Many people feel like tax season just ended, but there are others who are ready to see it roll around once again. However you may feel about tax season, the fact is that it is quickly approaching. With that being said, here are some legislative changes, tax issues and concerns that will be prominent for 2016.
The penalty for the lack of individual health care coverage increases to the higher of 2 percent of yearly household income or $325 person per year, with a maximum penalty per family for those using this method of $975. This is an increase from 2014 and 2016 will be a lot steeper.*
Per-Person Penalty Amount
Percentage of Income
The Form 1095-B and Form 1095-C, which were optional for calendar year 2014, must be filed by any person that provides minimum essential coverage to an individual (1095-B) and by applicable large employers (Form 1095-C) who had on average at least 50 full-time equivalent employees during calendar year 2014 or small employers who are member of a controlled group that collectively had at least 50 Full Time Employee’s (FTEs) and who offer an insured or self-insured plan or no group health plan at all. Please be aware of what forms you should receive before filing your taxes for 2015.
In the past year, we have seen that even the IRS is not safe from identity theft. However, the IRS is taking more precautions when it comes to your tax returns. Under new policies, if the IRS feels that suspicious tax returns have indications of involving identity theft but contain legitimate taxpayer’s name and/or Social Security number, they will stop the return and the taxpayer will receive a letter for verification.
All states must now recognize all married couples in the same way for state income tax purposes, regardless of gender. This will impact the ability to file joint income tax returns, the ability to transfer property to each other tax-free, the ability to leave an estate to the spouse without gift tax implications, and spousal treatment of inherited IRAs.
Under new rules proposed by the Obama administration, the Department of Labor would require most salaried workers earning less than $50,440 annually to be paid 1.5 times their normal pay for time worked beyond 40 hours. This is slated to take effect, if passed, on Jan. 1, 2016.
In observance of Emancipation Day on Friday, April 15, 2016, taxpayers will have until April 18, 2016, to file their 2015 individual returns and make their first 2016 estimated tax payment. Taxpayers in Maine and Massachusetts will have until April 19, 2016 to file their returns due to the observance of Patriots Day on April 18.
These are just a few things to consider for the upcoming tax season. At least one of these changes
will affect you or someone you know. Please share this information with others.
Also, if you have any questions concerning of these upcoming 2016 Tax Changes, please don’t hesitate to contact our office to