What Tax Changes Can You Expect Next Year?
With the New Year almost here that means several new tax changes are on the horizon. These changes are for 2016 and do not apply to the taxes you will be working on in the next few months before April’s deadline. However, it’s a good idea to know what to expect as the new tax year kicks off, because tax-preparation is really a year-round endeavor.
So let’s look at some of the most important tax changes for the coming year. First off, the deadline will be April 18 this year because April 15 falls on a federal holiday, Emancipation Day. So Monday April 18 is the day for most taxpayers, while for people in those states that celebrate Patriot Day the tax deadline will be April 19.
Another change to be aware of is that the tax penalties for not having health insurance, under the Affordable Car Act, will be increasing again. An adult will pay a $695 penalty for not having insurance or 2.5 percent of his or her income. There were will be a maximum amount a family has to pay but that amount will go up from $975 to $2,085 next year.
Tax brackets will be going up slightly in 2016. You can click here to see those brackets. If you file as head of household then your standard deductions are rising by $50. Likewise, personal exemptions are also increasing by $50 in 2016. Other changes include increased limits on health savings accounts, a slight increase in the earned income credit, and a $300 increase in the exemption from the Alternative Minimum Tax. Lastly, the estate tax exemption is also increasing, by $20,000.
As always GROCO will be there to help you make sense of all the tax changes this year and to make sure you understand how they will affect you. Just contact us for assistance at 1-877-CPA-2006 or click here.
Why Are the Ultra-Wealthy So Good at Avoiding Taxes?
While many in the media, as well many lawmakers on the left, would have you believe that the nation’s wealthiest individuals are really good at skipping out on their taxes and that they don’t pay their fair share, the fact is, in most cases, that’s not true. Yes, it is true that many of he…
Why Aren’t People Spending Their Tax Refunds?
Economists, politicians and people in general like to discuss the nation’s economy and where it stands at any given moment. There are many different points that are touched on and several aspects that are used as evidence to make important points. However, one indicator of the economy’s health that can never really be argued is…
Tax Exemption Legislation Could Be Good News for Political Donors
The Republican lead Congress recently passed some new legislation – without garnering much attention at all – that could be a big boon for major donors of political organizations and groups. The bill could protect big donors from having to pay gift taxes on their large donations to these political groups. The bill, which is…
To Extend or Not to Extend, That Is the Question?
Have you looked at your calendar yet today? Have you noticed that April 15 has already come and gone? Of course, it’s pretty hard to miss tax day, but some people actually do. So should you file an extension now if you didn’t make it on time? Some people believe filing an extension is a…