Federal Tax Info - 2014 to 2017 (Ver. 1)

Federal Tax Info - 2014 to 2017 (Ver. 1)

• To reduce taxable income, taxpayers can choose between itemizing tax deductions (which requires accurate record-keeping and documentation) or taking the standard deduction.  The standard deduction is a fixed amount that reduces the amount of money on which taxpayers calculate tax to the federal government. Generally, it's better to itemize if you can show that you have more itemized deductions than the amount of the standard deduction.  Itemized deductions include:

• mortgage interest

• property taxes

• state income tax

• medical expenses

• charitable donations

• IRS Publication 501 outlines each year’s standard deduction amounts. There are circumstances where increases can be made to the standard deduction.  For example, if you are 65 or older, or blind, the standard deduction increases. 

• The personal exemption is another deduction from your income that you can take for yourself, spouse and for any dependents.
• The information contained in this presentation is current as of the date it was presented. It should not be considered official guidance.

Federal Tax Info

Source: IRC, Rev Proc's, Bulletins, Notices & Announcements

Who Must File?	2014	2015	2016	2017	2018	2019
Filing Status/Age Gross Income at least:
Single-Under 65	10,150	10,300	10,350	10,400
Single-65 or older	11,700	11,850	11,900	11,950
MfJ - Under 65 (both spouses)	20,300	20,600	20,700	20,800
MfJ - 65 or older (one spouse)	21,500	21,850	21,950	22,050
MfJ - 65 or older (both spouses)	22,700	23,100	23,200	23,300
MfS - Any age	3,950	4,000	4,050	4,050
HofH - Under 65	13,050	13,250	13,350	13,400
HofH - 65 or older	14,600	14,800	14,900	14,950
QW - Under 65	16,350	16,600	16,650	16,750
QW - 65 or older	17,550	17,850	17,900	18,000
Standard deduction/ Personal exemption	2014	2015	2016	2017	2018	2019
Standard Deduction:
Single	6,200	6,300	6,300	6,350
MfJ/QW	12,400	12,600	12,600	12,700
MfS	6,200	6,300	6,300	6,350
HofH	9,100	9,250	9,300	9,350
AGI Pease max limit 80%   MfS    Single    HofH    MfJ/QW	152,525 254,200 279,650 305,050	154,950 258,250 284,050 309,900	155,650 259,400 285,350 311,300	156,900 261,500 287,650 313,800
Add'l standard deduction allowed for taxpayer blind or age 65 or older at end of tax year:    MfJ/QW/MfS: married  Single/HofH: unmarried	1,200 1,550	1,250 1,550	1,250 1,550	1,250 1,550
Child Tax Credit: per child under age 17 (Max refundable: 3 kids) Phaseout begins @MAGI   Single/HofH/QW   MfJ   MfS	1,000 75,000 110,000 55,000	1,000 75,000 110,000 55,000	1,000 75,000 110,000 55,000	1,000 75,000 110,000 55,000
Nondiscrimination Compensation Limits:  Highly Comp EE  Key EE in top-heavy plan  Qualified Plan  Defined Benefit plan	115,000 170,000 260,000 210,000	120,000 170,000 265,000 210,000	120,000 170,000 265,000 210,000	120,000 175,000 270,000 215,000
Dependent Standard Deduction: (when dependent claimed on another person's tax return)      Greater of   OR Dependent's earned       income plus	1,000  350	1,050  350	1,050  350	1,050 350
Personal Exemption	3,950	4,000	4,050	4,050
Personal Exemption: PEP Phaseout: 2% for every $2,500 over  AGI begins @   MfS AGI    Single AGI    HofH AGI    MfJ/QW AGI	152,525 254,200 279,650 305,050	154,950 258,250 284,050 309,900	155,650 259,400 285,350 311,300	156,900 261,500 287,650 313,800
Foreign Income exclusion Max housing exp @30%  Housing exclusion @14%  "Average annual net income tax" imposed for 5 taxable years preceding date of loss of US citizenship (or cessation of long-term permanent residency) for individual to be a “covered expatriate” under §877A(g)(1)	99,200 29,760 13,888 157,000	100,800 30,240 14,112 160,000	101,300 30,390 14,182 161,000	102,100 30,630 14,294 162,000
Earned Income  Tax Credit	2014	2015	2016	2017	2018	2019
EITC is Zero @ AGI Married filing Joint: with 3+ children with 2 children with 1 child with no children	52,427 49,186 43,941 20,020	53,267 49,974 44,651 20,330	53,505 50,198 44,846 20,430	53,930 50,597 45,207 20,600
EITC is zero @ AGI Single/QW/HofH with 3+ children with 2 children with 1 child with no children	46,997 43,756 38,511 14,590	47,747 44,454 39,131 14,820	47,955 44,648 39,296 14,880	48,340 45,007 39,617 15,010
EITC max credit with 3+ children with 2 children with 1 child with no children	6,143 5,460 3,305 496	6,242 5,548 3,359 503	6,269 5,572 3,373 506	6,318 5,616 3,400 510
Gift & Estate	2014	2015	2016	2017	2018	2019
Personal gift & estate exemption: Married couple: (Portability between  spouses: DSUEA) (TRA2010)	5.34M 10.68M	5.43M 10.86M	5.45M 10.90M	5.49M 10.98M
GST tax exemption (No DSUEA portability)	5.34M	5.43M	5.45M	5.49M
Lifetime Gift-tax  exemption	5.34M	5.43M	5.45M	5.49M
Estate/GST tax max/top tax rate:   Gift tax  max/top tax rate:	40% 40%	40% 40%	40% 40%	40% 40%
Special use valuation limit (qualified real property in decedent's gross estate): §2032A	1,090K	1,100K	1,100K	1,120K
Annual Exclusion:   Gift tax exclusion §2503   Gift tax exclusion non-citizen spouse §2523(i)	14,000 145,000	14,000 147,000	14,000 148,000	14,000 149,000
Mileage Rates	2014	2015	2016	2017	2018	2019
Standard Mileage Rates (cents/mile)  Mileage Tracking
Business (gas & oil, insurance, repairs, tires,maintenance,  depreciation)	56	57.5	54	53.5	*	*
Depreciation  (component)	22	24	24	25	*	*
Medical & moving	23.5	23	19	17	*	*
Charitable	14	14	14	14	*	*
Lease inclusion table when FMV over   Automobile   Truck/Van	18,500 19,000	17,500 18,500	19,000 19,500	19,000 19,500	* *	* *
Alternative Min Tax	2014	2015	2016	2017	2018	2019
AMT Exemption:   MfJ/QW   Single/HofH   MfS   Estates & Trusts	82,100 52,800 41,050 23,500	83,400 53,600 41,700 23,800	83,800 53,900 41,900 23,900	84,500 54,300 42,250 24,100
AMT Exemption Phaseout: Reduced by 25% over AMTI, begins @   MfJ/QW    Single/HofH   MfS    Estates & Trusts	156,500 117,300 78,250 78,250	158,900 119,200 79,450 79,450	159,700 119,700 79,850 79,850	160,900 120,700 80,450 80,450
AMT tax rate (low 26%/high 28%) 28% hi-rate begins @
MfJ/QW/Estates&Trusts	182,500	185,400	186,300	187,800
Single/HofH	182,500	185,400	186,300	187,800
MfS	91,250	92,700	93,150	93,900
Education Provisions	2014	2015	2016	2017	2018	2019
Education Provisions  (only one education  benefit for same  qualifying expense)
American Opportunity  (modified HOPE) credit* (1st 4-years of college) (40% refundable: $1,000) Phaseout @MAGI   Single/HofH/QW begins   Single/HofH/QW ends   MfJ begins    MfJ ends    MfS	2,500  80,000 90,000 160,000 180,000 -0-	2,500  80,000 90,000 160,000 180,000 -0-	2,500  80,000 90,000 160,000 180,000 -0-	2,500 80,000 90,000 160,000 180,000 -0-
Lifetime Learning Credit** (20% of 1st $10K tuition) Phaseout begins @MAGI   Single/HofH/QW    MfJ   MfS	2,000 54,000 108,000 -0-	2,000 55,000 110,000 -0-	2,000 55,000 110,000 -0-	2,000 56,000 12,000 -0-
Tuition & fees** deduction: Phaseout begins @MAGI   Single/HofH/QW   MfJ	4,000 65,000 130,000	4,000 65,000 130,000	4,000 65,000 130,000	n/a n/a n/a
Student loan interest** deduction Phaseout begins @MAGI   Single/HofH/QW    MfJ    MfS	2,500  65,000 130,000 -0-	2,500  65,000 130,000 -0-	2,500  65,000 130,000 -0-	2,500 65,000 135,000 -0-
Coverdell ESA* (< age 18) annual contribution: (elementary, secondary, college)  Phaseout ends @MAGI   Single/HofH/QW   MfJ	2,000 110,000 220,000	2,000 110,000 220,000	2,000 110,000 220,000	2,000 110,000 220,000
§529 Annual limit/Donor*   Lump-sum §529-single   Lump-sum §529-joint ($300K lifetime) *per student | **per family	14,000  70,000  140,000	14,000  70,000  140,000	14,000  70,000  140,000	14,000 70,000 140,000
Depreciation/§179	2014	2015	2016	2017	2018	2019
Depreciation limits
1st year cap (New): Bonus Depr (Add'l 50%)       Automobiles       Trucks & Vans	11,160 11,460	11,160 11,460	11,160 11,560	11,160 11,560
1st year cap (Used): No Bonus (Standard)       Automobiles       Trucks & Vans	3,160 3,460	3,160 3,460	3,160 3,560	3,160 3,560
2nd year limit       Automobiles       Trucks & Vans	5,100 5,500	5,100 5,600	5,100 5,700	5,100 5,700
3rd year limit       Automobiles        Trucks & Vans	3,050 3,350	3,050 3,350	3,050 3,350	3,050 3,450
4th etc year limit       Automobiles       Trucks & Vans	1,875 1,975	1,875 1,975	1,875 2,075	1,875 2,075
Code §179 Vehicle Expensing - 1st year
SUV limit (per vehicle) for Trucks & Vans having loaded GVW  over 6,000 lbs. (Plus  50% or 100% additional  1st year Bonus  depreciation. Subject  to depreciation dollar  limits within MACRS  allowable percentages)	25,000	25,000	25,000	25,000
Code §179
Annual Expense Limit	500K	500K	500K	510K
Property cost limit prior to phase-out: (Phase-out begins when §179 property exceeds)	2M	2M	2M	2.03M
Capital gains rates	2014	2015	2016	2017	2018	2019
Long term Capital Gains & Qualifying Dividends Tax Rate: plus 3.8% Medicare  surtax (NIIT) on lessor of  Net Investment Income or AGI  >$250K MfJ/QW  >$200K Single/HofH  >$125K MfS Estates&Trusts @ 3.8%   >Undistributed NII ATRA2012 IRC §1411	3.8% 12,150	3.8% 12,300	3.8% 12,400	3.8% 12,500
For taxpayers in  10% - 15% bracket 25% - 35% bracket  39.6% bracket	-0-% 15% 23.8%	-0-% 15% 23.8%	-0-% 15% 23.8%	-0-% 15% 23.8%
20% Cap Gain tax rate begins @ AGI   >$450K+COLA MfJ/QW   >$400K+COLA Single   MfJ/QW    HofH   Single   MfS    Estates & Trusts UNII	457,600 432,200 406,750 228,800 12,150	464,850 439,000 413,200  232,425 12,300	466,950 441,000 415,050 233,475 12,400	470,700 444,550 418,400 235,350 12,500
Tax on §1250 gain depreciation recapture (buildings) TRA1997	25%	25%	25%	25%
Capital gains tax rate on collectibles: (gold, coins, art, antiques) & Qualified Small Business Stock §1202	28%	28%	28%	28%
Retirement	2014	2015	2016	2017	2018	2019
401(k), 403(b), 457 plans Annuities, SARSEP  Annual Elective  Deferral Limit:
Under age 50	17,500	18,000	18,000	18,000
Age 50+ catch-up	5,500	6,000	6,000	6,000
Defined Contribution Plan  SEP/Profit-sharing  contribution limit:    Age 50+ catch-up limited to 25% of comp   SEP Min comp amount:   Solo 401(k):   Age 50+ catch-up limited to 100% of comp	52,000 5,500 550 52,000 5,500	53,000 6,000 600 53,000 6,000	53,000 6,000 600 53,000 6,000	54,000 6,000 600 54,000 6,000
Saver's credit   Individual   Couples  Phaseout AGI ends @   Single/MfS     HofH     MfJ	1,000 2,000 30,000 45,000 60,000	1,000 2,000 30,500 45,750 61,000	1,000 2,000 30,750 46,125 61,500	2,000 4,000 31,000 46,500 62,000
SIMPLE & SIMPLE 401(k) §408(p)(2)(e)
Under age 50   Age 50 catch-up	12,000 2,500	12,500 3,000	12,500 3,000	12,500 3,000
IRA*/Roth Contribution limits (not to exceed income)   Under Age 50   Age 50+ catch-up	5,500 1,000	5,500 1,000	5,500 1,000	5,500 1,000
Traditional IRA:   TP "covered" at work: AGI Phaseout begins @   Single/HofH    MfJ/QW   MfS  TP "not covered" at work/ Spouse "covered" at work: AGI Phaseout begins @    MfJ    *Fully deductible, regardless of income, if not covered by employer plan at work	60,000 96,000 -0-  181,000	61,000 98,000 -0-  183,000	61,000 98,000 -0-  184,000	62,000 99,000 -0- 186,000
Roth Phaseout begins @   Single/HofH AGI   MfJ/QW AGI   MfS AGI	114,000 181,000 -0-	116,000 183,000 -0-	117,000 184,000 -0-	118,000 186,000 -0-
Social Security	2014	2015	2016	2017	2018	2019
Social Security items: Taxable when Modified Adjusted Gross Income (MAGI) is more than:
50% Taxable
Single	25,000	25,000	25,000	25,000
Married	32,000	32,000	32,000	32,000
85% Taxable
Single	34,000	34,000	34,000	34,000
Married	44,000	44,000	44,000	44,000
Benefits Planner
Quarter of Coverage: Earnings needed  to earn one Social  Security credit	1,200	1,220	1,260	1,300
Max earnings: Social Security recipients
Benefits witholding: Prior to FRA (Age 62-65) ($1/$2 earnings above)	15,480	15,720	15,720	16,920
Benefits witholding: Year of FRA (Age 66) ($1/$3 earnings above)	41,400	41,880	41,880	44,880
After Full  Retirement age	no limit	no limit	no limit	no limit
Max Monthly SS Benefit:    Worker retiring @ full        retirement age  Social Security Benefits	2,642	2,663	2,639	2,687
Max earnings  subject to  Social Security tax	117,000	118,500	118,500	127,200
Max earnings subject to Medicare tax plus 0.9% Medicare  surtax withheld on taxable income  >$250K MfJ  >$200K Single/HofH  >$125 MfS Obama Care	no limit	no limit	no limit	no limit
Medicare Part B Base-Premium/year Yearly income <$85K (Dr. visits, surgeries, lab  tests,ambulance,supplies)	1,260 105/mo	1,260 105/mo	1,464 122/mo	1,608 134/mo
General deductions, exclusions & Health items	2014	2015	2016	2017	2018	2019
Adoption credit:  (non-refundable) Phaseout MAGI begins@ Phaseout MAGI ends@	13,190 197,880 237,880	13,400 201,010 241,010	13,460 201,920 241,920	13,570 203,540 243,540
Nanny tax threshhold: Household employee (Schedule H)  Amount FICA begins  Amount FUTA begins	1,900 1,000	1,900 1,000	2,000 1,000	2,000 1,000
"Kiddie Tax" threshold: (Kids under 19) Kid's unearned income over earnings limit taxed @ parent's highest rate	2,000	2,100	2,100	2,100
Attorney fee award limitation (per hour) §7430(c)(1)(B)(iii)	190	200	200	200
Commuter fringe/month    (vanpool, bus, ferry,     rail & all public trans) Parking fringe	130 250	250 250	255 255	255 255
ISRP (No MEC?)    ISRP Higher of:  % of Household Income OR flat fee/Adult       flat fee/Child under 18 Max flat fee per family  (Max cannot exceed Nat'l Avg Marketplace Bronze Plan annual premium)	1%  95 47.50 285	2%  325 162.50 975	2.5%  695 347.50 2,085	2.5% 695 347.50 2,085
Medical Savings Account   Max % of deductible-self  HDHP Max Deductible  HDHP Min Deductible  Max out-of-pocket  Max % of deductible-family  HDHP Max Deductible  HDHP Min Deductible  Max out-of-pocket	65% 3,250 2,200 4,350  75% 6,550 4,350 8,000	65% 3,300 2,200 4,450  75% 6,650 4,450 8,150	65% 3,350 2,250 4,450 75% 6,700 4,450 8,150	65% 3,350 2,250 4,500 75% 6,750 4,500 8,250
HSA Contribution Limit 100% Deductible   Self-only    Family    Catch-up (55+)	3,300 6,550 1,000	3,350 6,650 1,000	3,350 6,750 1,000	3,400 6,750 1,000
HDHP Min deductible:    Self-only   Family	1,250 2,500	1,300 2,600	1,300 2,600	1,300 2,600
HDHP Max out-of-pocket     Self-only   Family	6,350 12,700	6,450 12,900	6,550 13,100	6,550 13,100
LTC Premium deduction limit:   Age 40 or less   Age 41 to 50   Age 51 to 60   Age 61 to 70   Age over 70	370 700 1,400 3,720 4,660	380 710 1,430 3,800 4,750	390 730 1,460 3,900 4,870	410 770 1,530 4,090 5,110
LTC Benefit:    Max daily excludable	330	330	340	360
Flex-Spending Account Cafeteria Plan §125:    Max excludable ($500 max unused  annual carryover)	2,500	2,550	2,550	2,600
Property exempt from levy: §6334(a)(2)  Furniture personal    Tools/Books	8,940 4,470	9,080 4,540	9,120 4,560	9,200 4,600
Annual Hi/Low  Per Diem Rates §274(d) Hi-cost locality Lodging  Meals & Incidentals   Max high-cost rate	186 65 251	194 65 259	207 68 275	214 68 282
Low-cost locality Lodging  Meals & Incidentals    Max low-cost rate	118 52 170	120 52 172	128 57 185	132 57 189

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Please copy & distribute freely
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This information is provided for general information and educational purposes only.
It is based upon publicly available information from sources believed to be reliable.
No assurance to accuracy or completeness can be made,
 and information may change at any time and without notice.

myRA

myRA

President Barack Obama signed a presidential memorandum in January 2014 directing US Dept of Treasury to create "myRA".  myRA is to be a "a new simple, safe and affordable “starter” retirement savings account that will be initially offered through employers and will ultimately help low and moderate income Americans save for retirement".

• Beginning in late 2014, with this retirement savings account  individuals will be able to open accounts and begin contributing to them every payday. 
• myRAs will be initially offered through employers, balances will never go down, and there will be no fees. 
• myRAs will hold a new retirement savings bond that will be backed by the US Treasury.

The key features of myRA include:

• No cost to open an account.
• Contribute to savings through regular payroll direct deposit.
• Individual decides how much to contribute every payday ($50, $25, $5 – any amount!)
• No fees.
• myRAs will earn interest at the same variable rate as the Government Securities Investment Fund in the Thrift Savings Plan for federal employees.
• myRAs will not be limited to one employer  – the account will be portable.
• myRA contributions can be withdrawn tax free.
• Earnings can be withdrawn tax free after five years and the saver is 59½.
• Account holders can build savings for 30 years or until their myRA reaches $15,000 – whichever comes first. 
• After that, myRA balances will transfer to private-sector Roth IRAs.

References:

myra.treasury.gov/

Miracle Green Drink

Miracle Green Drink
This drink’s preparation is easy and quick. Nutritionists recommend that this drink is the first thing we enter in the morning, before breakfast and/or coffee.

Ingredients needed:
1 radish
2 stalks of celery
2 beetroots
3 leaves of kale
3 carrots
Handful of spinach
Half a cabbage
Half a cup of parsley
Half a red onion
2 cloves of garlic
Method of preparation:

Put all of the ingredients into a blender and mix them. Mix until you get homogeneous thick pulp. Add some water into the pulp and drink half a glass right after you wake up on an empty stomach.

See more at Healthy Food Star  

IRS Announces 2015 Pension Plan Limitations

IRS Announces 2015 Pension Plan Limitations
The Internal Revenue Service recently announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2015. Many of the pension plan limitations will change for 2015 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. However, other limitations will remain unchanged because the increase in the index did not meet the statutory thresholds that trigger their adjustment. Highlights include the following:

• The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased from $17,500 to $18,000.
• The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased from $5,500 to $6,000.
• The limit on annual contributions to an Individual Retirement Arrangement (IRA) remains unchanged at $5,500. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.
• The deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $61,000 and $71,000, up from $60,000 and $70,000 in 2014. For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $98,000 to $118,000, up from $96,000 to $116,000. For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple's income is between $183,000 and $193,000, up from $181,000 and $191,000. For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
• The AGI phase-out range for taxpayers making contributions to a Roth IRA is $183,000 to $193,000 for married couples filing jointly, up from $181,000 to $191,000 in 2014. For singles and heads of household, the income phase-out range is $116,000 to $131,000, up from $114,000 to $129,000. For a married individual filing a separate return, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
• The AGI limit for the saver's credit (also known as the retirement savings contribution credit) for low- and moderate-income workers is $61,000 for married couples filing jointly, up from $60,000 in 2014; $45,750 for heads of household, up from $45,000; and $30,500 for married individuals filing separately and for singles, up from $30,000. 
• Breaking News: 2015 Pension Contribution Limits As the end of the year rolls around, if you have not already done so, now is the time to plan for contributions into your retirement accounts in 2015. While Traditional IRA and Roth IRA plan limits are unchanged versus 2014, please note the contribution increases in 401(k), 403(b), 457 and SIMPLE IRAs.

Retirement Program	Year 2015	Year 2014	Change	Catch-up Age 50+
IRA Traditional	5,500	5,500	None	Add 1,000
IRA Roth	5,500	5,500	None	Add 1,000
IRA Simple	12,500	12,000	+500	Add 3,000 (Up 500)
401K, 403B, 457 Plans	18,000	17,500	+500	Add 6,000 (Up 500)

• 2014 Planning Note: Remember you have until April 15th, 2015 to make contributions to your Roth or Traditional IRA for the 2014 tax year.
• Don't forget to take advantage of any matching programs offered by your employer as you review your various funding levels.
• For more information click here.

Implementation of Affordable Care Act (ACA)

Implementation of Affordable Care Act (ACA)
Under the Affordable Care Act (ACA), both:

• health insurance providers and 
• "large employers" who have: 
• 50 or more full-time equivalent employees 
• FTE = 30 hours per week or 130 hours per month 

have new reporting requirements to ensure they are meeting health care coverage obligations. The information reporting obligations are meant to provide policy details for each person who is provided with coverage to the IRS. At the end of the year, taxpayers and their dependents must be able to prove that they were participating in a qualified health plan, thereby producing a need for third-party tax information reporting.

IRC §6056 requires employers to report to the IRS information about their compliance with the employer shared responsibility provisions, including the type of health care coverage they offer to their employees. In addition, employers are required to furnish related benefit statements to employees to assist them in determining whether they can claim a premium tax credit on their tax return.

IRS Form 1095-C (Employee statement) and a Form 1094-C (Transmittal) are the proposed designated forms to be used for §6056 reporting. Use the following links to view a draft of each of these forms:
Form 1095-C
Form 1094-C

New Form 1099 draft instructions include FATCA update

New Form 1099 draft instructions include FATCA update
The IRS recently released draft instructions for several 1099 forms, which include a change related to the Foreign Account Tax Compliance Act (FATCA). The update was made for Form 1099-MISC, Miscellaneous Income; Form 1099-DIV, Dividends and Distributions; Form 1099-OID, Original Issue Discount; and Form 1099-INT, Interest Income.

The change is the addition of a checkbox for foreign financial institutions (FFIs). It refers to the FFIs chapter 4 filing requirements.

"Beginning in 2014, an FFI with a chapter 4 requirement to report a US account maintained by the FFI that is held by a specified US person may satisfy this requirement by reporting on Form(s)1099 under the election described in Regulations section 1.1471-4(d)(5)(i)(A)," the instructions read.

The instructions went on to say US payors can fulfill their chapter 4 obligations using the check box.

Bibliography: convey.com, irs.gov

Tax Penalty Abatement Letter Request & Form 843

Tax Penalty Abatement Letter Request & Form 843
Below is a sample penalty abatement letter request to the IRS. It is intended to be used as a guide and is for information purposes only when trying to abate tax penalties.

Date:  September 20, 20xx

To:  IRS (Penalty Abatement)
(address given on notice of tax amount due)

From:  Jane Doe
123 Any Street
Any City, State 99999
SSN: (***-**-****)

Re: Request for Penalty Abatement

Dear Sir:

I am writing to request an abatement of penalty in the amount of $(amount) as assessed in the attached notice that is dated ____/____/____.

The reason why I _________(pick one)

• Paid late 
• Filed late 
• Failed to report income 

was because I ____________ (pick one) 

• Had a serious medical condition 
• House burned down 
• Documents were stolen 
• Death of a close family member 
• ...or any other reason that prevented you from complying with the IRS requirements 

Please find the enclosed (documents that support my claim) 

• Death notice of a family member 
• Letter from a doctor stating the conditions of your illness that prevented you from filing or paying 
• Picture of house burned down in fire 
• Insurance notice of theft of private property and documents 
• ...or any proof you can enclose (a copy of) to prove statement above 

Please consider my request for abatement of penalty based upon reasonable cause. If there are any questions or further information required, I can be reached at (telephone number) from 9am to 6pm. I have enclosed a payment in the amount of taxes owed, net of the penalty portion.

Sincerely,
/s/ Jane Doe

Editorial Note:

• If you have the funds to pay, you should pay the tax owed. 
• If you do not have the funds, you can apply for an Installment Agreement to pay back taxes owed over time or file an Offer-in-Compromise based upon reasonable collection potential (RCP).
• When enclosing your documents, be sure to keep copies for yourself.
• Review the penalty to determine:
• how and why it was assessed (late-file, late-pay and/or underreporting penalties), 
• what happened to create a situation for the taxpayer (TP) where a penalty was assessed (why the TP didn’t file or pay), and 
• whether the penalty abatement program would benefit the TP, and
• should TP apply for penalty abatement?
• For example, a TP who is Currently-Not-Collectible (CNC) would not benefit from penalty abatement; although, a first time abatement may be beneficial for someone who qualifies for CNC and has maxed out the 25% failure to pay penalty on their oldest tax year. 
• Abatements can be requested and authorized over the phone with ACS.
• More difficult to obtain are Reasonable Cause abatements. These abatements generally must be submitted on Form 843 and have well established reasonable cause criteria that must be met to qualify. File for these abatements at the end once a collection status has been resolved for the client.
• It will take a few months to get a response from the IRS, and whether the abatement is possible.  
• Reason for an abatement request cannot be illegal or a ‘protester’ argument. 
• When filing Form 843, know the IRS is the determining party. The TP will receive notice of acceptance or denial within three to six months. Any denial has appeal rights, so if the TP disagrees, the TP can respond to the IRS denial accordingly.
• IRM §20.1 contains the Penalty Abatement Handbook, which includes the reasonable cause standards.

Enc.

K-12 Diverse Abilities Curriculum

K-12 Diverse Abilities Curriculum

Learning Disabilities Checklists and Worksheets
http://www.ncld.org/learning-disabilities-resources/checklists-worksheets

Family Health Guide to Learning Disabilities
https://www.kanetix.ca/family-health-guide-to-learning-disabilities

Coping with Disabilities - National Caregivers Library
http://www.caregiverslibrary.org/caregivers-resources/grp-disabilities/coping-with-disabilities-article.aspx

Benefits for People with Disabilities
http://www.ssa.gov/disability/

Medicare and Social Security Disability: Benefits for Disabled Individuals
http://www.planprescriber.com/medicare-insurance-news/social-security-disability/

American Association on Health and Disability
http://www.aahd.us/

Local Doctor Finder: Search by Disability
http://www.zocdoc.com/procedures

I Can Do It, You Can Do It!: President's Council on Fitness, Sports & Nutrition
http://www.fitness.gov/participate-in-programs/i-can-do-it-you-can-do-it/

ADA Accommodation for Swimming Pools
http://blog.intheswim.com/swimming-pool-lifts-and-the-ada-pool-lift-law/

Siblings with Disabilities
http://www.parentcenterhub.org/repository/siblings/

Disability Home Accommodation Cost Guide
http://www.homeadvisor.com/cost/disability-accommodation/

Disability and Health
http://www.cdc.gov/ncbddd/disabilityandhealth/people.html

Fire Safety & Disabilities Guide
http://www.improvenet.com/a/fire-safety-and-disabilities-guide

Source: Rebecca Muller

r.muller@educatorlabs.org
EducatorLabs.org | Cultivating. Connecting. Curating.
EducatorLabs | 2054 Kildaire Farm Rd. #204 | Cary, NC | 27518

The Seven Spiritual Laws of Success – A Practical Guide to the Fulfillment of Your Dreams :: Author: Deepak Chopra

The Seven Spiritual Laws of Success – A Practical Guide to the Fulfillment of Your Dreams
Author: Deepak Chopra

Freely inspired in Hinduist and spiritualistic concepts, which preaches the idea that personal success is not the outcome of hard work, precise plans or a driving ambition, but rather of understanding our basic nature as human beings and how to follow the laws of nature. According to the book, when we comprehend and apply these laws in our lives, everything we want can be created, “because the same laws that nature uses to create a forest, a star, or a human body can also bring about the fulfillment of our deepest desires”.

1. The Law of Pure Potentiality: Take time to be silent, to just BE. Meditate for 30 minutes twice a day. Silently witness the intelligence within every living thing. Practice non-judgment.
2. The Law of Giving: Today, bring whoever you encounter a gift: a compliment or flower. Gratefully receive gifts. Keep wealth circulating by giving and receiving care, affection, appreciation and love.
3. The Law of Karma: Every action generates a force of energy that returns to us in like kind. Choosing actions that bring happiness and success to others ensures the flow of happiness and success to you.
4. The Law of Least Effort: Accept people, situations, and events as they occur. Take responsibility for your situation and for all events seen as problems. Relinquish the need to defend your point of view.
5. The Law of Intention and Desire: Inherent in every intention and desire is the mechanics for its fulfillment. Make a list of desires. Trust that when things don’t seem to go your way, there is a reason.
6. The Law of Detachment: Allow yourself and others the freedom to be who they are. Do not force solutions—allow solutions to spontaneously emerge. Uncertainty is essential, and your path to freedom.
7. The Law of Dharma: Seek your higher Self. Discover your unique talents. Ask yourself how you are best suited to serve humanity. Using your unique talents and serving others brings unlimited bliss and abundance