are fully allowable on Schedule A, assuming your mortgage balance stays below $1,000,000 all year.Achieving a Better Life Experience (ABLE)ABLE accounts were approved for 2014, although some states didn’t permit them so early. These accounts function similar to a Section 529 education account, but they benefit disabled individuals up to age 26. The funds can be used for living expenses and they don’t affect SSI or similar benefits.MyRAThese employer-sponsored retirement plans allow very small contributions into special IRA accounts invested in specified U.S. government bonds (up to the annual IRA limit). The account can grow to $15,000 before rolling to a private Roth IRA account.IRA WithdrawalsTiming is important for IRA withdrawals, Roth rollovers, liquidating annuities and investments with considerable untaxed gains, and beginning the receipt of Social Security benefits. Remember, you should closely manage your AGI each year.Your planning of these financial activities can impact your income tax substantially during your 60’s, and perhaps the rest of your life. If you’re entering this stage of life, let’s talk about a multi-year strategy to minimize problems and maximize opportunities.The complexity of the tax code only adds stress and confusion to the filing process and causes millions of people to file for an extension. If you need assistance with any tax-related issues, even after the April deadline, the experienced team at Patrick & Robinson CPAs can help guide you. Contact us at Office@CPAsite.com or (904) 396-5400.