ElectroFile Income Tax Service   Income Tax Service
5200 W Market St
Greensboro, NC 27409
  Terry Hough, President Terry Hough
See our other newsletters at ElectroFile Income Tax Service Newsletters

November 03, 2015

Let's discuss Year End Tax Planning.

First, let me say thanks for allowing ElectroFile Income Tax Service to serve you. I want you know that we really appreciate your business, support, and the friendship that you've given us over the years.

You haven't heard much from me since April. That is because there really hasn't been any important tax news until recently. Congress has been more interested in bickering and politicking than tackling tax issues.

I've been so quiet that several of you have even called to see if ElectroFile was still in business. Someone drove by and saw the grass had grown up way too far and thought we had moved out. Actually, our lawn service mows only on Saturday and they were rained out several weeks in a row. I can assure you that we are still here!

Back to tax news... Congress has not yet taken up the "tax extenders" and so several of the items that have to routinely be updated each year still remain in limbo. One of those is the deduction that teachers may take for classroom supplies up to $250, for example. I anticiapte that all of the "tax extenders" will be approved before year end.

The most important news for 2015 (and beyond) happened just last week. Congress approved and President Obama signed into law the budget bill. You will hear, or have already heard. about some of the items included. And, certainly, you will hear a few of the Republican candidates for the presidency criticizing the "theft" of social security funds. But, you won't hear much about the real surprise that was included.

This new budget bill included items that make changes to how you can apply for and draw your Social Security benefits. It is really a bit too early to accurately interpret the changes. However, it does remove some of the advantages that could be gained by timing your application, suspending benefits, drawing on spousal benefits instead of your own, etc. Basically, those advantages have been eliminated or strictly limited for future applicants (beginning 6 months from now). It will take a little while for the new rules to be issued/implemented by the Social Security Administration.

For those of you who have been working with me on selecting the appropriate Social Security benefits strategy, it is possible that we may need to rethink and modify our plan. As soon as I have full details, you will be hearing from me. At this point, I don't think any of the plans we have started or planned to implement in 2015 are affected.

Now is the time to put your year end tax planning into effect. It is already November!

Here is an updated version of one of my previous newsletters on year end steps to take...

Year-End Tax Tips to Help You Save

Although the year is almost over, you still have time to take steps that can lower your 2015 taxes. Now is a good time to prepare for the upcoming tax filing season. Taking these steps can help you save time and tax dollars. They can also help you save for retirement. Here are three year-end tips from the preparers at ElectroFile Income Tax Service for you to consider:
Spending some time thinking about and acting on your year end tax steps can significantly reduce your 2015 tax bill. Once December 31st has past, it will be too late to take any steps to reduce your 2015 tax bill.

And, don't forget, we are here to help you should a question arise.