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Individual Retirement Accounts, or IRAs, are important vehicles for you to save for retirement. If you have an IRA or plan to start one soon, there are a few key year-end rules that you should know. Here are the top year-end IRA reminders from the IRS:

• Know the contribution and deduction limits.  You can contribute up to a maximum of $5,500 ($6,500 if you are age 50 or older) to a traditional or Roth IRA. If you file a joint return, you and your spouse can each contribute to an IRA even if only one of you has taxable compensation. You have until April 18, 2016, to make an IRA contribution for 2015. In some cases, you may need to reduce your deduction for your traditional IRA contributions. This rule applies if you or your spouse has a retirement plan at work and your income is above a certain level.
• Avoid excess contributions.  If you contribute more than the IRA limits for 2015, you are subject to a six percent tax on the excess amount. The tax applies each year that the excess amounts remain in your account. You can avoid the tax if you withdraw the excess amounts from your account by the due date of your 2015 tax return (including extensions).
• Take required distributions.  If you’re at least age 70½, you must take a required minimum distribution, or RMD, from your traditional IRA. You are not required to take a RMD from your Roth IRA. You normally must take your RMD by Dec. 31, 2015. That deadline is April 1, 2016, if you turned 70½ in 2015. If you have more than one traditional IRA, you figure the RMD separately for each IRA. However, you can withdraw the total amount from one or more of them. If you don’t take your RMD on time you face a 50 percent excise tax on the RMD amount you failed to take out.
• IRA distributions may affect your premium tax credit. If you take a distribution from your IRA at the end of the year and expect to claim the PTC, you should exercise caution regarding the amount of the distribution.  Taxable distributions increase your household income, which can make you ineligible for the PTC.  You will become ineligible if the increase causes your household income for the year to be above 400 percent of the Federal poverty line for your family size. In this circumstance, you must repay the entire amount of any advance payments of the premium tax credit that were made to your health insurance provider on your behalf.

For help with any income tax question call one of our offices:
Plymouth 734.454.4100, Allen Park 313.388.7180,
Grayling 989.348.4055,  Livonia 734-462-6161,
Madison Heights 248.544.6160, Royal Oak 248.399.7331,
Saginaw 989.782.1985, or St. Clair Shores 313.371.6600

The Internal Revenue Service, the states and the tax industry urge you to be safe online and remind you to take important steps to help protect yourself against identity theft.

Taxes. Security. Together. Working in partnership with you, we can make a difference.

Scammers, hackers and identity thieves are looking to steal your personal information – and your money. But there are simple steps you can take to help protect yourself, like keeping your computer software up-to-date and giving out your personal information only when you have a good reason.

We all have a role to play to protect your tax account. There are just a few easy and practical steps you can take to protect yourself as you conduct your personal business online.

Here are some best practices you can follow to protect your tax and financial information:

1. Understand and Use Security Software.  Security software helps protect your computer against the digital threats which are prevalent online. Generally, your operating system will include security software or you can access free security software from well-known companies or Internet providers. Other options may have an annual licensing fee and offer more features. Essential tools include a firewall, virus/malware protection and file encryption if you keep sensitive financial/tax documents on your computer. Security suites often come with firewall, anti-virus and anti-spam, parental controls and privacy protection. File encryption to protect your saved documents may have to be purchased separately. Do not buy security software offered as an unexpected pop-up ad on your computer or email! It’s likely from a scammer.
2. Allow Security Software to Update Automatically. Set your security software to update automatically. Malware – malicious software – evolves constantly and your security software suite is updated routinely to keep pace.
3. Look for the “S” for encrypted “https” websites. When shopping or banking online, always look to see that the site uses encryption to protect your information. Look for https at the beginning of the web address. The “s” is for secure. Unencrypted sites begin with an http address. Additionally, make sure the https carries through on all pages, not just the sign-on page.
4. Use Strong Passwords. Use passwords of at least 10 to 12 characters, mixing letters, numbers and special characters. Don’t use your name, birthdate or common words. Don’t use the same password for several accounts. Keep your password list in a secure place or use a password manager. Don’t share your password with anyone. Calls, texts or emails pretending to be from legitimate companies or the IRS asking you to update your accounts or seeking personal financial information are generally scams.
5. Secure your wireless network.  A wireless network sends a signal through the air that allows you to connect to the Internet. If your home or business wi-fi is unsecured it also allows any computer within range to access your wireless and steal information from your computer. Criminals also can use your wireless to send spam or commit crimes that would be traced back to your account. Always encrypt your wireless. Generally, you must turn on this feature and create a password.
6. Be cautious when using public wireless networks. Public wi-fi hotspots are convenient but often not secure. Tax or financial Information you send though websites or mobile apps may be accessed by someone else. If a public Wi-Fi hotspot does not require a password, it probably is not secure. If you are transmitting sensitive information, look for the “s” in https in the website address to ensure that the information will be secure.
7. Avoid phishing attempts. Never reply to emails, texts or pop-up messages asking for your personal, tax or financial information. One common trick by criminals is to impersonate a business such as your financial institution, tax software provider or the IRS, asking you to update your account and providing a link. Never click on links even if they seem to be from organizations you trust. Go directly to the organization’s website. Legitimate businesses don’t ask you to send sensitive information through unsecured channels.

To learn additional steps you can take to protect your personal and financial data, visit Taxes. Security. Together. Also read Publication 4524, Security Awareness for Taxpayers.

For help with any income tax question call one of our offices:

Plymouth 734.454.4100,               Allen Park 313.388.7180,

Grayling 989.348.4055,     Madison Heights  248.544.6160,     Royal Oak 248.399.7331,

Saginaw 989.782.1985,          St. Clair Shores 313.371.6600

The U.S. Department of the Treasury created myRA (my Retirement Account), a new retirement account, to help people save for retirement. myRA is a simple, safe, and affordable way to take more control of your future. Here are the top questions employees have about myRA.

What is myRA?

myRA is a new type of Roth IRA* – a popular retirement savings tool – that has been specifically designed by the U.S. Treasury to address many of the most common barriers to saving, such as fees and minimum initial contributions. There is no cost to you to participate, and myRA carries no risk of losing money. The account stays with you when you change jobs, and if you have more than one job, you can contribute to it through multiple employers. myRA has no minimum contribution requirement, which means you can contribute the amount you choose.* And best of all, it’s easy to set up and manage.

Who can sign up for myRA?

myRA could be a good option if you don’t have access to a retirement savings plan through your job. myRA follows Roth IRA rules so it is generally available to anyone who earns an annual income of less than $129,000 a year for individuals and $191,000 for married couples filing jointly.* You can set up direct deposit into your myRA through your employer.

Are there any fees?

No. It costs nothing to open an account and there are no fees for the maintenance of the account. Best of all, you decide how much to save – as little as a few dollars a month up to $5,500 per year.* It’s up to you. And even saving a little each paycheck can really add up over time.

How do I open an account?

myRA makes it easy to sign up and start saving. You can sign up today at no cost – it takes only minutes. There are three simple steps:

1. Open your myRA online at myRA.treasury.gov
2. Give a direct deposit authorization form to your employer
3. Watch your savings grow – your contributions will be made automatically each payday.

For more information on myRA, you can visit myRA.treasury.gov.

For help with this or any income tax question call one of our offices:
Plymouth 734.454.4100,            Allen Park 313.388.7180,
Grayling 989.348.4055,         Madison Heights  248.544.6160,         Royal Oak 248.399.7331,
Saginaw 989.782.1985,         St. Clair Shores 313.371.6600

You could be throwing your money away if you haven’t taken steps to decrease your tax liability and spend down your flexible savings account.

Not to worry, we’ve got a few ideas that can help. Start now, and you’ll be in good shape come Dec. 31, the last day for most 2015 tax savings.

Go see a doctor. Hearing aids, eyeglasses, contacts, health insurance premiums and more are deductible as is medical mileage to doctors, hospitals and the pharmacy. If your spending equals more than 10 percent of your adjusted gross income, 7.5% if 65 or older, you may be eligible for a tax deduction. Use your flexible spending account to pay these bills. FSAs used to have a use it or lose it rule, but now companies can allow a $500 FSA rollover. Still, it might be best to use all your FSA money by year’s end to ensure that you don’t lose any.

Take stock of your stocks. Have the stock market highs and lows affected your portfolio? There’s still time to sell stocks or mutual funds and take the losses to offset your income.

Fix up your rental property. Make repairs to rental property before December 31 to reduce rental income when you file your tax return.

Donate. You can deduct contributions to qualified charities in the year you make them. So, gifts charged to your credit card before year end will count for 2015, even if you don’t pay the bill until 2016. Also, a check will count for 2015 as long as it goes into the mail in 2015. Don’t forget to clean out the garage and closets and make non-cash donations.

Check here for a list of IRS qualified charities.

If you miss the Dec. 31 deadline for tax savings, consider these:

Pay it forward. Payments made in the first 3 months of 2016 to a qualified educational institution can be used towards credit on your 2015 tax return with regards to the American Opportunity Credit, the Lifetime Learning Credit, and the Tuition & Fees Deduction.

Take two tax breaks in one. 18 or older? Not a dependent or full-time student? You could be eligible for the Saver’s Credit. The tax credit for low- to moderate-income employees allows you to save for retirement and get a credit for doing so. In short, you put money into an IRA and get your IRA deduction, then you also get a credit for your IRA contribution. IRA contributions for 2015 can be made until April 18, 2016.

For help with any income tax question call one of our offices:

Plymouth 734.454.4100,              Allen Park 313.388.7180,

Grayling 989.348.4055, Madison Heights  248.544.6160, Royal Oak 248.399.7331,

Saginaw 989.782.1985,         St. Clair Shores 313.371.6600

It’s not too early to start thinking about how you will file your tax return in early 2016. Filing electronically is the easiest way to file a complete and accurate tax return as the software guides you through the filing process. IRS e-file can also help with the health care law tax provisions, by walking you through the lines on the tax forms that relate to the Affordable Care Act.

The bottom line is that e-file is much easier than doing your taxes by hand and mailing paper tax forms. Electronic filing options include: free Volunteer Assistance, IRS Free File, commercial software, and professional assistance.

You may qualify to have your taxes filed through the IRS Volunteer Income Tax Assistance or Tax Counseling for the Elderly programs. In general, VITA offers free tax preparation and e-file if you earned $53,000 or less. TCE offers help primarily to people who are age 60 or older. You can e-file through IRS Free File, the free tax preparation and e-file program available only on IRS.gov. You can also buy commercial tax software to e-file your return yourself, or ask your tax preparer to e-file your tax return on your behalf.

IRS e-file meets strict security guidelines. It uses secure encryption technology to protect your tax return. The IRS has safely and securely processed more than 1.3 billion e-filed tax returns from individuals since the program began.

For help with your income taxes call one of our offices:

Plymouth 734.454.4100,            Allen Park 313.388.7180,

Grayling 989.348.4055,      Madison Heights  248.544.6160,     Royal Oak 248.399.7331,

Saginaw 989.782.1985,         St. Clair Shores 313.371.6600

Below are all health coverage exemptions for the 2015 tax year. If you qualify for one of these exemptions, you don’t have to have insurance or pay the fee for the months the exemption applies.

In addition to the exemptions below, there are others based on “hardships.” Learn about hardship exemptions here.

Income-related exemptions

• The lowest-priced coverage available to you, through either a Marketplace or job-based plan, would cost more than 8.05% of your household income
• You don’t have to file a tax return because your income is below the level that requires you to file

Health coverage-related exemptions

• You were uninsured for no more than 2 consecutive months of the year
• You lived in a state that didn’t expand its Medicaid program but you would have qualified if it had

Group membership exemptions

• You’re a member of a federally recognized tribe or eligible for services through an Indian Health Services provider
• You’re a member of a recognized health care sharing ministry
• You’re a member of a recognized religious sect with religious objections to insurance, including Social Security and Medicare

Other exemptions

• You’re incarcerated (serving a term in prison or jail)
• You’re a U.S. citizen living abroad, a certain type of non-citizen, or not lawfully present (learn more about the definition of “lawfully present”)
• You experienced one of the listed hardships

For help with any income tax question call one of our offices:

Plymouth 734.454.4100,            Allen Park 313.388.7180,

Grayling 989.348.4055,   Madison Heights  248.544.6160,   Royal Oak 248.399.7331,

Saginaw 989.782.1985,         St. Clair Shores 313.371.6600

The IRS has a free program for anyone who wants to learn about taxes. “Understanding Taxes” is available 24/7 on IRS.gov. It was designed by the IRS and teachers to help you learn the “how’s” and “why’s” of taxes. The program can make learning about federal taxes as easy as A-B-C.

• Accessible (web-based)
• Brings learning to life
• Comprehensive

Here are six more reasons to study up on it:

1. Lessons on IRS.gov. Teachers and students will find that the nearly 40 lessons on IRS.gov are easy, relevant and fun!
2. User friendly site map.  You can quickly look through the program and skip to the part you want.
3. Tutorials, tests and more.  A series of tax tutorials guide you through the basics of tax preparation. Another feature is a chance to test your knowledge through tax trivia. There’s also a glossary of tax terms.
4. Customize to fit your style.  If you’re a teacher, you can make the interactive program fit your style. Use your own lesson plans and plan your own activities. It’s easy to add to your school’s curriculum.
5. No need to register.  You don’t need to register or login to use the program. You can take a break and return to where you left off whenever you choose. Just take note of the page and lesson number before you leave the page.
6. The how’s and why’s of taxes. Learn the basic concepts of taxes. Self-paced modules offer a step-by-step approach to tax preparation. The lessons are also a great way to learn about the history and theory of taxes in the USA.

You may use the program anytime during the year. Visit IRS.gov and type “Understanding Taxes” in the search box. The application contains lessons and practice problems based on 2014 tax law.

For more current tax law training, visit Link and Learn Taxes on IRS.gov. The IRS will update this program later this year. The Web address is http://apps.irs.gov/app/vita/. You can also find it if you type “Link and Learn” in the search box.

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.

For help with any tax question call one of our offices:                                       

Plymouth 734.454.4100,    Allen Park 313.388.7180,    Grayling 989.348.4055,                           Royal Oak 248.399.7331,    Saginaw 989.782.1985,    St. Clair Shores 313.371.6600

The IRS continues to warn consumers to guard against scam phone calls from thieves intent on stealing their money or their identity. Criminals pose as the IRS to trick victims out of their money or personal information. Here are several tips to help you avoid being a victim of these scams:

• Scammers make unsolicited calls.  Thieves call taxpayers claiming to be IRS officials. They demand that the victim pay a bogus tax bill. They con the victim into sending cash, usually through a prepaid debit card or wire transfer. They may also leave “urgent” callback requests through phone “robo-calls,” or via phishing email.
• Callers try to scare their victims.  Many phone scams use threats to intimidate and bully a victim into paying. They may even threaten to arrest, deport or revoke the license of their victim if they don’t get the money.
• Scams use caller ID spoofing.  Scammers often alter caller ID to make it look like the IRS or another agency is calling. The callers use IRS titles and fake badge numbers to appear legitimate. They may use the victim’s name, address and other personal information to make the call sound official.
• Cons try new tricks all the time.  Some schemes provide an actual IRS address where they tell the victim to mail a receipt for the payment they make. Others use emails that contain a fake IRS document with a phone number or an email address for a reply. These scams often use official IRS letterhead in emails or regular mail that they send to their victims. They try these ploys to make the ruse look official.
• Scams cost victims over $23 million.  The Treasury Inspector General for Tax Administration, or TIGTA, has received reports of about 736,000 scam contacts since October 2013. Nearly 4,550 victims have collectively paid over $23 million as a result of the scam.

The IRS will not:

• Call you to demand immediate payment. The IRS will not call you if you owe taxes without first sending you a bill in the mail.
• Demand that you pay taxes and not allow you to question or appeal the amount you owe.
• Require that you pay your taxes a certain way. For instance, require that you pay with a prepaid debit card.
• Ask for your credit or debit card numbers over the phone.
• Threaten to bring in police or other agencies to arrest you for not paying.

If you don’t owe taxes, or have no reason to think that you do:

• Do not give out any information. Hang up immediately.
• Contact TIGTA to report the call. Use their “IRS Impersonation Scam Reporting” web page. You can also call 800-366-4484.
• Report it to the Federal Trade Commission. Use the “FTC Complaint Assistant” on FTC.gov. Please add “IRS Telephone Scam” in the notes.

If you know you owe, or think you may owe tax:

• Call the IRS at 800-829-1040. IRS workers can help you.

Phone scams first tried to sting older people, new immigrants to the U.S. and those who speak English as a second language. Now the crooks try to swindle just about anyone. And they’ve ripped-off people in every state in the nation.

Stay alert to scams that use the IRS as a lure. Tax scams can happen any time of year, not just at tax time. For more, visit “Tax Scams and Consumer Alerts” on IRS.gov.

For help with any tax question call one of our offices:                                       

Plymouth 734.454.4100,    Allen Park 313.388.7180,    Grayling 989.348.4055,                           Royal Oak 248.399.7331,    Saginaw 989.782.1985,    St. Clair Shores 313.371.6600

There is a lot of information in the news and online about the health care law and its effect on your taxes. For the most up-to-date answers to questions you may have, visit IRS.gov/aca.

From A to Z and ISRP to MEC, the IRS website covers a wide range of health care topics and how they relate to your taxes.

The IRS knows that you want to understand how the health care law may affect you when filing your taxes next year. When questions come up, IRS.gov is a great place for you to begin finding the answers you need – when you need them.

This information is especially important for individuals.  Health coverage providers and employers will provide health coverage statements to covered individuals for the first time in 2016. The IRS will continue to post information as you get ready to prepare and file your 2015 tax return.

At IRS.gov/aca, you’ll find frequently asked questions, legal guidance, and links to other useful sites. You can also access valuable information about specific topics, including the premium tax credit for individuals, rules and responsibilities for employers, as well as tax provisions for insurers, tax-exempt organizations and other businesses.

Aside from IRS.gov, we also post new guidance and information about the health care law on the official IRS Twitter, Tumblr and Facebook accounts. You can also access a web-based IRS flyer, Health Care Law Online Resources, for links to other federal agencies that also have a role in the health care law.

For help with any income tax question call one of our offices:                                       

Plymouth 734.454.4100,    Allen Park 313.388.7180,    Grayling 989.348.4055,                           Royal Oak 248.399.7331,    Saginaw 989.782.1985,    St. Clair Shores 313.371.6600

The 2014 extended tax deadline will be over on October 15th and while many will scramble to make the tax deadline, some of you may miss it and are wondering what to do.  Don’t worry!  If you missed the extended tax deadline, here are answers to 5 of your burning questions to help you figure out what to do next.

I missed the tax deadline. Should I still file?

Yes, you should still file your taxes as soon as possible.

How should I file my taxes?

IRS e-file closes October 15, but there is good news.  You can still file by mailing in your tax return.

Will the IRS charge penalties for not filing by October 15th?

If you have a tax refund coming, there is no penalty for filing late.  Penalties are calculated based on amounts due.

If I owe money, will I be charged penalties and interest?

Unfortunately, you will receive three separate penalties on balances due on late tax returns as follows:

• Failure-to-file penalty
• Failure-to-pay penalty
• Interest

The failure-to-file penalty can be the most steep, as it starts out at 5% for each month the tax return is not filed, up to a total penalty of 25% of your balance due, which is why you should file your taxes as soon as possible.  Even if you owe money and can’t pay it you should still file to eliminate this penalty.  In addition, you may be eligible for other payment options under the IRS Fresh Start Initiative.

If I have a hardship will I still have to pay penalties?

If you show the IRS reasonable cause for not filing on time, you may not have to pay penalties.

Hopefully this puts your mind at ease and moves you closer to filing your taxes. Just because you didn’t make the tax deadline doesn’t mean you should forget about filing altogether.  Who knows?  You may be missing out on a tax refund.

For help with your income tax extension call one of our offices:

Plymouth 734.454.4100,    Allen Park 313.388.7180,    Grayling 989.348.4055,                           Royal Oak 248.399.7331,    Saginaw 989.782.1985,    St. Clair Shores 313.371.6600