The tax landscape is shifting this year, and there have been some new additions that you need to know about:
Your Refund May be Delayed!
For those of you claiming the Earned Income Credit (EIC) or the Additional Child Tax Credit, you may not see your return until at least February 15. Typically you can expect your tax return within 21 days, but this year it may take a bit longer. On the plus side, this gives the government more time to detect any tax fraud that may be occurring, which is good for you, me and everyone around us.
Your W2’s will now come equipped with verification codes. This is being done in order to fight against tax related Identity theft, something that you can combat yourself as well. Make sure to watch out for this 16 digit code when it’s time to file.
The Standard deduction now goes up to $9300 if you are the Head of Household, which is up $50 from 2015. All the other standard deductions, however, remain the same.
Health Insurance Tax Penalties
Tax penalties for those without coverage is now 2.5% of your adjusted gross income, or $695 per adult, whichever is highest. Other penalties include: $347 for children under 18, and a maximum amount of $2085 for families. Whew!
HOWEVER, there are a few exemptions that can get you out of being penalized: homelessness, bankruptcy, low income or eviction all qualify. Make sure to check if you do too!
Tax Deadline Moved
Finally, the tax deadline, which is normally April 15, has been MOVED in observance of emancipation day. The new tax deadline is April 18, which will give you a great chance to procrastinate for three additional days.
For more info on any other tax changes that may affect you, visit your local One Stop Tax and our tax professionals will give you a complete rundown of what you can expect, what you can take advantage of, and hey, while you’re there, we can do your taxes, too.
Tags: deductions, tax facts, tax laws, tax prep, taxes Posted by