Important IRS Tax Changes for 2016
Our accounting firm takes notes of changes every year that would effect the majority of our clients. Congress released it's year-end deal on taxes and spending in December 2015, we've decided to highlight the most notable changes chosen by our team:
Important Change(s) for Individuals:
Change(s) for Businesses:
Achieving a Better Life Experience (ABLE) account. This is a new type of savings account for individuals with disabilities and their families. For 2015, you can contribute up to $14,000. Distributions are tax‐free if used to pay the beneficiary’s qualified disability expenses. Don't deduct your contributions on your tax return.
Due date of return. The due date to file your tax return is . The due date is , instead of , because of the Emancipation Day holiday in the District of Columbia—even if you do not live in the District of Columbia. If you live in Maine or Massachusetts, you have until . That is because of the Patriots' Day holiday in those states.
Direct deposits of refund to a myRA® account. You now can have your refund directly deposited to a new retirement savings program called myRA®. This is a starter retirement account offered by the Department of the Treasury.
Health coverage tax credit. . The health coverage tax credit, which expired at the end of 2013, has been reinstated. See Who Should File , later. See chapter 38 for information about the health coverage tax credit.
Expired tax benefits. At the time this publication was prepared for printing, certain tax benefits had expired. These included the deduction for educator expenses and the tuition and fees deduction. You can find out whether legislation extended these and other tax benefits to allow you to claim them on your 2015 return at www.irs.gov/pub17.
Make sure you're getting all the credit you can when filing this season for 2015. If you need help with your return, contact your experts at Kim R. Coyle CPA & Associates.
staff | 01/13/2016