4 Things You Need to Know Before Filing Your Taxes

Clarence Thompson is owner and founder of Capital Connoisseur Group, LLC, a financial education and consulting company.  Capital Connoisseur Group specializes in financial management including Savings/ Budgeting, Mutual Funds (401(k), IRA), Stock market investing, Estates/ Wills, Insurance (Life and Health), Real Estate financing with over 10 years of financial services experience. Now he is looking to share his expertise advise with you!

Accumulating wealth takes time and effort unless you were blessed to be born with a trust fund or to parents that are millionaires.  The biggest advantage between those who are wealth builders and those who aren’t is EDUCATION!  Tax laws can constantly change on a yearly basis and it is imperative to stay abreast of the changes that affect you.  Here are 4 Things you need to know before filing your taxes.

Know Your IRA Contribution Limits

Income Limits for 2015 will be increased by $2,000.  The new income limits are between $116K and $131K annually.   For married couples it is now up to $183K but less than $193K.  Owning both a traditional IRA and ROTH IRA is allowable, however the contribution limit is $5,500 ($6,500 if you’re 50 or older).

Know Your Employer Plan Contribution Limits

Employer Plan contributions have been increased from $17,500 to $18,000 for 2015 tax year.  Those employees over 50 years of age will be able to use the catch up limit amount which increased from $5,500 to $6,000.

Know Your IRA Rollover Limits

Individual investors are now limited on the amount of IRA rollovers they can perform every year.  In previous years investors were able to rollover an IRA from one trustee to another with no tax penalties.  Well now you are only able to perform one rollover from IRA to IRA between different trustees.  If you perform two or more you could be subject to a 10% early withdrawal penalty along with the 6% excess contribution limit penalty if the rollover exceeds the

Know  Your Health Expense Balances

In 2015 you will no longer be able to carry over a balance of $500 in your Flexible Spending Accounts (FSA) to the next year.  If you carry over the $500 balance into the next year you will be ineligible to participate in a Health Savings account (HSA).  However, the annual dollar limit on employee contributions to a FSA has increased to $2,550 from the $2,500 2014 amount.Please take advantage of all the tax shelters that our government provides.  There are always plenty of deductions, breaks and shelters for the everyday working citizen.  Having the right Tax professional assist you makes the difference.  If you are interested in Tax Planning or Financial services please

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