2306 Anderson Ave.
Manhattan, KS 66502


February 12, 2015

Tax benefits renewed. The Tax Increase Prevention Act, enacted Dec. 19, 2014, extended for 2014 a number of tax benefits that had expired at the end of 2013. This means that, as was the case in earlier tax years, eligible taxpayers can claim these benefits on their 2014 return. Renewed benefits include: the deduction for state and local sales taxes claimed by taxpayers who itemize their deductions on Schedule A; educator expense deduction claimed on Form 1040 Line 23 or Form 1040A Line 16 by teachers and other eligible elementary and secondary educators; and qualified charitable distributions by IRA owners age 70½ or older. One-rollover-per-year limit for IRA owners. Under a new rule, an IRA owner can make only one rollover from an IRA to another (or the same) IRA in any 12-month period, regardless of the number of IRAs he or she owns. The limit will apply by aggregating all of an individual's IRAs, including SEP and SIMPLE IRAs as well as traditional and Roth IRAs, effectively treating them as one IRA for purposes of the limit. While this rule only begins to apply in 2015, it could affect taxpayers' actions with respect to their IRAs and their 2014 returns. There is a 2015 transition rule that ignores some 2014 distributions. New way to make tax payments. IRS Direct Pay, which debuted during last year's tax-filing season, allows individuals to pay their tax bills or make quarterly estimated tax payments, directly from checking or savings accounts without any fees or pre-registration.

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