As we come to the close of another year, we’d like to highlight a few things you might need to know as we head into 2015. A quick disclaimer up front is that some of this information is geared towards New York state residents.
* New York state’s Corporate Minimum Fixed Dollar amount is based on gross receipts. Extensions should be filed by the beginning of March. A few things to know regarding this are:
- Fixed dollar minimum tax for general business taxpayers under $100,000 is $25;
- More than $100,000 but not over $250,000 is $75;
- More than $250,000 but not over $500,000 is $175
* The penalty for those who don’t have health care coverage will be paid out in 2015. The minimum penalty amount is $95 for singles, upwards of $1,000 for married couples with dependent children. It’s all based on your tax return. You need to know that this counts as income, not what you’ll actually have to pay so don’t panic. Still, it’s something to look at for 2015 because the rates will be much higher come 2016. Also, if you paid for health care insurance through the program this year, didn’t get any upfront adjustments and didn’t have any of it paid by an employer, you’re probably going to get a nice deduction, as well as be qualified to write off other health care expenses.
* Business mileage for 2014 is 56 cents a mile. The minimum allowable payment for meal expenses is $46.
* If you have kids in college, you can still get the American Opportunity Credit up to $2,500, which can be used for the normal 4 years it takes to get a bachelor’s degree. Out of that, 40% of it may be refundable. The student loan interest deductible is still $2,500 a year.
* The maximum Earned Income Credit for 3 children is $6,143 and $5,460 for 2 children.
There are many other changes this year, which includes many deductions taken away. As always, we recommend seeing an accountant to try to get the maximum benefit possible.
