January 2016


 
Happy New Year friends and a big THANK YOU to everyone who contributed to our success in 2015.   It's that time again to prepare your tax returns,  If you moved any employee's last year, you might want to share this newsletter with them to remind them of some expenses that can be deducted. 
 
"As a taxpayer, you are required to be fully in compliance with the United States Tax Code, which is currently the size and weight of the Budweiser Clydesdales." -- Dave Barry
 

Warm Regards,
Susan 


Worldwide ERC's 2015 FilingTax Tips for Transferees  
 
 
The following are a list of moving expenses that are deductible and sometimes overlooked:
  • Tips to the moving van driver or helpers.
  •  Mileage for driving second or third cars to the new location (in addition to the first car). The deduction for 2015 is 23 cents per mile. (The deduction will decrease to 19 cents per mile in 2016.)
  •  Lodging expenses in the departure location for one night after the household goods are packed, and one night in the new location on the day of arrival.
  •  Moving household goods from a location other than your main home, up to what it would have cost to move them from the main home.
  •  Storage of household goods for up to 30 days, including the cost of moving the goods into and out of storage even if the goods are in storage more than 30 days.
  •  Expenses not reimbursed by your employer, such as extra crating, shipment of unusual items, tips to van line staff, etc.
And remember, you don't have to itemize to deduct moving expenses.

Other filing tips
  •  If the seller of your new home agreed to pay part of your mortgage point, the IRS says you can deduct those points even though the seller paid them.
  • If you refinanced your mortgage, don't forget to deduct the entire remaining balance of points paid on the refinancing in the year you sell your home.
  • If the sale of your home was a "short sale", you may receive a Form 1099-C reporting any debt relief to the IRS.  No tax will be due as the provision in the tax code excusing the relief was extended through 2016.
  • If you paid a premium for mortgage insurance, you may be entitled to an itemized deduction as mortgage interest for the portion of the premium allocable to 2015.  However, no deduction if your adjusted gross income is more than $110,000.
This year's return will be due on Monday, April 18, 2016, because the normal due date of April 15 is a holiday in the District of Columbia. 

Need more details?  Give us a call at 800-598-8887
"I place economy among the first and most important virtues, and public debt as the greatest of dangers to be feared.

To preserve our independence, we must not let our rulers load us with perpetual debt.  If we run into such debts, we must be taxed in our meat and drink, in our necessities and in our comforts, in our labor and in our amusements.  If we can prevent the government from wasting the labor of the people, under the pretense of caring for them, they will be happy."
 
                                                                                   - Thomas Jefferson
 
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