McCullough & Associates Blog

Did you pay for college expenses in 2014?  If so, you might qualify for additional tax savings on your federal tax return. There are two education credits that can help you with the cost of higher education. The credits may reduce the amount of tax you owe on your tax return. Here are some important facts you should know about education tax credits.

American Opportunity…

Some people take an early withdrawal from their IRA or retirement plan. Doing so in many cases triggers an added penalty on top of the income tax you may have to pay. Here are some key points you should know about taking an early withdrawal:

1. Early Withdrawals.  An early withdrawal normally means taking the money out of your retirement plan or IRA before you…

All income is taxable unless the law excludes it. Here are some basic rules you should know to make sure you file an accurate tax return:

Taxed income.  Taxable income includes money you earn, like wages and tips, income from self-employment, and from buying and selling things for a profit. It also includes bartering, an exchange of property…

Officer Aaron Pearson of the Springfield Police Department was shot in the head in the line of duty on January 26th.  We have received information about a community wide event  to support Officer Pearson and the Springfield Police Department. We wanted to share that information with you in case you wanted to be a part of this community event.

Fundraising Event…

Every year the IRS releases a list of their "Dirty Dozen" tax scams.  Fake charities almost always makes the list as it did again for 2015.  When making a donation, taxpayers should take a few minutes to ensure their hard-earned money goes to a legitimate and currently eligible charity.

Here are some basic tips when making a charitable donation:

• Be wary of charities…

If you worked and received wages in 2014, review the 2014 IRA contribution and deduction limits below to make sure you are taking full advantage of the opportunity to save for your retirement.  

You can make 2014 IRA contributions until April 15, 2015.

For 2014, your…

The Internal Revenue Service has issued the 2015 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2015, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

• 57.5 cents per mile for business…

The Affordable Care Act requires that a taxpayer and each member of their family either has qualifying health insurance coverage for each month of the year, qualifies for an exemption, or makes an individual shared responsibility payment when filing their federal income tax return. Some moderate-income taxpayers may also qualify for financial assistance to help cover the cost of health insurance…

Late in the day on December 16, 2014 the U.S. Senate passed a $42 billion package of tax incentives, reviving dozens of lapsed breaks for 2014. These provisions are retroactively reinstated to 1-1-2014.  The bill now goes to the White House where President Obama is expected to sign it.

What's not clear yet is whether passage of the tax extenders bill so…

Be sure to check out our Winter 2014 newsletter.  
This issue includes articles on the following topics:

• Tax Efficient Portfolio Investments
• Social Security Benefit Increase for 2015
• 2015 Retirement Contribution Limits
• Required Minimum Distributions
• Health…