Report Certain Foreign Bank and Financial Accounts by June 30, 2015

The Internal Revenue Service today reminded everyone who has one or more bank or financial accounts located outside the United States, or signature authority over such accounts, that they may need to file an FBAR by next Tuesday, June 30.

FBAR refers to Report 114, Report of Foreign Bank and Financial Accounts, which must be filed with the Financial Crimes Enforcement Network (FinCEN), a bureau of the Treasury Department. It is not a tax form and cannot be filed with the IRS. The form must be filed electronically and is only available online through the BSA E-Filing System website.

In general, the filing requirement applies to anyone who had an interest in, or signature or other authority over foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2014. Because of this threshold, the IRS encourages taxpayers with foreign assets, even relatively small ones, to check if this filing requirement applies to them.

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Quotes

Nothing works better than just improving your product.  Joel Spolsky

It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.  Theodore Roosevelt

Make every detail perfect and limit the number of details to perfect.  Jack Dorsey

If you don’t build your dream, someone else will hire you to help them build theirs. Dhirubhai Ambani

The value of an idea lies in the using of it.  Thomas Edison

 

Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. Steve Jobs

 

Startups don’t win by attacking. They win by transcending. There are exceptions of course, but usually the way to win is to race ahead, not to stop & fight.  Paul Graham

 

It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.  Charles Darwin

Someone is sitting in the shade today because someone planted a tree a long time ago. Warren Buffett

Attention to detail can’t be (and never is) added later. It’s an entire development philosophy, methodology, and culture.  Marco Arment

 

Solve a real problem. You don’t start a company because you want to be an entrepreneur or the fame and glory that comes along with it. You become an entrepreneur to solve a real problem.  Aaron Patzer

 

People don’t buy what you do; they buy why you do it. And what you do simply proves what you believe.  Simon Sinek

 

As a startup CEO, I slept like a baby. I woke up every 2 hours and cried.  Ben Horowitz

 

Competition validates you. It creates a category. It permits the sale to be this or that, not yes or no.  Seth Godin

 

You need a team that’s going to care about this thing as much as you do.  Scott Heiferman

Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen. Richard Branson

The best investor is your customer.  Esther Dyson

 

It’s a great discipline to have to report to somebody – even if you’re the sole owner.  Tim O’Reilly

 

If you have an urge to build something that could change the world, don’t focus on the money, but the legacy you’ll leave behind.   Alexander Tamas

 

Do not let failure dictate your future choices.  Roger Ehrenberg

 

“Easy” is a word that’s used to describe other people’s jobs.  Jason Fried

Trying to do it all and expecting that it all can be done exactly right is a recipe for disappointment. Perfection is the enemy. Sheryl Sandberg

If you have more than three priorities, then you don’t have any.  Jim Collins

Never give up. Today is hard, tomorrow will be worse, but the day after tomorrow will be sunshine. Jack Ma

You have to be very nimble and very open minded. Your success is going to be very dependent on how your adapt.  Jeremy Stoppelman

Success is a lousy teacher. It seduces smart people into thinking they can’t lose. Bill Gates

You have no idea if your idea matters until you share it.  Michael Lopp

California Income Tax 2014

2014 California 540  Tax Forms – Personal Income Tax

On this page you will find:

-  Forms 540  (California Resident Income Tax Return) and instructions how to fill this forms.

- California Nonresident or Part-Year Resident Income Tax Return

- Amended Individual Income Tax Return

-Estimated Tax for Individuals

California State Individual Income Tax Forms 2014

2014 California Tax Calulator

2014 Tax Rates and Exemptions

 

Individual tax rates

  • The maximum rate for individuals is 12.3%
  • The AMT rate for individuals is 7%
  • The Mental Health Services Tax Rate is 1% for taxable income in excess of $1,000,000.

California State and Federal Income Tax Forms

California State Income Tax Forms

2014 California 540 Tax Forms – Personal Income Tax

540 Form – 2014 California Residents
540-2EZ Form– 2014 California Resident
540-NR Form (Long) – CA part-year or nonresident
540-ES Form– 2014 estimated tax

More California State  tax forms and publications

Federal Forms

Form W-4 – 2015 Employee’s Withholding Allowance Certificate
Form W-9 – Request for Taxpayer Identification Number and Certification
Form 1040-ES –  Estimated Tax for Individuals
Form 1040 – U.S. Individual Income Tax Return
Form 941 – 2014 Employer’s QUARTERLY Federal Tax Return

More Federal forms and publications

Check for latest forms

2014 California Tax Rates and Exemptions

The rate of inflation in California, for the period from July 1, 2013, through June 30, 2014, was 2.2%. The 2014 personal income tax brackets are indexed by this amount.

Corporate tax rates

Entity type Tax rate
Corporations other than banks and financials 8.84%
Banks and financials 10.84%
Alternative Minimum Tax (AMT) rate 6.65%
S corporation rate 1.5%
S corporation bank and financial rate 3.5%

Individual tax rates

  • The maximum rate for individuals is 12.3%
  • The AMT rate for individuals is 7%
  • The Mental Health Services Tax Rate is 1% for taxable income in excess of $1,000,000.

Exemption credits

Filing Status/Qualification Exemption amount
Married/Registered Domestic Partner (RDP) filing jointly or qualifying widow(er) $216
Single, married/RDP filing separately, or head of household $108
Dependent $333
Blind $108
Age 65 or older $108

Phaseout of exemption credits

Higher-income taxpayers’ exemption credits are reduced as follows:

Filing status Reduce each credit by: For each: Federal AGI exceeds:
Single $6 $2,500 $176,413
Married/RDP filing separately $6 $1,250 $176,413
Head of household $6 $2,500 $264,623
Married/RDP filing jointly $12 $2,500 $352,830
Qualifying widow(er) $12 $2,500 $352,830

When applying the phaseout amount, apply the $6/$12 amount to each exemption credit, but do not reduce the credit below zero. If a personal exemption credit is less than the phaseout amount, do not apply the excess against a dependent exemption credit.

Standard deductions

The standard deduction amounts for:

Filing status Deduction amount
Single or married/RDP filing separately $3,992
Married/RDP filing jointly, head of household, or qualifying widow(er) $7,984
The minimum standard deduction for dependents $1,000

Reduction in itemized deductions

Itemized deductions must be reduced by the lesser of 6% of the excess of the taxpayer’s federal AGI over the threshold amount or 80% of the amount of itemized deductions otherwise allowed for the taxable year.

Filing status AGI threshold
Single or married/RDP filing separately $176,413
Head of household $264,623
Married/RDP filing jointly or qualifying widow(er) $352,830

Nonrefundable Renter’s credit

This nonrefundable, non-carryover credit for renters is available for:

  • Single or married/RDP filing separately with a California AGI of $37,768 or less.
    • The credit is $60.
  • Married/RDP filing jointly, head of household, or qualifying widow(er) with a California AGI of $75,536 or less.
    • The credit is $120.

Miscellaneous credits

  • Qualified senior head of household credit
    • 2% of California taxable income
    • Maximum California AGI of $69,005
    • Maximum credit of $1,300
  • Joint custody head of household credit/dependent parent credit
    • 30% of net tax
    • Maximum credit of $425

AMT exemption

Filing status Amount
Married/RDP filing jointly or qualifying widow(er) $86,502
Single or head of household $64,878
Married/RDP filing separately, estates, or trusts $43,250

AMT exemption phaseout

Filing status Amount
Married/RDP filing jointly or qualifying widow(er) $324,384
Single or head of household $243,288
Married/RDP filing separately, estates, or trusts $162,191

FTB cost recovery fees

Fee type Fee
Bank and corporation filing enforcement fee $96
Bank and corporation collection fee $310
Personal income tax filing enforcement fee $76
Personal income tax collection fee $194

The personal income tax fees apply to individuals and partnerships, as well as limited liability companies that are classified as partnerships. The bank and corporation fees apply to banks and corporations, as well as limited liability companies that are classified as corporations. Interest does not accrue on these cost recovery fees.

2014 California Tax Rate Schedules

Schedule X — Single or married/RDP filing separately

If the taxable income is
Over But not over Tax is Of amount over
$0 $7,749 $0.00 plus 1.00% $0
$7,749 $18,371 $77.49 plus 2.00% $7,749
$18,371 $28,995 $289.93 plus 4.00% $18,371
$28,995 $40,250 $714.89 plus 6.00% $28,995
$40,250 $50,869 $1,390.19 plus 8.00% $40,250
$50,869 $259,844 $2,239.71 plus 9.30% $50,869
$259,844 $311,812 $21,674.39 plus 10.30% $259,844
$311,812 $519,687 $27,027.09 plus 11.30% $311,812
$519,687 AND OVER $50,516.97 plus 12.30% $519,687

Schedule Y — Married/RDP filing jointly, or qualifying widow(er) with dependent child

If the taxable income is
Over But not over Tax is Of amount over
$0 $15,498 $0.00 plus 1.00% $0
$15,498 $36,742 $154.98 plus 2.00% $15,498
$36,742 $57,990 $579.86 plus 4.00% $36,742
$57,990 $80,500 $1,429.78 plus 6.00% $57,990
$80,500 $101,738 $2,780.38 plus 8.00% $80,500
$101,738 $519,688 $4,479.42 plus 9.30% $101,738
$519,688 $623,624 $43,348.77 plus 10.30% $519,688
$623,624 $1,039,374 $54,054.18 plus 11.30% $623,624
$1,039,374 AND OVER $101,033.93 plus 12.30% $1,039,374

Schedule Z — Head of household

If the taxable income is
Over But not over Tax is Of amount over
$0 $15,508 $0.00 plus 1.00% $0
$15,508 $36,743 $155.08 plus 2.00% $15,508
$36,743 $47,366 $579.78 plus 4.00% $36,743
$47,366 $58,621 $1,004.70 plus 6.00% $47,366
$58,621 $69,242 $1,680.00 plus 8.00% $58,621
$69,242 $353,387 $2,529.68 plus 9.30% $69,242
$353,387 $424,065 $28,955.17 plus 10.30% $353,387
$424,065 $706,774 $36,235.00 plus 11.30% $424,065
$706,774 AND OVER $68,181.12 plus 12.30% $706,774

Individual Filing Requirements

If your gross income or adjusted gross income is more than the amount shown in the chart below for your filing status, age, and number of dependents, then you have a filing requirement.

Filing Status Age as of December 31, 2014* California Gross Income California Adjusted Gross Income
Dependents Dependents
0 1 2 or more 0 1 2 or more
Single or head of household Under 65 $16,047 $27,147 $35,472 $12,838 $23,938 $32,263
65 or older $21,447 $29,772 $36,432 $18,238 $26,563 $33,223
Married/RDP filing jointly or separately Under 65 (both spouses/RDPs) $32,097 $43,197 $51,522 $25,678 $36,778 $45,103
65 or older (one spouse) $37,497 $45,822 $52,482 $31,078 $39,403 $46,063
65 or older
(both spouses/RDPs)
$42,897 $51,222 $57,882 $36,478 $44,803 $51,463
Qualifying widow(er) Under 65 N/A $27,147 $35,472 N/A $23,938 $32,263
65 or older N/A $29,772 $36,432 N/A $26,563 $33,223
Dependent of another person (Any filing status) Under 65 More than your standard deduction
65 or older More than your standard deduction

* If you turn 65 on January 1, 2015, you are considered to be age 65 at the end of 2014.

Source

Maximum Standard Automobile Cost (2015)

For purposes of computing the allowance under a FAVR plan, the standard automobile cost may not exceed $28,200 for automobiles (excluding trucks and vans) or $30,800 for trucks and vans.

Source

Section 6.02(6) of Rev.Proc. 2010-51.

.02 Computing a FAVR allowance.

(1) FAVR allowance. A FAVR allowance includes periodic fixed payments and periodic variable payments. A payor may maintain more than one FAVR allowance. A FAVR allowance that uses the same payor, standard automobile (or an automobile of the same make and model that is comparably equipped), retention period, and business use percentage is considered one FAVR allowance, even though other features of the allowance may vary. A FAVR allowance also includes any optional high mileage payments. However, optional high mileage payments are included in an employee’s gross income, are reported as wages or other compensation on the employee’s Form W-2, and are subject to withholding and payment of employment taxes when paid. See section 7.05 of this revenue procedure. An optional high mileage payment covers the additional depreciation for a standard automobile attributable to business miles an employee drives and substantiates for a calendar year in excess of the annual business mileage for that year. If a FAVR allowance covers an employee for less than the entire calendar year, the annual business mileage may be prorated on a monthly basis for purposes of the preceding sentence.

(2) Periodic fixed payment. A periodic fixed payment covers the projected fixed costs (including depreciation or lease payments, insurance, registration and license fees, and personal property taxes) of driving the standard automobile in performing services as an employee of the employer in a base locality, and must be paid at least quarterly. A payor may compute a periodic fixed payment by (a) dividing the total projected fixed costs of the standard automobile for all years of the retention period, determined at the beginning of the retention period, by the number of periodic fixed payments in the retention period, and (b) multiplying the resulting amount by the business use percentage.

(3) Periodic variable payment. A periodic variable payment covers the projected variable costs (including gasoline and all taxes thereon, oil, tires, and routine maintenance and repairs) of driving a standard automobile in performing services as an employee in a base locality, and must be paid at least quarterly. A payor may compute a periodic variable payment rate for a computation period by dividing the total projected variable costs for the standard automobile for the computation period, determined at the beginning of the computation period, by the computation period mileage. A computation period may be any period of a year or less. Computation period mileage is the total mileage (business and personal) a payor reasonably projects a standard automobile will be driven during a computation period and equals the retention mileage divided by the number of computation periods in the retention period. For each business mile an employee substantiates for the computation period, a payor must make a periodic variable payment at a rate that does not exceed the rate for that computation period.

(4) Base locality. A base locality is the particular geographic locality or region of the United States where an employee generally pays or incurs the costs of driving an automobile in performing services as an employee. Thus, for purposes of determining the amount of fixed costs, the base locality is generally the geographic locality or region where the employee resides. For purposes of determining the amount of variable costs, the base locality is generally the geographic locality or region where the employee drives the automobile in performing services as an employee.

(5) Standard automobile. A standard automobile is the automobile a payor selects on which a specific FAVR allowance is based.

(6) Standard automobile cost. The standard automobile cost for a calendar year may not exceed 95 percent of the sum of (a) the retail dealer invoice cost of the standard automobile in the base locality, and (b) state and local sales or use taxes on the purchase of the automobile. The maximum standard automobile cost for a given taxable year is published in an annual notice.

(7) Annual mileage. Annual mileage is the total mileage (business and personal) a payor reasonably projects an employee will drive a standard automobile during a calendar year. Annual mileage equals the annual business mileage divided by the business use percentage.

(8) Annual business mileage. Annual business mileage is the mileage a payor reasonably projects an employee will drive a standard automobile in performing services as an employee during the calendar year, but may not be less than 6,250 miles for a calendar year. Annual business mileage equals the annual mileage multiplied by the business use percentage.

(9) Business use percentage. A payor determines the business use percentage by dividing the annual business mileage by the annual mileage. The business use percentage may not exceed 75 percent. In lieu of demonstrating the reasonableness of the business use percentage based on records of total mileage and business mileage driven by employees annually, a payor may use a business use percentage that is less than or equal to the following percentages for a FAVR allowance that is paid for the following annual business mileage:

Annual business mileage Business use percentage
6,250 or more but less than 10,000 45 percent
10,000 or more but less than 15,000 55 percent
15,000 or more but less than 20,000 65 percent
20,000 or more 75 percent

(10) Retention period. A retention period is the period in calendar years a payor selects during which the payor expects an employee to drive a standard automobile in performing services as an employee before the automobile is replaced. The period may not be less than two calendar years.

(11) Retention mileage. Retention mileage is the annual mileage multiplied by the number of calendar years in the retention period.

(12) Residual value. The residual value of a standard automobile is the projected amount for which it could be sold at the end of the retention period after being driven the retention mileage. The Service will accept the following safe harbor residual values for a standard automobile computed as a percentage of the standard automobile cost:

Retention period Residual value
2 years 70 percent
3 years 60 percent
4 years 50 percent

2015 IRS Standard Mileage Rates

Optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes for 2015.

Beginning on Jan. 1, 2015, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

 57.5 cents per mile for business miles driven

23 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, including depreciation, insurance, repairs, tires, maintenance, gas and oil. The rate for medical and moving purposes is based on the variable costs, such as gas and oil. The charitable rate is set by law.

Taxpayers always have the option of claiming deductions based on the actual costs of using a vehicle rather than the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after claiming accelerated depreciation, including the Section 179 expense deduction, on that vehicle. Likewise, the standard rate is not available to fleet owners (more than four vehicles used simultaneously). Details on these and other special rules are in Revenue Procedure 2010-51, the instructions to Form 1040 and various online IRS publications including Publication 17, Your Federal Income Tax.

EFFECTIVE DATE
This notice is effective for (1) deductible transportation expenses paid or incurred on or after January 1, 2015, and (2) mileage allowances or reimbursements paid to an employee or to a charitable volunteer (a) on or after January 1, 2015, and (b) for transportation expenses the employee or charitable volunteer pays or incurs on or after January 1, 2015.

Source IRS

and

Notice 2014-79

 

2014 California 540 Tax Forms – Personal Income Tax

540 Form 2014 California Resident Income Tax Return (Fill-in & Save)
540 Instructions 2014 Instructions for 540 Form, California Resident Income Tax Returns
540 Tax Table 2014 Tax Table for 540 Tax Return
540-2EZ Form 2014 California Resident Income Tax Return (Fill-in with math features & save)
540-2EZ Instructions 2014 Instructions for 540-2EZ Form, California Resident Income Tax Return
540-2EZ Tax Table 2014 Tax Table for 540-2EZ Tax Return
540-2EZ Formulario 2014 Declaración de Impuesto Sobre el Ingreso de Residente de California (Fill-in)
540-2EZ Instrucciones 2014 Instrucciones para el Formulario 540-2EZ, Declaración de Impuesto Sobre el Ingreso de Residente de California
540-ES Form 2014 Estimated Tax for Individuals (Fill-in & Save)
540-ES Instructions 2014 Instructions for 540-ES Form, Estimated Tax for Individuals
540-NR Form (Long) 2014 California Nonresident or Part-Year Resident Income Tax Return (Long) (Fill-in & Save)
540-NR Instructions (Long) 2014 Instructions for 540-NR Long Form, California Nonresident or Part-Year Resident Income Tax Return (Long)
540-NR Form (Short) 2014 California Nonresident or Part-Year Resident Income Tax Return (Short) (Fill-in & Save)
540-NR Instructions (Short) 2014 Instructions for 540-NR Short Form, California Nonresident or Part-Year Resident Income Tax Return (Short)
540-NR Tax Table 2014 Tax Table for 540-NR Tax Return

Delivery of Electronic Services to European Union Consumers After 1 January 2015

From 1 January 2015, telecommunications, broadcasting and electronic services will always be taxed in the country where the customer belongs* – regardless of whether the customer is a business or consumer – regardless of whether the supplier based in the EU or outside * For a business (taxable person) = either the country where it is registered or the country where it has fixed premises receiving the service. * For a consumer (non-taxable person) = the country where they are registered, have their permanent address or usually live.

The effects of this are as follows: EU BUSINESSES supplying to:

1. Business in another EU country No VAT charged. Customer must account for the tax (reverse-charge mechanism).
2. Consumer in another EU country Must charge VAT in the EU country where the customer belongs (not where the business is based). Example A Polish customer downloading an App on his mobile phone from a Finnish supplier. The Finnish company must charge the customer Polish VAT. MOSS available
3. Business or consumer outside the EU No EU VAT charged. Example A Hungarian company sells an anti-virus program to be downloaded through its website to businesses or private individuals in Australia. NO VAT But if the service is effectively used & enjoyed in an EU country, that country can decide to levy VAT (option for Member States).

NON-EU BUSINESSES supplying to:

1. Business in the EU No VAT charged. Customer must account for the tax (reverse-charge mechanism).
2. Consumer in the EU (telecoms, broadcasting or electronic services) Must charge VAT in the EU country where the customer belongs. Example A person living in Barcelona pays a US company for access to American TV channels. The US company must charge the customer Spanish VAT. MOSS available

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Increase of the Arkansas Minimum Wage (2015)

Overview
On November 4, 2014 Arkansas voters approved an increase to the state’s minimum wage. The minimum wage increase is as follows:
$7.50 per hour effective January 1, 2015;
$8.00 per houreffective January 1, 2016;
and
$8.50 per hour effective January 1, 2017.
Currently, state minimum wage is $6.25 per hour
and federal minimum wage is $7.25 per hour.
Coverage
The Arkansas Minimum Wage Act covers employers with 4 or more employees
Employers
covered by the federal Fair Labor Standards Act (FLSA) are also covered by the Arkansas law if
they have 4 or more employees. An employer covered by both laws must pay the highest
minimum wage.
The Arkansas Minimum Wage Actexempts some employees from both the minimum wage
requirement and from the overtime pay requirement. Some employees are exempt only from
the overtime pay requirement.
Tipped Employees
The state tip credit did not change, so tipped employees must still be paid
a minimum of $2.63 per hour and tips must be sufficient to raise the employee to the
applicable minimum wage rate.
Poster
The required poster has been revised and is available online here.
Recordkeeping
Recordkeeping requirements have not changed.