Lately, millennials have become a prime audience for the financial industry's products and services, as the next generation of adults starts down the road of investing. Hardly a day goes by that one study or another doesn't offer insights for what millennials are doing, should be doing or shouldn't be doing about their finances.
Did you know?
Johnstown, Pennsylvania was devastated by a flood that killed nearly 2,000 people in the late 19th century, and in 1936 another flood ruined the town. That led to the state of Pennsylvania passing a tax on alcohol - the proceeds of which would be used to rebuild the city. By 1942, enough money was raised to rebuild Johnstown, yet the tax still exists to this day, and brings in around $200 million a year for Pennsylvania.
Although it seems like tax season just ended, next tax season is already just around the corner. Therefore, we've put together a list of things you need to know.
• Supreme Court ruling on "ObamaCare." Millions of people will now continue to have access to affordable health care in the states which did not establish marketplace healthcare exchanges.
• Penalties for uninsured increase. The individual mandate penalty increases to the higher of 2 percent of yearly household income of $325 person per year, with a maximum penalty per family for those using this method of $925.
• 10 – Deposit payroll tax for payments on Sep 2-4 if the semiweekly deposit rule applies.
• 10 – Employers: Employees are required to report to you tips of $20 or more earned during August.
• 11 – Deposit payroll tax for payments on Sep 5-8 if the semiweekly deposit rule applies.
• 15 – Individuals: Pay the third installment of your 2015 estimated tax.
• 15 – Partnerships: File Form 1065 if you timely requested a 5-month extension.
The IRS recently encouraged eligible small businesses that did not file certain retirement plan returns to take advantage of a low-cost penalty relief program enabling them to quickly come back into compliance.
The program is designed to help small business owners that may have been unaware of the reporting requirements that apply to their retirement plans.
Fear that Social Security benefits won't be available in retirement has sparked concern among many of us. But there is some cause to be hopeful: the combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance Trust Funds aren't projected to run out until 2034, gaining a year of solvency over last year's projections.
Some important facts:
1. You may have to pay tax on your Social Security income.
2. You may qualify for Social Security even if you're divorced.
3. File and suspend receipt of your benefits for increased income.
We all know we should be saving early and consistently for retirement, but sometimes our intentions don't necessarily translate into bottom-line results.
While there are many reasons why Americans are coming up short in the savings department, most of them can be traced back to an insufficient financial plan. As the name implies, a financial plan is your blueprint for success.
Sure, it's summer. The perfect time to highlight some of the lesser known but legitimate tax deductions we've seen in 2015. Take a look:
1. Charity Work Can Lead to Deductible Childcare – You can pay someone to babysit your children while you work a job that gives no pay, and you may be able to write off the babysitter costs.
2. Quit Smoking – Sometimes you can deduct the cost of any smoking cessation programs, patches or aides.
Did you know many cities and states levy a "jock tax" on any income earned by entertainers and athletes while working there? Therefore, athletes have to pay taxes on a portion of their income in any place they play.
For example, when the Seattle Seahawks and Pittsburgh Steelers played in Super Bowl XL at Ford Field in February 2006, Detroit reportedly collected $200,000 in nonresident income from the players.
- 5 – Deposit payroll tax for payments on July 29-31 if the semiweekly deposit rule applies.
- 7 – Deposit payroll tax for payments on August 1-4 if the semiweekly deposit rule applies.
- 10 – Employers: Employees are required to report to you tips of $20 or more earned during July.
- 10 – File Form 941 for the second quarter if you timely deposited all required payments.
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