IMPORTANT CHANGES FOR 2015 INDIVIDUAL TAX RETURNS 1

1040 FILING DEADLINES FOR 2015 MOST STATES 1040 FILING DEADLINE IS MONDAY APRIL 18TH *why? Emancipation Day is Friday April 15th. ( HOLIDAY) Exception: Maine and Massachusetts taxpayers file their 1040 taxes by April 19th. *why? These states celebrate Patriots Day, usually the day after April 15th, but because of a confusing movement of holidays and weekends, they file their 1040 taxes April 19th, a Tuesday. However, these 2 states file their first estimated payment for 2016 on the 18th of April 1040 extensions are October 15th, (pub 4012 page M 3) 2

Could you repeat that? 3

INFLATION ADJUSTMENTS Standard deductions Increases Personal/dependent exemptions increases Retirement Savings Contribution Credit income limits increased Earned Income credit amounts increases Standard Mileage rates :57.5 cents business miles,23 cents- medical/moving miles and 14 cents for charitable mileage (no change) Education Benefits: AGI increased for Life Time Learning Credit No change in AGI for American Opportunity Credit Student loan interest maximum deduction-no change Long Term Care premium deduction as a medical expense-increased 4

EXPIRED TAX BREAKS FACE ANOTHER NAIL BITER THIS YEAR This years tax extender package is virtually identical as the ‘extenders’ finally passed late last December or was it the beginning of January 2015? These have all been renewed at least once and some have been extended up to 16 times! 5

L EGISLATION THAT EXPIRED MIDNIGHT 12/31/2014 THAT MAY AFFECT MANY OF AARP AND VITA CLIENTS EDUCATOR EXPENSES ( ADJUSTMENT) TUITION AND FEES DEDUCTION (ADJUSTMENT) STATE AND LOCAL GENERAL SALES TAX (SCH A) MORTGAGE INSURANCE PREMIUM ( SCH A) RESIDENTIAL ENERGY CREDITS (NON REFUNDABLE) CANCELLATION OF DEBT-PRINCIPAL RESIDENCE QUALIFIED CHARITABLE DISTRIBUTION ( QCD) 6

When will we know that some or all of the extenders will be resurrected? Stay tuned…. 7

CHARITABLE CONTRIBUTIONS Reminders: Beware ! non profits are not necessarily charitable organizations Fund raising tickets,drawings, lottery tickets, raffle tickets, bingo games, etc are not deductible- No receipts, no letters-no deduction Special legislation: The Slain Officer Family Support Act of This Act allows cash, PayPal or credit/debit card donations to charitable organizations that can be EARMARKED to go to provide assistance to the families of New York Police Department Detectives Wenjian Liu and Rafael Ramos. Donations can only be made on or after 1/01/2015 and on or before April 15,2015 Taxpayer can claim such contributions on Schedule A of their 2014 or 2015 tax return Cash contributions 8

Gambling gains and losses Growing popularity in fantasy sports sites Winnings taxable Company issues a 1099-MISC if net profits* of more than $600. Company will send winners a W-9-asking for Social Security Number If your winnings paid through PAYPAL, you may get a 1099-K if you receive more than $20,000 or have more than 200 transactions Report on line 21 of 1040 ‘other income’. source: sports-winnings-are-taxable.html (Nov 26,2015) 9

IRA ROLLOVERS-NEW LAW Starting in 2015 the IRS is limiting nontaxable IRA rollovers to one every 12 months regardless of how many IRA accounts you have. people were taking IRA distributions and putting money back within 60 days and in effect taking short tern loans. Apparently this was a bad thing  trustee to trustee transfers are not limited Penalties if you get caught: your ordinary income tax rate, plus 10% penalty if it was an early withdrawal and a potential 6% excise tax if the rollover exceeds their annual IRA contribution limit 10

THANK YOU 11