Tax Tips

New Mexico Medical Expense Tax Deduction Not Ending

UPDATE, 6/24/15: Included in the tax package that Gov. Susana Martinez signed into law in mid-June was the state income tax deduction of up to 25 percent on out-of-pocket medical expenses. For a brief period, it looked like this deduction, which allows taxpayers to deduct a percentage of unreimbursed medical expenses based on filing status and adjusted […]

Report Changes in Circumstances That Could Affect Your 2015 Premium Tax Credit

If you have enrolled for health coverage through the Health Insurance Marketplace and receive advance payments of the premium tax credit in 2015, it is important that you report changes in circumstances, such as changes in your income or family size, to your Marketplace. Advance payments of the premium tax credit provide financial assistance to […]

New Business & New Employer Workshops

A series of summer workshops geared toward business owners begins next week. Topics covered will include Combined Reporting System (CRS) for Gross Receipts, Withholding and Compensating Tax programs, Non-Taxable Transaction Certificates, estimated income tax payments, Withholding taxes for New Mexico employees, and Worker Compensation Insurance. New Business Workshop – Albuquerque Monday, June 8, 2015 Monday, June 15, 2015 […]

Top 10 Tips to Know if You Get a Letter from the IRS

The IRS mails millions of notices and letters to taxpayers each year. There are a variety of reasons why you might receive a notice. Here are the top 10 tips to know in case you get one. 1. Don’t panic. You often can take care of a notice simply by responding to it. 2. An IRS […]

Good Records Key to Claiming Gifts to Charity

Keeping good records is key to qualifying for the full charitable contribution deduction allowed by law. In particular, this includes ensuring that you have received required statements for two contribution categories—each gift of at least $250 and donations of vehicles: To claim a charitable contribution deduction, you must get a written acknowledgement from the charity for all […]

Are You Self-Employed? Check Out These IRS Tax Tips

Many people who carry on a trade or business are self-employed. Sole proprietors and independent contractors are two examples of self-employment. If this applies to you, there are a few basic things you should know about how your income affects your federal tax return. Here are six important tips about income from self-employment: SE Income. […]

New IRA Rollover Limit: Court Case Changes the Rules

Generally, when a distribution from an IRA is repaid within 60 days, it isn’t included in gross income. An individual is permitted to make only one such rollover during any one-year period. At the beginning of the year, IRS Publication 590, Individual Retirement Arrangements (IRAs), stated that this limitation is applied on an IRA-by-IRA basis. […]

Bike to Work: Commuting Reimbursement Could Be a Win-Win

An employer can reimburse reasonable expenses of qualified bicycle commuting. Reasonable expenses include the purchase of a bicycle, improvements or repairs to a bicycle, and storage. The IRS allows you to offer your employees a nontaxed employee fringe benefit of $20 per qualified bicycle commuting month during that year. A qualified commuting month is any […]

2014 Standard Mileage Rates

Beginning on January 1, 2014, the standard mileage rates for the use of a vehicle are: 56 cents per mile driven for business purposes (22 cents for depreciation). 23.5 cents per mile driven for medical or moving purposes. 14 cents per mile driven in service of a charitable organization.

Moving? Why You Need to Notify the IRS and the USPS Separately

Moving can be stressful; but not receiving a payment or notice from the IRS will only add to that stress. The IRS only initiates contact with taxpayers by mail, so it’s important that they have your correct address. Just because you submit a change of address with the U.S. Postal Service (USPS) doesn’t mean all […]