Just when you thought you’d outsmarted the system lying to Ceasar.
First the questions:
- Standard mileage rate or
- Actual costs
Next, the entity question:
- Self employed or
- LLC or S Corp or C Corp
- Using GPS app log ?
- Paper log ?
- If corp titled, is there mixed pers/bus use ?
Well here you go:
(Good advise for the rest of us too)……
Things You Must Have If You Opt Out
If you are going to opt out, there are some things you must do for the rest of your life from a common sense perspective to make sure you and your family are taken care of. They are things you should be doing anyway, but you definitely should not opt out without having these things in place. Otherwise, you’re signing up for major risks that are just not worth taking.
- Term life insurance—You must have a level term policy that covers about 10 times your income. (That’s the average amount, but check with a professional who will take factors like age, income and specific aspects into consideration.) That way, if something happens to you, your family will be taken care of. If you die with children under 18, they would receive a Social Security check, so you’ve got to have a life insurance policy in place if you’re going to opt out, and you must keep it—period—because Social Security is not going to be there for your family to count on.
- Long-term disability insurance—If you become disabled and have opted out, you will not receive anything from the S.S.I. at all. Do not opt out without having a good long-term disability policy in place. Once you have it, keep it!
- Retirement savings – a 403(b) and Roth IRA—You will not be receiving a Social Security check at retirement if you opt out. So what?! If you take the thousands and thousands of dollars you’d be paying into Social Security and put that into a Roth IRA in a good growth stock mutual fund, you’ll retire with dignity times 20!
- Long-Term Care Insurance—Dave recommends long-term care insurance the day you turn 60. So if that’s you, add that to your list of must-have coverages!
Affordable Care Act changes for individuals
The individual mandate penalty increases to the higher of 2 percent of yearly household income or $325 person per year, with a maximum penalty per family for those using this method of $975.
New forms to contend with
The Form 1095-B and Form 1095-C, which were optional for calendar year 2014, must be filed by any person that provides minimum essential coverage to an individual
Also, taxpayers must receive a payee statement (1098-T) before they can claim an American Opportunity, Hope, or Lifetime Learning Credit or take the deduction for qualified tuition and related expenses
These are always great annual reads – especially for those just setting up households or those making a later in life relocation.
PS, Ask us about free relocation screening.
Most contractors / small business owners think of LLC or S-Corp as the only way to go because of ‘double taxation’. But ‘qualified dividends’ – which is most – get a 0% long term capital gains break if you are in the 10% or 15% bracket.
Contact me for more information if you are you’re own boss.
IRS estimates that 17 percent of taxes owed were not paid, leaving $450 billion underpayment more
( i.e. …. hold on to your wallets and document everything ! )