The great news concerning the distributions of the retirement contributions would surely welcome various opportunities for many to start building their own businesses using the retirement benefits they will be receiving.
Atlanta, GA -- (SBWIRE) -- 11/27/2014 -- The many years of laborious work of millions of low and moderate income workers would be well paid off after the Internal Revenue Service announced that the full benefits of Saver’s credit, including the retirement contributions and special tax credit will be given on their 2014 tax returns and in further years.
Through saver’s credit, also known as the retirement savings contributions credit, eligible workers who were able to set up a new individual retirement arrangement or add money to an existing Individual Retirement Account (IRA) for 2014 are qualified to get the said full benefits. Employees with elective contributions under the 403(b) plan, 457 plan or the Thrift Savings Plan must make their plans to 401k plan or a similar workplace program by the end of the year. What's more, employees who were unable to save for this year can schedule their 2015 contributions as soon as their employers begin keeping them by January.
Married couples who filed joint accounts with wages amounting up to $60,000 in 2014 or $61,000 in 2015; married individuals and singles who have filed separately with incomes up to $30,000 in 2014 or $30,500 in 2015; and the heads of the household with incomes up to $45,000 in 2014 or $45,750 in 2015 are entitled to claim their saver’s credit.
Saver’s credit, also known as tax credit, reduces the federal income tax that people pays dollar by dollar. It is based upon the contributions and the credit rate as low as 10% or as high as 50%. It depends on the adjusted gross income, filing status, tax liability and amount that are contributed to the qualifying retirement plans. Thus, the lower the income, the higher the credit rate would be.
The great news concerning the distributions of the retirement contributions would surely welcome various opportunities for many to start building their own businesses using the retirement benefits they will be receiving. Mostly 401(k) planners used their retirement funds in their new company, thinking that it is “based on long-standing provisions of the Internal Revenue Code”.
Interstate Tax Strategies, P.C., an organization that specializes in interstate sales, use of tax, and other Atlanta tax services, strongly believes that this event would create several dilemmas on people who are not fully aware if they are in the right path with their sales tax processes and procedures, especially if the business operates in more than one state. Certain queries that concerns with nexus for sales tax purposes, tax exemptions, internet sales tax, sales tax software, and sales tax audits are some that are being addressed by Interstate Tax Strategies.
With the retirement benefits that many low and moderate income workers would receive in the coming years, no doubt that a lot of new businesses and its franchises would appear in various locations. But to relay those funds that will be received fully in one industry could be risky, especially if it is not carefully planned or even consulted with numerous experts in the industry.
About Interstate Tax Strategies, P.C
When it comes to Atlanta tax services, Interstate Tax Strategies, P.C. is unique in its exclusive focus on interstate sales and use tax. Ned Lenhart, CPA, is President of Interstate Tax Strategies and has been perfecting his tax consulting skills for over 27 years. He started Interstate Tax Strategies, P.C. in 2003 after serving as a Firm Director for Deloitte in its Atlanta office. Prior to joining Deloitte in 1994, Ned was a Sr. Manager with Arthur Andersen in Kansas City, Missouri. Ned also worked for the Missouri Department of Revenue where he was the Director of the Compliance Division and led the state's civil and criminal tax enforcement efforts. He also served as Deputy Director of the Division of Taxation and Bureau Manager for the Compliance Division.