Year End Checklist for Employees

With the end of the year drawing near, now is a good time to spend a little tax planning.

  • Check your withholding. Is it in line with your income and deductions? If not, file a new W-4 with your employer
  • Review your employee benefits. Are you taking advantage of all your employer has to offer?
  • Charitable Contributions - donate by 12/31/14 for deductions this year.
  • Budgeting - how are you doing on this years goals? What are your goals for next year?

A little planning now can reduce your taxes in April!

Year End Checklist for the Self Employed

Now is a great time to take a quick look at your tax situation for this year as there is still time to make needed adjustments. Here is a short checklist:

  • žCheck your tax deposits to avoid underpayment penalties. Your final quarterly tax deposit is due on January 15, 2015.

  • Check your income. If more or less than you predicted some year in tax planning may be in order.

  • Check our expenses. Speed up or slow down your spending as needed.

  • Retirement planning, now is a good time to review your plan or start one.

Taking a few minutes now can improve your tax situation.

Federal Tax Return - Standard Mileage Rates.

Beginning on Jan. 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 56 cents per mile for business miles driven
  • 23.5 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

The business, medical, and moving expense rates decrease one-half cent from the 2013 rates.  The charitable rate is based on statute.

The 2013 mileage rates were:

  • 56.5 cents per mile for business miles driven
  • 24 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.