It's Almost Tax Time!!
We know you are all itching to file your taxes...well, those of you that are getting money back really might be, but for the rest of us, here are some dates to remember and some changes going into effect for the 2016 filing season.
-All W-2's are due to the Social Security Administration (SSA) by January 31, 2017. That being said, they should be to you around that time, give or take a few days.
-All 1099-MISC are due by January 31, 2017. This is a welcome change for any contractors who are used to not being able to file until the end of February!
**The penalties for employers not filing w-2's or 1099's has also gone up, so hopefully this will light a fire under them to get us our papers ASAP!!
-If you claim Earned Income Tax Credit or Additional Child Tax Credit, your refund won't be processed until February 15th. The IRS is warning that you shouldn't expect your refund to come in until the end of February. This all being said, you DON'T have to wait until February 15th to file your return.
Mileage changes for the 2016 tax year-
- Work related mileage dropped to 54 cents per mile, down from 57.5 cents in 2015
- Medical or moving purpose mileage is now 19 cents per mile driven, down from 23 cents in 2015
- Charitable organization service is 14 cents per mile driven
Come on, you know you're excited... I'll explain how this works at the bottom.
** The Personal Exemption is now $4,050 per person, up from $4,000 per person in 2015.
How this works is:
- Adjustments (Student Loan Interest, Tuition & Fees, Educator Expenses, Moving Expenses, Alimony Paid, etc...)
Adjusted Gross Income (AGI)
- Deduction (Standard or Itemized)
- Personal Exemptions
This is where the charts come into play... It will only be an estimate, but you can get an idea of what your tax liability (or refund) is going to look like.
As always, if you have questions, feel free to call or stop by the office and we can help you. If you always end up on the paying end of this tax equation, we can also help you to understand why & the steps you can take to prevent, or at least lessen, this burden.
Happy Tax Season Folks!!