The Moskowitz LLP team hopes that your fall is off to a good start. October is the perfect time of year to be thinking ahead to the next year, before the holidays and end of year madness. What do you want to accomplish in 2016? Perhaps your goal is to expand your business or get your finances in order. Those are the usual suspects, come January, and we can help you to achieve your goals.
We are also looking ahead to next year and will be expanding our office locations to include Los Angeles. We have noticed that the federal government has greatly increased their scrutiny of business and money transactions in this area. By having an office in this location, our attorneys will have a permanent home to work from.
Moskowitz LLP is also excited to announce our community education outreach program for tax planning. In 2016, we will be rolling out live and online informational events. Until then, we hope to see you at the following events:
- October 23rd, 2015 – We will attend the Chinese Newcomers Association’s annual banquet.
- October 28th, 2015 – We will host “Tax Advantaged Strategies Regarding Foreign Source Income”.
Presently, we encourage you to take a look at your 2015 tax situation and make sure you have paid enough in estimates and/or withholding. If you haven’t, call us today so we can help.
Steve Moskowitz, Esq.
Founding Partner of Moskowitz LLP
Tax filing reminders
- October 1st – In most circumstances, deadline for businesses to adopt a SIMPLE retirement plan for 2015.
- October 15th – Filing deadline for 2014 individual tax returns automatically extended six-months from the April 15 deadline.
- October 15th – If you converted a regular IRA to a Roth in 2014 and now want to switch it back to a regular IRA, you have until this date to do so without penalty.
Check your 2015 tax payments
Don’t let penalties for underpaid taxes increase your tax bill next April and default your collection arrangements. Check the total withholding and/or estimated taxes you’ve paid during 2015. If you’ve underpaid, consider adjusting your withholding for the final months of the year or increasing your remaining quarterly estimate. When making your calculations, remember to include the 3.8% tax on any planned net investment income. Additionally if you employ household workers, be sure to estimate the payroll taxes you’ll owe for them. Call Moskowitz LLP now to discuss how and what changes to make.
Give your kids the power of a Roth IRA
Would you like to give your child a head start on smart money habits? Here’s a suggestion: Have the child invest in a Roth IRA. Why? The tax-free compounding of contributions and investment returns over your child’s lifetime is a great wealth-builder. Here’s what you need to know.
- There is no minimum age to open a Roth IRA account. All your child needs is earned income, either from a summer job or from self-employment.
- The maximum contribution to a Roth IRA for 2015 is $5,500. Your child can contribute less and you can provide some or all of the cash, up to the amount of your child’s earned income.
- Your child won’t receive a federal tax deduction for a Roth IRA contribution – and will pay no federal income tax on qualified distributions taken after age 59.
- You can continue to claim your child on your tax return as a dependent. Your child is also allowed a federal standard deduction of $6,300 for 2015, which means the first $6,300 of earned income is income-tax free.
- If you own a business and can employ your child, you can benefit from additional tax savings, including a payroll deduction for your business. In addition, depending on how your business is organized, you may not have to pay federal payroll taxes such as FICA, Medicare and unemployment. Remember, your child must actually perform real services and the wages must be fair market value.
- An early Roth IRA withdrawal could affect your child’s college financial aid. Your child can make penalty-free withdrawals from a Roth to pay for college costs, but those withdrawals generally count as income when applying for financial aid.
Are you interested in learning more? Give Moskowitz LLP a call. We’ll help you to get started saving for your child’s future.
In the mood for some tax talk? Join us at the Coconut Thai Restaurant in Burlingame, CA, details below: