" When Do You Pay Additional Medicare Tax? "

Generally, 1.45% of the wages reported on W2 Form given to Employee are tagged as Medicare Tax without any Wage Limit i.e. They are limit less. Similarly, Self employed also pay Medicare Tax.

Beginning in TY2013, Additional 0.9% Medicare Tax was imposed for High Income Earners. These Income Thresholds are listed below:

Filing Status                 Earnings Over            Additional Medicare Tax
MFJ                                                                         $250,000
S, HOH, QW                                                           $200,000
MFS                                                                         $125,000

Form 8959 is used to compute Additional Medicare Tax and is reported on Form 1040.

For Q & A Contact :  Kash, (925) 963 4891 @ Yajnik & Mehta Associates  (YMA) 
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" When Are The C-Corp/S-Corp Tax Returns Are Due? "

TY 2014 Tax Return for C Corp. or S Corp. are due by March 16, 2015.  Following actions are suggested if Filing Extension is required:
1. File Form 7004 For 6 Months Extension by 3/16/2015.
2. If Tax is Owed, Pay the Estimated Tax Along with the 7004.

Q & A Contact :  Kash, (925) 963 4891 @ Yajnik & Mehta Associates  (YMA) 
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'" Is Social Security Taxable ? "

If the Combined Income exceeds the Thresholds listed below, up to 85% Of Security Income may be Taxable depending upon Tax Payer's Filing Status.  List the details:
1.  S or HOH:
      1.1 If the Income is Below $34.001, Up to 50% of Social security Benefits are Taxable.
      1.2 If The Income is Above, $34.001, Up to 85% of Social security Benefits are Taxable.
2.  MFS - 
       2.1  If the Spouses live apart through out the year - Benefits are Taxed at Same as Single Person.
       2.2  If the Spouses lived together any time of the year, Benefits Taxed at 85% regardless of Income.
3.  MFJ -
      3.1  If the Combined Income is greater than  $32,000 but less than $44,001 up to 50% Benefits are Taxable.
      3.2  If the Combined Income is greater than  $44.001 up to 85% Benefits are Taxable.

Q & A Contact :  Kash, (925) 963 4891 @ Yajnik & Mehta Associates  (YMA) 
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" What Are The Effects Of Early Retirement Withdrawals ? "

Tax Payers need to plan for the Effects Of Early Retirement Plan Withdrawals i.e.Retirement Plan Withdrawals Before the Age of 59 1/2 Years.  These withdrawals can be Taxable or Non-Taxable.
1.  Non Taxable Withdrawals - Check out the Applicable Exceptions .  Rollover Assets from one Retirement plan to another within 60 days.
2. ** Taxable Distributions -  Unless the Exceptions apply, they have two major impacts:
          o   Penalty -  10% IRS Penalty plus 2.5 % California Penalty.
          o   Taxable Distribution -  Taxpayer Taxable at the Marginal Tax Rate
              ** Suggest Taxpayer to Put aside these amounts to Avoid Future shock of Tax Liability.
3.  Form 5329 - File for Additional Taxes if applicable.

Q & A Contact :  Kash, (925) 963 4891 @ Yajnik & Mehta Associates  (YMA) 
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" Is Unemployment Income Taxable? "

Unemployment Compensation is Taxable at Federal Level.  Taxpayer receives 1099-G Form stating the Taxable Unemployment Income and Taxes Withheld by Jan 30 of the following year.
Union Benefits may also be Taxable.  Generally, it is a good idea to withhold Taxes form the Unemployment Compensation to avoid future Tax burden.  Fill out Form W- 4V to withhold Taxes from Unemployment Income.
Q & A Contact :  Kash, (925) 963 4891 @ Yajnik & Mehta Associates  (YMA) 
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" Do You Qualify For Free File IRS Program? "

If your Income was less than $60,000 in TY 2014, you Qualify for Free File From IRS. About 70% of the Americans are estimated to Qualify.
IRS Free File Program High Lights:
1. Fillable Tax Electronic Versions Of Forms
2.  Partnerships with 14 Tax Software Manufacturers making their Products Free.
3. Free efile on IRS.Gov
4.  Free Extensions
5.  Quick Refunds with IRS efile.
Q & A Contact :  Kash, (925) 963 4891 @ Yajnik & Mehta Associates  (YMA) 
Facebook : www.facebook.com/yma.taxpro
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YMA - REFERRAL REWARD PROGRAM

" REFERRAL REWARDS PROGRAM "

1. YMA BUSINESS TAX RETURNS OR  BOOK KEEPING OR PAY ROLL   ---  $50 CHECK

2. YMA INDIVIDUAL TAX RETURNS ----   $50  CHECK

3.  YMA TAX PROBLEM REFERRAL ----    $100 CHECK

4. QUALIFICATION

 Tri-Valley Chambers of Commerce Members, And Clients Qualify for the YMA Promotional Program.        Please notify YMA about the Referral Before the First YMA Meeting.  Program Expires 12/31/2015.

 5.  YMA REFERRAL CHECK WILL BE ISSUED IN THE LAST WEEK OF APRIL 2015 

Q & A Contact :  Kash, (925) 963 4891 @ Yajnik & Mehta Associates  (YMA) 
Facebook : www.facebook.com/yma.taxpro
Twitter :     http://twitter.com/kash_yajnik
Linked-In URL:
http://www.linkedin.com/company/3246905?trk=tyah&trkInfo=tas%3Ayajnik%20and%20mehta%2Cidx%3A1-1-1