Tax Increase Prevention Act of 2014 (TIPA) And Extended Tax Breaks Through 2014

Do you know about the Tax Increase Prevention Act of 2014 and how it possibly could affect you? Backed by a full-service CPA firm, the Tax Resolution Institute believes in providing tax updates and resources to our clients and our potential clients. Sent out on a monthly basis in the SST newsletter, below is important 2014 and 2015 tax update information about the Tax Increase Prevention Act of 2014.

Tax Increase Prevention Act of 2014 (TIPA)

Tax Increase Prevention Act of 2014

The Tax Increase Prevention Act of 2014

The Tax Increase Prevention Act of 2014 (TIPA) was signed into law on December 19, 2014. Thankfully, TIPA retroactively extends most of the federal income tax breaks that would have affected many individuals and businesses through 2014. So, these provisions may have a positive impact on your 2014 returns. Unfortunately, these extended provisions expired again on December 31, 2014. Unless Congress takes action again, these favorable provisions won’t be available for 2015.

Here are some of the extended provisions impacting individual taxpayers.

Tax breaks for individuals extended through 2014

Qualified tuition deduction -

This write-off, which can be as much as $4,000 for married taxpayers with adjusted gross income up to $130,000 ($65,000 if unmarried) or $2,000 for married taxpayers with adjusted gross income up to $160,000 ($80,000 if unmarried), expired at the end of 2013. TIPA retroactively restored it for 2014.

Tax-free treatment for forgiven principal residence mortgage debt -

For federal income tax purposes, a forgiven debt generally counts as taxable Cancellation of Debt (COD) income. However, a temporary exception applied to COD income from canceled mortgage debt that was used to acquire a principal residence. Under the temporary rule, up to $2 million of COD income from principal residence acquisition debt that was canceled in 2007–2013 was treated as a tax-free item. TIPA retroactively extended this break to cover eligible debt cancellations that occurred in 2014.

$500 Energy-efficient Home Improvement Credit -

In past years, taxpayers could claim a tax credit of up to $500 for certain energy-saving improvements to a principal residence. The credit equals 10% of eligible costs for energy-efficient insulation, windows, doors and roof, plus 100% of eligible costs for energy-efficient heating and cooling equipment, subject to a $500 lifetime cap. This break expired at the end of 2013, but TIPA retroactively restored it for 2014.

Mortgage insurance premium deduction -

 Premiums for qualified mortgage insurance on debt to acquire, construct or improve a first or second residence can potentially be treated as deductible qualified residence interest. The deduction is phased out for higher-income taxpayers. Before TIPA, this break wasn’t available for premiums paid after 2013. TIPA retroactively restored the break for premiums paid in 2014.

Option to deduct state and local sales taxes -

 In past years, individuals who paid little or no state income taxes had the option of claiming an itemized deduction for state and local general sales taxes. The option expired at the end of 2013, but TIPA retroactively restored it for 2014.

IRA Qualified Charitable Contributions (QCDs) -

 For 2006–2013, IRA owners who had reached age 70½ were allowed to make tax-free charitable contributions of up to $100,000 directly out of their IRAs. These contributions counted as IRA Required Minimum Distributions (RMDs). Thus, charitably inclined seniors could reduce their income tax by arranging for tax-free QCDs to take the place of taxable RMDs. This break expired at the end of 2013, but TIPA retroactively restored it for 2014, so that it was available for qualifying distributions made before 2015.

$250 deduction for K-12 educators -

For the last few years, teachers and other eligible personnel at K-12 schools could deduct up to $250 of school-related expenses paid out of their own pockets — whether they itemized or not. This break expired at the end of 2013. TIPA retroactively restored it for 2014.

Although the Tax Increase Prevention Act of 2014 will be helpful to many, it cannot help you if you have serious delinquent income tax debts that need to be addressed. The IRS is not going away and the letters are never going to stop if they have started. If you have any problems with income tax debts or need tax resolution help, please contact the Tax Resolution Institute today by calling (800) 401-5926.

 

Sherman Oaks Tax Resolution Services For San Fernando Valley Locksmith With FTB Wage Garnishment

When a San Fernando Valley locksmith needed Sherman Oaks tax resolution services, he contacted the Tax Resolution Institute for help. Hit hard when his wages were levied by the California Franchise Tax Board, the successful locksmith needed help with the FTB wage garnishment. A major problem is the California Franchise Tax Board is less willing to negotiate than even the IRS. Without the support of a tax resolution professional and quality Sherman Oaks tax resolution services, the locksmith found himself locked out and in serious financial trouble.

Accessing Sherman Oaks Tax Resolution Services

sherman oaks tax resolution services

Sherman Oaks Tax Resolution Services

With over 25 years of experience negotiating positive tax relief outcomes with the California Franchise Tax Board, the Tax Resolution Institute had the skills and the background that the locksmith needed to open that door. By accessing quality Sherman Oak tax resolution services, he began the process of putting a stop to the FTB wage garnishment that was draining his paycheck on a weekly basis. By underreporting his income for several years, avoiding to mention the cash extras that he was making on the side beyond his usual employment, the locksmith could have been charged with tax evasion.

Instead, once the record of the income was discovered combined with a failure to file his state taxes for a few years when he was younger, the tax debt collection actions taken against the locksmith were swift and furious. With what seemed like almost no warning, his longtime employer – one of the most successful locksmith companies in Southern California – was alerted to an FTB wage garnishment being enacted by the California Franchise Tax Board. Shocked by the financial actions being taken against him, the locksmith felt overwhelmed and failed to take immediate action.

FTB Wage Garnishment Enacted

With the FTB wage garnishment enacted, he was shocked by how swiftly his paycheck was diminished and the significant chunk of his bi-weekly earnings being lost to the state. How would he manage the lease payments for his wife’s new Prius? How would he make the quarterly payments for the tuition to the private schools his kids attended? Right away, considering the location of his family, he knew that he needed to access Sherman Oaks tax resolution services.

After talking to several friends and searching the Internet, he decided to take a step in the right direction and contact the Tax Resolution Institute. After going over his case in a free consultation, the Tax Resolution Institute took on the case. By negotiating an ongoing installment agreement with the California FTB, quality Sherman Oaks tax resolution services were delivered to the locksmith. As opposed to the prison of the FTB wage garnishment, he found the door opened and walked into the comfortable space of a reasonable payment plan.

Do You Need Sherman Oaks Tax Resolution Services?

If you need Sherman Oaks tax resolution services, please contact the Tax Resolution Service for a free consultation. Please call (801) 401-5926 before the California Franchise Tax Board takes actions against you. Sherman Oaks tax resolution services can open the door, but you first need to reach for the key.