You can begin getting Social Security retirement benefits as early as age 62. But this can reduce your benefits by as much as 30 percent below what you would get if you waited to retire until your full retirement age. If you wait until your full retirement age (66 for most people), you will get your full benefit. You also can wait until age 70 to start your benefits. Then, we will increase your benefit because you earned “delayed retirement credits.”
Beginning on Jan. 1, 2015, the standard mileage rates for the use of a car, van, pickup or panel truck will be:
- 5 cents per mile for business miles driven, up from 56 cents in 2014
- 23 cents per mile driven for medical or moving purposes, down half a cent from 2014
- 14 cents per mile driven in service of charitable organizations
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile, including depreciation, insurance, repairs, tires, maintenance, gas and oil. The rate for medical and moving purposes is based on the variable costs, such as gas and oil. The charitable rate is set by law.
Taxpayers always have the option of claiming deductions based on the actual costs of using a vehicle rather than the standard mileage rates.
If you don’t have your W-2 and 1099 forms, you can’t do your taxes. Put them where you can find them. And keep good records of your deductions. If you keep good records, you won’t overpay, and you’ll be able to answer any questions from the Internal Revenue Service easily.
I am a company driver. What is deductible when I’m on the road?
While self-employed individuals can generally deduct any expenses incurred to earn their income, company drivers are limited to non-reimbursed expenses required by their employer. You are entitled to per diem for overnights and motel expenses. A good rule to follow for deductions would be any expenses incurred that are necessary or required in the performance of your job and/or operation of the truck but are not reimbursed by your company, such as uniforms, gloves, logbooks, maps, cell phone, CB, tools, Windex, paper towels, showers, etc. Remember, as a company driver, these deductions are only available if you itemize and are not available if you take the standard deduction.
What is the per diem rate?
The Per Diem rate for meals in 2015 was 80% of $59 until September 30, 2015 then the rate changed to $63 effective October 1, 2015
The per diem rate for meals in 2014 was 80% of $59 per day.
The per diem rate for meals in 2013 was 80% of $59 per day.
The per diem rate for meals in 2012 was 80% of $59 per day.
The per diem rate for meals in 2011 was 80% of $59 per day.
The per diem rate for meals in 2010 was 80% of $59 per day.
The per diem rate for meals in 2009 was 80% of $52 per day.
The per diem rate for meals in 2008 was 80% of $52 per day.
The per diem rate for meals in 2007 was 75% of $52 per day.
The per diem rate for meals when in Canada is 80% of $65 per day and effective October 1, 2015 the rate changes to $68
Per Diem can only be taken when the driver spends the night away from home
Roth and Traditional IRA Contribution limits for 2014 incomes taxes are $5500. If you are age 50 or over the limit is $6500. If attained age 70 ½ during 2014 you can no longer make traditional IRA contributions. However,you can still contribute to a Roth IRA.
Company drivers can deduct as an itemized deduction, unreimbursed business expenses incurred in connection with driving for your employer that are required by your employer. They include per diem, communication services, tolls, work boots etc. Make sure your company does not have a reimbursement plan.
|
CHARITABLE CONTRIBUTION
If you are going to make a donation to a charity do so before the end of the year. It could lower your taxes. You must have a written record for all donations in order to claim a deduction. Contributions of $250 or more must have written acknowledgment from the organization. |
|
THE PREMIUM TAX CREDIT (HEALTH INSURANCE)
If you get your health insurance coverage from the Health Insurance Marketplace, check out your eligibility for the premium tax credit. Open enrollment begins November 15. |
|
SOCIAL SECURITY AND WORK
If you are at full retirement age and you are drawing social security you may increase your monthly check by continuing to work or by going back to work. Ask your local Social Security office the effects of working has on your account. |
|
PER DIEM
The Per Diem Rate for Transportation Industry on a Schedule C is $63 per day at 80% deductible. $66 Per Day outside of the US. |
|
SELF EMPLOYED 201C BUSINESS LOSS AND THE IRS
If you are self employed, and your business lost money, it is still essential to file a income tax return. By doing so, it will establish the loss on your records which could save you taxes in the future or get you a refund from prior returns. |
|
STOCKS AND RECORD HIGHS
If you own stocks personally, in your 401k or IRA, have your portfolio specialist review your holdings. Because of record highs in some sections, your portfolio may be in need of re-allocation. |
|
CASUALTY LOSSES
If you are unlucky to live in a federally declared disaster zone and suffered damages from a disaster, you may qualify for a casualty loss deduction on your income tax return. |
|
CUT YOUR CREDIT CARD INTEREST CHARGES
Transfer high balance credit cards to new credit cards with no interest for 12 months. They are out there. Do it now! |
|
EARNED INCOME TAX CREDIT
|
|
CHILD AND DEPENDENT CARE CREDIT (PAYING FOR SUMMER CAMPS)
Taxpayers can claim a non-refundable credit for dependent care expenses. Both the taxpayer (and spouse if married) must have earned income. Any paid care throughout the year qualifies. Be sure to get the social security or federal ID number of those providing the care. |
|
UNDERWATER BORROWERS (Trouble Refinancing?)
If you owe more than your home is worth or having trouble refinancing you may qualify for loan relief under the governments Home Affordable Refinance Program (HARP) www. harpprogram.org 888-666-5019 |
|
ALERT 201C PER DIEM ELECTRONIC LOGS
Some truckers say they can print the last six months of logs only. The IRS wants the full year in case of audit. Schedule your printing for June 30 and December 31 to obtain a full year of logs. |
|
TAXABILITY OF LOANS
Money received from loans or advances is not income. Consequently, the payments are not deductible except for the interest portion. Loans do not affect gain or loss upon the sale of equipment. |
|
TAX LIENS
If you have an IRS lien against you and it s hindering your financing abilities, filing past tax returns and/or creating a payment program may get the lien released. |
|
WHAT IF I CANNOT FILE ON TIME? IRA DEADLINE
If you are not able to file your tax return by April 15, you may choose to file an Application of Automatic Extension of Time, Form 4868, which will extend the time you have to file your return until October 15. By filing the extension, you will eliminate a late filing penalty. However, an extension is not an extension of time to pay taxes due. So if you are going to owe taxes, you should send in the money along with your extension. If your return is completed, file it even if you are unable to pay the tax due. The IRS will bill you. You can also set up your own payment plan by filing Form 9465. April 15th is the last day to contribute to your Traditional or Roth IRA regardless of extension. |
|
ROTH OR TRADITIONAL IRA
Be aware of your tax savings. If you are not saving enough income taxes with your traditional IRA contribution consider a Roth because qualified distributions from a Roth IRA are not taxable, while those of a Traditional IRA are. |
|
ROTH OR TRADITIONAL IRA<
Be aware of your tax savings. If you are not saving enough income taxes with your traditional IRA contribution consider a Roth because qualified distributions from a Roth IRA are not taxable, while those of a Traditional IRA are. |
|
TAX SCAM ALERT!
Fictitious IRS AGENTS are calling taxpayers saying they owe money and to pay immediately with debit cards or wire transfer. The callers give taxpayers a phony IRS ID and know the last 4 digits of your Social Security number. DON T FALL FOR THIS SCAM. The IRS will never call you unsolicited asking for money |
|
MISSING 1099
If you misplaced or never received a 1099 (earnings from your company) you are still responsible to report those earnings. You should ask your company or reconstruct your earnings adding up your deposits and / or comparing your expenses to your income. |
|
CREDITS
If preparing your own tax return or reviewing yours that someone else prepared, do not forget the following possible credits: Child Tax, Child and Dependents Care, Earned Income Tax, Adoption, Education, and Savers Credit. |
|
DEPENDENTS
Your spouse is never considered a dependent. A dependent is a Qualifying Child or Relative with no residency requirements. All others, including Boyfriend, Girlfriend or Domestic Partner can be claimed if they live with the taxpayer for an entire year. In addition, a dependent must meet the other four tests (gross income, support, citizenship, joint return). |